Akshay KalraAssociate Project Director - Web Development| Online Reputation India LimitedNew Delhi, Dl, India
It becomes were tedious to justify the project cost. In market websites can be developed for INR 5000 to INR 10,00000. Want to learn how to market my proposal and justify the costing.
One point can be qualified and experienced resources you have. But players in market are closing deals at very less price and it has started disrupting the market. Saving Changes...
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Michelle CampbellProject Manager/Program ManagerPlano, Tx, United States
Just some thoughts on the info you posted:
- If you have a solid pricing method you believe in, you really don't have to 'justify' your price. Your price is your price.
- If you do not have a reliable pricing model, take aside time to develop one, incorporating best practices.
- In terms of market, think of and establish what sets your work apart from others. What is your competitive advantage?
- If other players in the market pricing less, ask yourself what do they know that you don't. Maybe their pricing model is different? Have access to cheaper labor? Aiming for a loss leader position?
- Ask yourself how they are disrupting the market and if you want to go that direction. You may find you have interest in going another direction. Saving Changes...
Thomas WalentaGlobal Project Economy ExpertHackenheim, Germany
Akshay,
selling a price for a project is a common pain. It exists in commercial settings (customer-provider) and also in internal situations (e.g. business-IT).
There are some situations where you can sell at a price you can live of: a. you have a unique position/solution (USP), b. you have a existing relationship/trust with the buyer, c. you have economies of scale.
As a new entrant developing websites, you probably have none of the above.
C then is not an option, before you can scale you need to have a viable solution. B is probably the easiest option and A requires you can invent something that is hard to copy and useful to customers (something most startups work on).
For going after B, you need to get into sales mode. Extend your network, learn how to influence people (don't push), maybe partner with good sales guys.
Or, think about something else interesting to you where you can drive A. Without passion it won't work though. Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
My recommendation is taking a look to Solution Selling (SPIN Selling is other name). No matter than, everything changed about selling something starting for new ways to put in place things like Porter Forces. Saving Changes...
Peter RapinSubject Matter Expect; Project Delivery| Independent ConsultantOntario, Canada
There are two basic ways to price a project: 1) costing - delivery will take so much effort and the cost of that efforts is [so much] plus a necessary markup to allow for overhead and risk, and 2) marketing - the market for this particular services is [so much] so one has to apply effort accordingly (or take a loss).
For 1) costing, your skill has to be in analyzing the required effort and effectively applying that effort
For 2) marketing, your skill has to be in market knowledge, analyses and selling. The key to this approach is to understand the value to the client of the service being offered.
I would suggest you focus on client value - how your product will have more value than his other options. The client doesn't care about your costs, only what the product means to him. Saving Changes...
I would consider Market Driven Target Cost, or what you think your customers would pay for the product. Your price justification is the value you provide to the customer. If there are multiple similar products on the market, the differentiation of your product features from the competition is the explanation of the price difference between your product and that of your competitors. Saving Changes...
Financial Management Specialist | US Peace CorpsYaounde, Centre, Cameroon
The value your product will produce should be a determining factor during pricing Saving Changes...
Andrew SoswaTechnology leader| Leading global financial institutionElk Grove Village, Il, United States
Akshay,
I like Michelle and Thomas's posts. What most of the above responses are driving - is self-analysis:
1. Determine your firms' size (are you the army of one or you already have a team, or large org)
2. Find your closest competitors (not by distance but by size, team composition, and the products you offer)
3. If legal and ethical, determine the type and costs of projects that your competition is getting
4. That will be your market
You have few resulting strategies:
A. Cost-strategy is good for new entrants but there will always be a guy who will try to undercut the prices
B. Being a "niche" provider is better than broad market provider - try to specialize in a few things that your competitors don't do very well (i.e. your product might be mediocre but your sales team knows how to sell, or you might specialize in superior customer service)
C. Blue Ocean Strategy "is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand" is doable if you are very good (or have a team) with a good product, sales team, marketing funnels
D. Disruption is only possible if you think outside-the-box and change the models (i.e. product, delivery, customer, usability)
Additionally, it is not uncommon for new entrants to ask for "shortcuts" to full-blown competitive market strategy. There are frameworks as indicated above - but you is you, and you have to work hard over long period of time and develop your own. Improvise, Adapt, Overcome. Saving Changes...
Marcus UdokangProject Manager| Aivaz ConsultingCalgary, Alberta, Canada
Figure out a pricing model, but be ready to modify it over time. Find a niche in the market. You may be able to find cheaper labour, but don't let that mean you should produce cheaper quality products. Economies of scale are crucial. Saving Changes...
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