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HOW DO I KNOW MY PRICE IS RIGHT?
spaceSet your rates using How to Price Graphic Design & DTP Services or Pricing Guide for Web Services ($34.95 each) These books clearly explain how to set prices that work. (Both books also include tips on estimating, bidding and negotiating jobs.)
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“Pricing Guide for Web Services — 2nd Edition”


INTRODUCTION


Incredible Opportunities

“Our world will never be the same again.”

indenting a paragraph This book is a no-nonsense approach to making money at the on and off-ramps of the information data highway. It's about setting prices to achieve business success beyond your wildest dreams.

The Future is Here (and It's OnLine)
indenting a paragraph The Internet is driving a fundamental change in the way we communicate. People all over the world are going "on–line". And e-–commerce is exploding. Companies in every major country have developed (or are developing) a unique Internet presence to communicate with customers, vendors, and each other.
indenting a paragraph Today, buying customers can come from every corner of the globe. Even government offices, libraries, radio and TV stations, newspapers, magazines, and professionals are linking up electronically. There is no end in sight for the dramatic rise in the use of the Internet. According to a recent article in the Los Angeles Times, over half of all venture capitalist investments are going to companies that help other businesses tap the Internet. These companies provide Web page design and development services, and the future for these types of businesses has never been brighter.
indenting a paragraph A year ago, skeptics insisted that few people are making money on the Web. They claimed that only marketing and advertising companies were successfully selling on–line. They didn't foresee the billions of dollars being spent today through on–line investing, real estate transactions, home shopping, bookstore sales, and e–commerce at a myriad of small business boutiques. Over 17 million US households shopped online in 1999 pushing e–commerce sales to over $20 billion. Within five years this figure will top $180 billion
indenting a paragraph Hundreds of thousands of businesses are trying to gain a foothold and claim their territory in this amazing market. Every business wants to sell products and services using the Internet as their medium for reaching clients and customers. Information is the key, and the Internet abounds with answers to almost any question we could pose. Today, the first place that most young people go to find answers is the Internet.
indenting a paragraph The growth of access to the Internet has consistently improved, and everyone today feels a need to be on–line. Over 50 percent of the US population is now online, and the rest of the world is rapidly catching up. Globally, about 10 percent of the world's population is now on the Web, up from four percent at the turn of the century. Current estimates are that there are over 160 million Internet users worldwide. And a recent survey predicted that 80 percent of all business transactions will occur online within four years. Like many earlier predictions, this, too may be overtaken by events and the rapid adoption of technology before the time estimate is reached.
indenting a paragraph A sidebar in INC magazine described a recent Internet use survey that concluded that half of the people who use the Web, do so for the following business purposes:

– gather information
– collaborate with others
– provide vendor support and communication
– research competitors
– communicate internally
– provide customer service and support
– publish information
– purchase products or services
– sell products or services


indenting a paragraph Currently the most popular use for the Internet is e–mail, followed by research and then e–commerce.
indenting a paragraph With this tsunami of activity occurring in and around the Internet, almost every business feels a need to have an Internet presence. But few know how to accomplish this feat. This fact has provided a remarkable opportunity for those individuals who can help companies build a suitable on–line presence and conduct electronic commerce on the Internet. The time is now for service providers to stake their claims and exploit this gold mine of new business at the on and off ramps of the Internet data highway. Entrepreneurs who drag their feet may find themselves eating the digital dust of visionaries who sweep past them to claim the treasures at the end of this electronic rainbow.
indenting a paragraph Industry researchers see fantastic opportunities for Web service providers. According to Computer Reseller News, "It is no secret that the Internet has grown over the past year like a spider web in an abandoned garage, giving birth to dozens of one–or two–person shops that specialize in building [Web] sites."
indenting a paragraph While thousands of people experiment with their own Web pages, in the end, good design and good content determine who wins the economic war for business on the Web. A recent study by Gartner Group and reported in Infoworld concluded that most Web sites fall short of what customers want. Most sites don't get re–visits by those clicking onto their pages because they just don't have what attracts and retains customers. In fact, 75% of all the sites surveyed need a major redesign. And EVERY site seems to be in constant revision. What an opportunity for you!
indenting a paragraph There are enormous profits waiting for those who know how to design and present information for on–line use. Graphic designers, desktop publishers, animators, and multimedia artists are nicely positioned to exploit this huge and growing market. There's also a profit place for the technicians who understand servers and networks. Service providers who can write Internet–related code such as HTML, DHTML, CGI scripts, and design online databases, develop Web animation and banner ads, use Web page editors and design good–looking Web sites are literally worth their weight in gold. Web authoring has become the desktop publishing of the 90's, and the Internet is a treasure chest of profit for those with the skills to work in this medium.
indenting a paragraph Just as traditional businesses are adopting the Internet as another profit center, so are designers and developers who include Web site design in their portfolio of service offerings. Yet there are many service providers who simply don't have a clue what to charge for their work.
indenting a paragraph A recent query to our Real Prices CONFIDENTIAL database shows a wide range in the billing rates for Web service. This is typical of a new business model and much like what we saw in the early stages of the desktop publishing revolution. New Web service providers are not sure how to price their work. We found Web site design going for $12 to $250 an hour, Web page design going for $30 – $1,500 a page, Web consulting for $25 – $300 an hour, and HTML programming for $25 – $240 an hour. Like desktop publishing, Web service prices should settle within a narrower range as owner–operators become more experienced and learn the true value of what they offer. Since Web service is labor intensive, the profit potential is huge for individual owner–operators who bill by the hour or by the job.
indenting a paragraph Just about anyone with a technical skill can discover and mine a niche in this Internet gold field. Carve out your own niche in this huge profit pie by creating value for potential customers. Develop the skills and then find ways to generate higher value relationships for your clients–relationships with their own customers, their suppliers and with their investors. Then charge what you're worth. Remember. Value is not what you think your services are worth. Value is what a customer will buy.
indenting a paragraph The Internet is the ultimate “revenge of the nerds.” And many are being richly rewarded for their knowledge and abilities.
indenting a paragraph This book is designed to help professionals who live and work at the on and off-ramps of the Information Data Highway. It's designed for those who seek their fortunes on the crest of the "4th Wave". This book is designed to make Web service an incredible money-maker for you.

How to Use This Book
indenting a paragraph This "meat and potatoes" reference is full of pricing tips, tricks, and techniques designed to help you make money. Use it to develop strategy and tactics. Use it to set prices that generate high profits.
indenting a paragraph But also use it to help educate others. The Web services market has room for everyone, even your competitors. One of the major complaints of Web designers concerns "propeller-heads", "technophiles", and "newbies" who do work at rock bottom prices or for free. The best way to counter cutthroat pricing is to educate others that Web service is a profession, not a hobby.
indenting a paragraph Show them this book. Call them. Suggest that they buy their own copy. There's plenty of business for everyone. By helping others approach Web service as a business, correct value signals are passed to the marketplace, and all Web designers and developers can make good money while enjoying their work. Web service is about value and profit. This book shows you how to make it a valuable and profitable business for your own company.

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