local rates versus net rates - or, the great catch 22

The internet has brought many aspects of equalization to the table over the years. As consumers, we now have ultimate selection and, if you are willing to pay for shipping, en almost unlimited competitive market catering to our every whim. As business owners, we can find information, supplies, and support much easier than before (and often for free).

However, there is still one aspect of the globalization market that drives me up a wall. Consumers want the best of both worlds. They want the convenience of local delivery and a face-to-face experience with those they choose to do business with. However, they also want the competitive rates that one would expect from internet-owned businesses. As service providers, we are often left in something of a "catch 22" position when trying to compete and satisfy.

For example, as a web designer, I am acutely aware that the local market is generally ignorant of standard internet rates. As such, they may or may not have established standard rates in their mind as to what they would expect to be charged. Others may have the opposite pre-assessment - that web services, as mysterious as they are to non-tech savvy individuals, are very expensive and therefore cost-prohibitive to local business. As a result, a designer may find themselves establishing two sets of rate charts, without having ever planned such a disservice to himself.

Because the internet is a global market, the cost of services by industry leaders is often untouchable to most small business owners, but that doesn't keep the more amateur web businesses from trying to emulate their same rate quotes. In some cases, they shoot themselves in the foot. In other cases, they get away with it. I personally believe in quoting based on how competent and experienced I feel about something, regardless of whether I am working with a local organization or a distant contact from the web. It is difficult, though, because physical interfacing is often more time consuming, and there is more presentation involved, which means more cost.

So sometimes I may be tempted to add a bit of "cushioning" to the bid to cover that overage. Problem is - this may make your bid less competitive, and then your potential client begins comparing you to other (non-local) online firms, who may do the same service for the same price (or less). This may anger them, or present a feeling of betrayal, as if being "local" guarantees the best price (or somehow points to you providing them with a "deal" because they're technically your neighbors). You obviously can't reason with them (i.e. "sorry I'm charging you more, but every time we meet you blather on at the end of the meeting about some rubbish that has nothing to do with business, and you're taking time away from my potential productivity for that day"). Strangely enough, it is sometimes faster to explain something over the phone or via email than face-to-face. Either that, or the client is too meek to admit in person that they don't get it, and ask for further explanation.

It's all very difficult to assess, and as much as I would like to treat all of my clients, whether local or distant, with the same service-to-price ratio, I am finding that this doesn't always work. Many local clients still don't grasp the concept of paying for my time at a meeting, or paying for ideas that I come up with. Some feel that prototypes and mock-ups don't warrant reimbursement - only the ones that they like. I guess that it all has to do with preconceptions, misunderstandings, and their discounting of anything that can't be tangibly seen or held in their hands (like ideas, brainstorming, research, etc).

So, as web workers who choose to do business with both the non-geek non-web types (who are unaware of web work standards) as well as the latest Web 2.0 firms (who know *everything* after all), what approach do we take? Do we drag the laymen kicking and screaming into our tangled web (pun intended), or do we continue to hold their hand and hope that by the end of the experience they don't still feel as though we are ripping them for charging them so much (when anyone who knows the standard rates would be grateful for our competitive pricing)? Or do we, as I have sometimes done, invite them to call around and use "The Google" and hope that they find the prices that makes ours look like a steal? When all is said and done, giving someone a deal who may never appreciate it, leaves me feeling a bit sore.