Brave or Stupid?

[FionaFell]

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Arnold,

I am testing the ‘call to action’ link leading to a new page that then holds the form for more info, VS having the form on the page without the extra ‘click’.

Have a few more pieces to test over time too.

Cheers, Fiona

[Arnold Shields]

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Split testing is one of the fun jobs. We have small side bets in the office on which one will win.

[DS_BVS]

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Very interesting Fiona. You are using some powerful marketing tools in doing this and the flowchart logically leads the prospect through the process.

Firstly you have differentiated yourself in the market & that is a higher tiered strategy. Secondly you are establishing a great cash flow strategy if they will pay up front. If not you can still break the price into just a couple of payments.
Thirdly you are building a position of trust in the relationship with the client. If you maintain this I suspect that referrals will flow readily.

You need a contingency for when the client just doesn’t like what you have produced and this will happen from time to time. Try to show as much of your work as you can and any testimonials would be great. Communicate regularly with your client to generate feedback as you go and if you act ethically and perform well I think you might find this a positive experience.

Good luck.

DS_BVS

[Clarkey]

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I find this topic really intriguing, both from a business point of view and how I perceive things as a customer.

I work in a big box retail store and in our industry / market it is almost ALL about price. The products we sell are readily available in many stores and there is no ‘badging’ that can create the false differentiation of other retail categories. Any attempt to base your offer on much else is unsustainable in the long term. Anybody who tries to convince otherwise should come and spend even 1 hour on our sales floor. Even our regular customers still shop us out either before or after getting their price from us…..

The pricing of services, as a consumer, has to be one of the most confusing factors of dealing with a business that is not based on a physically defined and fixed product.

Personally, using Fiona’s website as an example, I do like the clearly defined process steps as it creates a set of expectations that I can relate to as a customer. Unfortunately I would be more drawn to the page that offers a $900 package. Not because its the ‘cheap’ option, but because it lays a basis of what the service offered will cost (let’s forget worth for the moment) and negoitation / planning / options can be discussed from there.
The other option of defining my budget does 2 things. Firstly, it creates an element of cynicism, but that it possibly just me. Secondly, it makes me feel that I need to speak to someone else first to get a reference point on what the cost might or should be. This is because I have zero experience or knowledge on web design and market prices. I’d be hesitant to fill the form before having initial discussions due to a fear of either under or overestimating the required investment. Neither of these is a good starting point.

When I am ‘shopping’ for a service provider, most recently it has been trades for home reno, I am immediately drawn to someone who provides an indicative pricing structure up front. It shows a confidence in both quality and price in that they are willing to put it into the public domain. In contrast to others who won’t give anything away until they come to quote – of course after asking if we are working to a budget……

This is where a personal referral makes such a difference. It shows someone has previously been happy with the work, but it also provides a chance to quizz on what the cost should roughly be.

In terms of the worth or value of the service. I’d firstly like to offer the following perspective; as soon as you add something in to increase the value of the proposal (either physically, or through additional service level etc) you are really DISCOUNTING – reducing your asking price for the full initial worth of your offering. If you don’t see it that way then perhaps the extras aren’t really worth what you are telling your customer that they are???

I would hate to begin to know the decision making process a service business goes through to set their prices. I’m sure/hope there must be some market research to understand where the marketplace is, and then trying to place themselves in the mix where they belong, based on quality / experience / others???
I’m also sure that some categories of service begin to price purely based on supply and demand. For example, the breakdown service providers in our industry charge prices that I cannot imagine too many people paying if their product was out of warranty. But, they tell us that due to less and less providers they are always busy. Hence, they will continue to charge more and more accordingly. What consumers may not realise is that they eventually pay for this regardless as warranty repair costs increase, suppliers charge retailers more for goods, retailers charge more to consumers…….

I’m sure there are many other situations that make the determination of what a service is worth compared to what it actually costs a very interesting discussion. This is irrespective of how you package it when either advertising or quoting etc.

I’m sorry this has been such a waffle to begin……. one final point in particular relating to Erik and his real estate example. It appears to me (from reading his website / linked article / blog etc) that his success is purely driven from the committment of himself and his partner. But, I have to wonder if their model is sustainable if in expansion the people involved are not as committed to the ingredients that brought the intial success (like being available by phone 8 till 8 and 7 days!!!) It’s a worthy question for anyone setting up a service based business with BIG plans and dreams.

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