Before I even talk pricing with a client, I learn their business inside and out. I speak to the owners/executives, the front line employees, the front office staff, etc. I want to get a good feel of not only what the client does, but who they are as individuals. Going out on a limb here, I feel that a design project, should match the “feel” of anyone potential customers of my client will talk to.

In my presentation, I research local competition, national competition of my client. What do their sites look like, what features do they have. I throw this into a pie chart. I use the “features” of the competition’s site to baseline the work needed. I include screen shots of their websites. This is design work, clients are better informed with visual aids.

Factors for pricing:
1) How much work needs to be done, see references above.
2) I produce at least three proposal ideas- using features to increase, decrease bottom line pricing. My rate is always standard, I do not give on my pricing. EVER.
3) Economy/size of the local area. If there is a ton of competition in an area, it will take more features, etc to set them apart. Smaller towns where there is less competition, we may be able to organize the features to maximize the ROI.
4) I do not negotiate on pricing. However, I will use “features” as bargaining chips. There are always chunks of code we have stashed away that we use on a regular basis, like form handlers. If a client wants to negotiate, I may toss in the form handler for “free”. This allows them to feel like they are getting something extra, and yet I have lost no additional time because i already have the script.
5) Educate Educate Educate. In my bid package, I include informational resources with supporting information. For instance, an article on how corporate branding is essential for expanding visibility and increased business.

I have found that the more education you provide the client, the more comfortable they feel with your skillsets and ability to produce the desired result.

Just my two cents.

Since design work is often word of mouth, we frequently are swayed by the complaining client. This was a good post.