I agree with David.  I just took a business course where in 11 weeks you're
shown everything about starting a business in a nutshell (Yes, I realize
there's no way to know it all in 11-wks, but you can't know it all in 11
years, either.)  The hardest part of the course was the actual pricing!  

As far as what entry-level Web folks get paid at an existing business, that
depends on location, skills and the hiring company's budget, and often the
budget of the department.  Sometimes you're paid far under what you'd be if
you worked right next door. (Ouch!)  This article came out 9/99 and might
give you a little insight:
http://internet.about.com/industry/internet/library/weekly/1999/aa092199.htm?iam=ask&terms=What%27s+the+entry+level+salary+for+a+Web+designer%3F.

Another thing on pricing services/products: remember we're in the age of
Brand Names are Everything.  

Remember the Sauve commercial?  Two women with "pretty" hair.  The question?
Who used Sauve & who used the salon shampoo?  The answer:  If you can't
tell, neither will we.  The purpose?  To promote purchase of the cheaper
product because the perception is expensive is better.

If Nike sells for $50, Reebok for $80 and K-mart for $10 and the product
looks the same, a lot of people are going to go Nike because it "must" be
better than K-mart...look at how cheap K-mart is (the materials are probably
cheap, too!), and they'll avoid Reebok, because it's a bit too high.  Some
are going to go for Reebok, just because they've got the extra cash and feel
that the higher the price, the higher the quality, but there are fewer
buyers.  The reality:  it's unlikely that Reebok is better than Nike for the
same product or that K-mart isn't as good because they drastically undercut
the competition...but the perception.....even though all three products are
nearly identical.

Good Luck!
Vickey
:)
On Mon, 22 May 2000 23:50:59 -0400, David L. Semans wrote:

>  Keith,
>  Your point is well taken.  I guess what I was trying to say is that it is
>  easy to price yourself right out of business.  A business owner needs to
>  know what their time is worth.  You can have all the work in the world,
but
>  at $2.50 an hour you won't be in business long.
>  Your strategy for acquiring clients due to value (low price and good
work)
>  is a great way to get started. The key here, is knowing when you are
>  established enough to take your rates to the level they should be.  It is
>  easy to get a lot of work lined up when you are affordable and good at
what
>  you do.
>  The key to charging for your services, is to maintain your professional
>  image.  Don't let the customer push you around - be confident, but don't
>  promise anything. Promise only _some_ of what you are capable, and
perform
>  far beyond your promises.  Clients will rarely complain about your rates
if
>  you go the extra mile for them, just don't tell them you are going to do
>  that before hand! :)
>  
>  David L. Semans
>  
>  
>  
>  > -----Original Message-----
>  > From: Keith D Sellars [mailto:Keith(at)webgraffix.com]
>  > Sent: Tuesday, May 23, 2000 11:25 AM
>  > To: David L. Semans
>  > Cc: hwg-graphics(at)hwg.org
>  > Subject: Re: How much to charge?
>  >
>  >
>  >
>  >
>  > "David L. Semans" wrote:
>  >
>  > >  The most important thing is to
>  > > charge high now.  You can always lower prices if you are too
>  > high.  You will
>  > > have lots of trouble raising your rates later.
>  > >
>  > > David L. Semans
>  >
>  > I don't know if I necessarily agree with this statement.
>  > Although this may not
>  > be the correct list to post this Q&A to, I wanted to respond
>  > using my personal
>  > experience.  In theory, you may be correct.  The only problem is
>  > that, for new
>  > businesses, often the only way to gain a solid start is by having a
very
>  > competitive pricing structure.  This usually means simply having
>  > the lowest
>  > price for the same or better quality work.  Once you get a solid
>  > customer base,
>  > you can start gradually raising your prices to meet the industry
>  > norm.  If this
>  > is done gradually, you most often will not see any type of
>  > backlash effect.
>  > Your existing customers will feel as if they got a good deal, and
>  > new ones will
>  > then see you as a *legitimate player* in your field.
>  >
>  > Just my $.02 worth,
>  > Keith D Sellars
>  > WebGraffix
>  > www.webgraffix.com
>  >
>  


You're not old until you no longer enjoy life!
Live it like you don't have a second chance.





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