By Peter Bell

Selling in a Budget Based Purchasing Environment

Posted At : November 11, 2008 11:30 AM | Posted By : Peter Bell
Related Categories: Business
In the last post, I talked about the idea that most website development purchases are budget based. The question then, is what are the implications of this? . . .

Perhaps the biggest implication is that no matter how cheaply you may be able to build an app, it's important not to change your price point too much from the average. Also, if you do compete at least partially on price, you need a really good story on quality to make it clear that you can provide a better solution.

Personally, I try to price projects that we sell retail in the same ballpark as other developers, but to focus on other things such as the speed and quality of the applications as using regular pricing gives me plenty of margin to build much better apps and I'm able to deliver them in a fraction of the time than if I had to build the apps completely by hand.

I also find that wholesale development is a really good fit as we can allow web shops to deliver apps more cheaply, quickly and consistently. we make a good profit, and they still make most of the money for the project.

What do you see the implications of budget based pricing to be for your business?

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I have built a number of these for vendors of fortune 500 companies. They make sense in large organizations and perhaps the most common aspect of these systems was the use of cXML. (No I did not say cfXML for community members who think that might have been a typo.)
# Posted By John Farrar | 11/11/08 8:20 PM
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