When starting my business and developing my website, one of the hardest decisions was whether I should have packages, or an hourly rate or both. It seemed, at first, that the best way to go was to have packages along with an hourly rate. You see, in my business I want to be transparent. I want to make sure my customers know what they are getting so there are no surprises. I do not know about you, but if I come across a website that has no pricing, or an hourly rate, I will pass them by. To me, if they don’t list their fee(s) then they are probably too expensive, or they are wanting me to contact them so they can upsell me things I do not need or want. Right or wrong, that is how I feel and with my business I am there to help my clients, not try to get the most money out of them. Do not get me wrong, there are places where package deals work well, but they definitely are not one size fits all kind of thing.
So after coming up with various packages that I was going to put on my website, I realized something. It puts the client, as well as me, in a box. It kills the creativity. You see for the client, if they go with a package deal, sure they know what they are going to pay, but they are limited to that package. Whether the client needs everything in that package or not, that is what they are going to get for that amount.
Now packages may look reasonable and affordable and some may even use all the items that come with that package. However, when you compare it with an hourly rate, you really see the disadvantage of package deals.
For example, a package deal could include several items for, let say, $200. What the customer doesn’t know is that package deal could only be 45 minutes to an hours worth of time. Yet, with an hourly rate, after an initial consultation with the customer, for that same $200, you would get 2 hours worth of time, and get the creativity and items you really need and want for your business. Also, with an hourly rate the business owner has the discretion to discount that rate if they want, you may get more revisions included in that rate then if you went with a packaged rate.
Whether you are looking for services or trying to plan your pricing structure for consumers, make sure you make a decision that does not cut yourself short and provides your clients with the best possible options.
Geoff Cummings is President | Founder of On the Level Marketing & Consulting, LLC. Successfully helping businesses with all their marketing needs by branding their businesses and keeping their marketing simple and straightforward. On the Level Marketing & Consulting, LLC Creative|Trustworthy|Hassle-Free.
www.geoffc1.sg-host.com, Twitter: @OTLmarketing, Instagram: otlmarketing