[thelist] a little help with pricing a website

martin.p.burns at uk.pwcglobal.com martin.p.burns at uk.pwcglobal.com
Thu Jul 5 04:06:54 CDT 2001


Memo from Martin P Burns of PricewaterhouseCoopers

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Hey Ted

Pricing's an interesting thing. In theory, you have 2 price points:
1) That which covers your costs (note this includes *all* costs,
    especially the fixed ones... that's a story in it's own right) and
   contributes to a net profit
2) That which the customer is prepared to pay for your services.
   This is affected by market conditions of course, but a service
   offering is never simply substitutable for another vendor because
   there are so many variables in quality of work.

As long as 2) is above 1), you can get business profitably
(hurray!). If your price is in that zone, then you (by definition) aren't
undercharging or overcharging.

Cheers
Martin




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Subject:  [thelist] a little help with pricing a website

however, i don't want to overcharge my client (and
especially not undercharge him).



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