Many web designers are reporting that while 2018 is shaping up to be a good year in terms of sales, figures are still down compared to this time last year.
The exact reasons for this are unclear, though it’s almost certainly a combination of factors converging to create these conditions.
One such factor is of course the economy – the confidence of both businesses and consumers is key to the number of sites you sell, and the price at which you can sell them.
With most web design agencies preferring to price solutions based on outcomes and milestones, rather than purely billable hours, it’s often tempting to lower your overall prices when sales are scarce. This is inevitably the wrong thing to do, as lower prices coupled with lower volumes usually equals disaster in the long term.
Avoiding price decreases when sales are low is critical to the long-term success of your business.
The real reason sales may be down this year is that many web design agencies are addressing the symptoms of a decrease in volume rather than the causes. Web design firms who are seeing a fall in sales are suffering from one of two root causes: 1. Lack of leads coming and/or 2. Not converting your leads at a profitable rate.
Allowing either or both points to go unaddressed over a period is what is sending many small design firms to the wall.
The fact is, it doesn’t have to be this way. With some analysis of which of the two above factors is affecting your business, you can identify the root cause of the issue and address it head on.
If you are finding that your business just isn’t converting leads at the same rate it used to, then it’s time to check every part of your sales machine, and ensure it’s completely fit for purpose. Take the time to read through our article: The Three P’s of Selling Websites for some guidance on what could be having a negative impact on your conversions.
Once you are sure everything is in place to maximize your conversions, its time to look at lead generation. While volume is essential in lead generation, you also need to be producing high quality leads.
Web Design Index can help your web design firm connect with more customers. In fact right now, we’re busy connecting businesses with Web Designers they can trust. If you’d like to become one of our suppliers, please visit our Suppliers Page to get started.
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