No matter where you live, it always makes sense to spend less money. When the Sunday newspaper comes in, you always look at the ads to see what store has the best prices. So why would you want to pay more for your web design? Since web design is not restricted to a physical store, you are opened up to a whole new market, the national market. This lack of boundaries changes the way you have to think of sales and purchases.
It is a well known fact that large cities have a higher standard of living, and therefore a higher cost of living. Web design companies based in those cities will base their prices on what their cost of living is, because they need enough money to thrive, but as a consumer who desires the lowest prices, you are driven away from such exorbitant prices. The lower the prices you see, the more leery you are of the quality of the work. Of course you want a five star website, but you just can't afford that Los Angeles or New York web design company. So where else can you go? How about a top web design company that's just as good as those in New York and Los Angeles, but in an area with a lower cost of living, and therefore, lower prices for you.
The average US salary, according to the US Census Bureau, is around $55,000. Let's say you live in Richmond, VA, making $55,00, and were looking to move. Here's what a comparable salary would look like if you moved move to some of those larger cities:
Los Angeles, CA: $76,838
New York, NY: $82,198
Fort Lauderdale, FL: $63,863
As you can see, all three of these cities have much higher standards of living, and probably higher prices on web design packages. So if Richmond, Fort Lauderdale, New York, and Los Angeles can all offer the same web design services, which one would a smart shopper choose? They would pick the lest expensive one, in Richmond. Similarly here's what a $10,000 web design package in Richmond would look in those same cities:
Los Angeles, CA: $13,970
New York, NY: $14,945
Fort Lauderdale, FL: $11,611
So why pay $5,000 more when you could be getting the exact same package?
These higher prices come from artificial inflation just from where companies are located. Take for example the cost of housing differences:
Los Angeles, CA: 129% more than Richmond
New York, NY: 114% more than Richmond
Fort Lauderdale, FL: 53% more than Richmond
Housing, taxes, utilities; all of these factors and more influence the standards of living from area to area. Richmond just happens to be in one of the lower cost of living areas, which allows for companies to price their products lower than their competitors. These products are normally very similar, if not exactly the same as the more expensive ones in other cities. When presented with two similar products, and one is less expensive, the wise consumer should always pick the least expensive one.
(Salaries and percentages derived from CNNmoney.com)
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