In this article, you will learn:
Story of a big web project opportunity that went wrong
My big mistake
How to price a web design proposal
Using the right tools
Tips to improve your pricing process
Action plan
Let's get into it!
How It All Began
It all started when a potential new client reached out about meeting up to discuss a web project idea.
So we met at a local cafe while he talked about his idea - an online stock trading platform for investors.
After we met, I gathered the team to dig deeper into what features he needed to build. Then, the client and I had a follow-up session to nail down the specifics like live market data, custom price alerts, portfolio reporting, etc.
Next came the tough part - figuring out how much to charge for it.
We decided a mid-five-figure quote seemed reasonable.
I sent the proposal.
And guess what happened?
Nothing...
I started to worry - was our price too high? Did he get cold feet?
I reached out a few times, checking if he had received the proposal, and l and finally heard back.
Unfortunately, he said our proposed price was way beyond his budget.
When I asked what he had realistically budgeted for the project.
He said less than $2,000...
After all that time spent strategizing, planning, and meeting with developers - how could we build this complex custom platform for less than two grand?!
And That’s When I Realized...
A complete failure to manage expectations and qualify this lead from the very first conversation.
We got so carried away with designing the perfect platform that we should have confirmed whether the budget was reasonable before spending weeks preparing the proposal.
The problem?
Expectations.
The client assumed this would be quick and simple without knowing the underlying complexities.
At the same time, we anticipated an intricate project warranting a large budget.
The Takeaway?
Looking back, when I think, “what should I have done differently?”, one thing pops up…
I should have a simple qualifying question within the first 5 minutes:
"Do you have a set budget for this project, and is it over $X?"
If he answered yes, I would continue discussing his needs and vision.
If the answer was no or the budget was unrealistic, I would know this lead should work with someone else.
How do I know what dollar amount X should be for my minimum budget?
There's no one-size-fits-all figure - it depends on your expertise, overhead costs, project scope, and other factors.
It often starts with a gut feel estimate, but the key is having that conversation upfront.
For those who to learn more about how I price projects now, I share more in this video:
So I learned a lot from this process.
After that experience, I now ask clients about their budget expectations early to qualify if a project is viable for my services.
Wait For The Perfect Time
Disclose your budget for the project in the first five minutes.
Yes, 5 minutes.
Why so soon? Because time is valuable and I don't want to waste hours or days strategizing for leads that don't fit my pricing model.
That's precious time I could spend growing my business or enjoying my hobbies like golf and tennis with friends and family.
Want a bonus pricing tip?
Always provide 3 pricing package options in your web design proposals, not just 1.
Early in my career, I made the mistake of only including a single project price.
But soon enough I realized I was leaving money on the table by not providing any price benchmarks.
The Art of Price Anchoring
Imagine if you saw a $10,000 Rolex watch...would you have any frame of reference for if that's overpriced or priced fairly?
Likely not. But what if you saw it next to a $100,000 Rolex?
Instantly, you determine the $10k Rolex is more affordable in comparison.
In marketing, that technique is called Price Anchoring.
And we can implement a similar approach with packaging our web design services:
Option 1 should be your minimum budget or baseline price. Let's say $3,000.
Option 2 increases that price by roughly 50% to seem like a good middle-ground option. So, around $4,500 here.
Option 3 is your big one - increase Option 2 pricing by 80-100% and offer your premium package. In this case, $8,000.
By presenting 3 clear pricing options, most clients select Option 2.
It's positioned as the happy medium in terms of budget and features.
And some choose option 3.
This simple change in my pricing strategy significantly increased my profits.
So, What Comes Next?
Now that we've covered the foundations for pricing web design proposals, what comes next?
You need an efficient system for actually creating and sending those proposals!
Use ClientManager, which includes a pre-made template I can easily customize for each project.
Wix Studio: My Personal Choice
Stop coding from scratch and use Wix Studio to create premium sites - fast.
Browse their templates or use components to get an awesome-looking website in a fraction of the time.
I don’t get slowed down by technical limitations with their no-code flexibility, integration capabilities, and automation.
Let’s Recap
Key lessons from my early pricing mistake:
Qualify leads upfront - Ask about budget expectations before spending time on proposals.
Provide transparent pricing packages - Gives clients options and benchmark value.
Streamline proposal process - Use tools like ClientManager to instantly get signed proposals.
Leverage platforms like Wix Studio - Speed up website delivery with templates and automation.
I’d tell my past self to hang in there...
The trials and lessons learned from that trading platform experience paved the way to running a successful web design agency today.
So now the question is:
How will you handle your services the next time you get a lead?
Hope this helps, and if you need help on your freelancing journey, join FreelanceFam.
Cheers for now,
Kyle