“Never compete on pricing.” Woa! What do you mean? Never compete on pricing? This means that you will loose out on prospective clients. Hmm. Let me guess! A big no and a little yes.
NO
A big no if you think by not competing on price you will loose a prospective client every time. There will always be somebody in the market ready to undercut you for a lower price. I have been getting emails and SMS on my mobile stating proudly, “Full dynamic website with web space and 5 pages for Rs.2,500/- only” or “Get a website for Rs. 500 per page only.” Yeah, right. People don’t know that these so called “Companies” do a very shoddy job. Think about it. There will be at least 2 people involved in the project and both will need to be paid. How do these companies then afford to keep their cost low? Well, they hire freshers or keep trainees and pay minimal amount or not pay them at all. In turn they do a shoddy job as there is no motivation at all for working. They have some readymade templates and voila they are good to go. So, can you create a website from scratch by doing it for free? I don’t think so.
That is why, we at weblancer, never compete on pricing. We charge what is right and just. We not always think about profit margins. We think that if we do a good job the client will never go anywhere else but come back to us always. We solve the problem and give solutions to the clients. And solving a problem and giving solutions take time and money. So, we charge what is required and what is right. We don’t do a shoddy job so hey, we will not give you a solution in Rs. 2500/- but we will give it in Rs. 25000/- because that is what it costs to create that solution.
In my experience so far even if the prospect does not convert into a client immediately, they have converted in a year or so. Why? Because they got to know that what I am asking is worth it. Or they came back to me after suffering at the hands of the cheap labour.
Yes
Yes, you will loose client if you get undercut. But hey, take it as a blessing in disguise because then the time, which you would have spent making a loss, can now be utilised to create a solution for an existing client who will give you work again and again; thus, you are creating profits from that.
And the prospect might come back later, after incurring a huge loss, to you for a solution. Believe me I am writing this from my experience.
Loosing a prospect is a very small price to pay (if you are not loosing all the clients!) because that loss will later get converted into profits.
Weblancer never competes on pricing. We give a price which is right and just.