In the past, when my methodology for pricing a site was more along the lines of "eyeball and guess", I just presented a discounted price of what I thought they could afford, without any mention of normal price and several times had people try to get me to lower it yet again.... which at the time, I likely did, because I had no idea how much time it would take anyway...
I think that for many people who are getting into a new business and who need to build a customer base this is a good option. The trick is to know when to develop into an established professional business by quoting on your own cost plus margin rather than on their budget.
You can see time and again in major IT developments, including outsourcing, that vendors will still try to pitch according to the client's budget and that these projects often go off the rails after about 18 months. There is a new one of these disasters just getting signed up here, between our Inland Revenue Department and EDS. Yes, I know you've seen it all before, but the NZ Govt hasn't.
There are many good arguments for premium pricing rather than discounted pricing, and I am sure that Web development is a sector that premium pricing works well in. If you run into a client who really would be better off with a Front Page template - and there are some who would - then let them go and don't try to win their business by discounting. These clients don't need Web strategies, ROI stats, search engine optimization, visitor tracking, and even a listing in DMOZ. They just need a website with their address and telephone number on it. And that kind of work isn't what you guys excel at.
Regards, David
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