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10 Replies Last post: Mar 3, 2009 3:50 PM by TheBigEasy

Trouble for Web Design Companies

Nov 11, 2008 10:25 AM

Click to view intechspecial's profile Mogul intechspecial 1,457 posts since
Jan 6, 2008

I just found this website that allows people to create beautifully designed websites in minutes, with a simple and easy to use drag and drop interface.

Looks like were in trouble.

http://www.wix.com/
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Click to view intechspecial's profile Mogul intechspecial 1,457 posts since
Jan 6, 2008
1. Re: Trouble for Web Design Companies Nov 12, 2008 1:27 PM
in response to: intechspecial
This will be the newest competetion for small web design companies that focus on helping small business.

With the changes and advances in web/programming technologies, it won't be long before there are a ton of websites that offers you the small business owner to build a website for next to nothing, with an easy to use interface.

As a small business owner, we must learn to adapt to the industry changes, as well as forsee them to have a chance at success.

Click to view intechspecial's profile Mogul intechspecial 1,457 posts since
Jan 6, 2008
2. Re: Trouble for Web Design Companies Nov 12, 2008 1:32 PM
in response to: intechspecial
To make things more difficult, those that focus their efforts within flash development, and other catchy designs will lose profits with the next generation web allowing anyone with absolutely no knowledge of programming the ability to design a "better then average" website for a small business, for a small monthly fee. Site can and will be updated by the same person.

Suggestion to those in the business of web design for small business:

START FOCUSING YOUR EFFORTS ON MID-SIZE BUSINESS, LARGE BUSINESS, OR CORPORATE ENTITIES. TRY TO FIND OTHER INCOME STREAMS OUTSIDE OF YOU CURRENT MARKET.

Click to view intechspecial's profile Mogul intechspecial 1,457 posts since
Jan 6, 2008
3. Re: Trouble for Web Design Companies Nov 12, 2008 1:36 PM
in response to: intechspecial
If I may be so bold to add a final suggestion.

The internet(obiviously) is moving completey away from a "read only" venue. Interaction is the key for success of any website or busines online.

If your web design business has been successful to this point, and you have the time and money, it is best to try and focus your efforts on buildind on online interactive application, that can enhance or even take over our current way of doing business.

Things are going to change and they are going to change QUICK. Soon their will be little or no need for an HTML web designer for small business.
Click to view ModernGorilla's profile Mogul ModernGorilla 24 posts since
Feb 22, 2008
4. Re: Trouble for Web Design Companies Nov 13, 2008 10:26 AM
in response to: intechspecial
You're right, we're doomed!

Of course, if you look at web design to be the end-all, be-all, that would be correct. For me it's always just been one component of advertising a small business (and usually the easiest part).
Click to view intechspecial's profile Mogul intechspecial 1,457 posts since
Jan 6, 2008
5. Re: Trouble for Web Design Companies Nov 14, 2008 12:32 AM
in response to: ModernGorilla
Yes Web Design is easy, I agree.

It is a difficult market to break into would you not agree?
Click to view Iwrite's profile Mogul Iwrite 1,101 posts since
Dec 29, 2007
6. Re: Trouble for Web Design Companies Nov 14, 2008 2:54 AM
in response to: ModernGorilla
I think you hit on the real problem, a lot of small business owners think of web design as the "end all be all." They ignore or don't understand the need to put forth a real message that communicates a benefit for customers. I mean look at the majority of post here that rely on nothing but offering a cheaper price. Instead they could talk about insight and understanding markets, how to reach customers and drive traffic. There is no reason other than price for doing business with them.

What good is a website that people are not actively seeking? And give people a reason to stay on your site! The longer they stay, the more they learn about you and your product the more they tend to buy. And the more often they will return. But who wants return customers?
Click to view intechspecial's profile Mogul intechspecial 1,457 posts since
Jan 6, 2008
7. Re: Trouble for Web Design Companies Nov 14, 2008 8:37 AM
in response to: Iwrite

You bring an an extremely valid point I-Right.

Web design is not the end all and unfortunately to many people get the idea that 'if I have a website, I have a profit", and this sadly is not the case.

A website should be used as your online identity, as a way to validate that you are legitimate. I mean what legitimate business DOES NOT have a website? Could you imagine Bank of America trying to do business without one? What about Joe The Plumber? What type of exposure is he missing?

So their must be an appropriate mix for the two.

The bigger problem is that any valid USA company has the majority of competetion based in India and China.

So imagine if you need a website developed, and the response is "we are a USA based company, here are our benefits". (No mention of price but rates are an average of $90/hour for a top end company)
Orrrrrrrrrr you receive a response like this "we are an India based company, here are our benefits, and we charge $18/hour".(This is a top end company that has more work then the usa based company.


Suddenly, to add to this already cuthroat industry, comes technologies at a much higher level of proficiency then previously that allows any small business owner the ability to easily create a website with absolutely no HTML knowledge, with an easy to use drag and drop interface.

I-Right, if you do not mind me asking, I did not see a website in your profile, do you mind sharing the URL of your site?

Click to view intechspecial's profile Mogul intechspecial 1,457 posts since
Jan 6, 2008
8. Re: Trouble for Web Design Companies Nov 14, 2008 8:49 AM
in response to: Iwrite
To add insult to injury, part of developing a professional website includes great Search Engine Optimization.

I recently heard of an offer from a USA based company that offers SEO at the rate of $149/per month. This company is one of the best in the country, and is currently losing profits and business, and should be refocusing their marketing efforts. If they continue on their current plan, they will fail on all levels eventually.

Why might they fail you ask?

I am glad you asked that question.

They will fail because they are stubborninly and blatelingly are unresponsive to the obvious, and India based company charges the same services, with twice as many features for $29/hour.

Well of course not all USA based companies care to do business with India based company's. So you locate a USA based company to do the work. You will look for a company that offers the best quality and at an appropriate rate. So you do a search for SEO in google, and the first two companies that come happen to be USA based. The first company offers a rate of $149 per month(but of course this rate is hidden until you are sold on the service). The second company offers a rate of $59 per hour, openly displays their rates and offers twice as many services as the first.(They are oustourcing to an India based company unbeknown to you the American based company).
Click to view intechspecial's profile Mogul intechspecial 1,457 posts since
Jan 6, 2008
9. Re: Trouble for Web Design Companies Nov 14, 2008 9:05 AM
in response to: intechspecial

To place the final stamp of approval on my debate, I will add the following:

When have you recently shopped at Wal-Mart, K-mart, of CVS Pharmacy? Did you think about where the plastic they sale comes from?


Have you recently opened the hood of your car? Do you understand that Ford purchases a good percentage of what you see from China? The car might be build in America, but all the parts are made in China.


Do you really understand the cost of any product that is completely American made? Imagine paying $79,000 for a used 2002 Ford Bronco(completely American made including all parts). It runs like a champ, as long as you keep a case of oil in the trunk.

So as a legitimate "web design company" it is not as simple to say "I offer great services that really work".

Hence the need to either drop your prices or find a creative way to do business.

As a final and conclusive argument, I will add this:

Go to http://www.freeits.net and you will find a designer that is an American Based Disabled Volunteer Web Developer.

As I speak I happened to look at the bottom of my coffee mug and it did not say "great quality product", it simply said "Made In China"

Wake up America, as I need some sleep, and will help you in your efforts(or lack their of) later.

Click to view Iwrite's profile Mogul Iwrite 1,101 posts since
Dec 29, 2007
10. Re: Trouble for Web Design Companies Nov 14, 2008 10:13 AM
in response to: intechspecial
Intech,

No, I don't have a website up. And I am a legitimate company. I made a small piece of change this year, enough to live off. I think the importance of a company's web presence is depended on the type of business you are talking about.

Let's look at your burger example for instance - how many times have you gotten on the web to search for a burger? How important is it to customers of a burger place that the business have a website? Are people going to order burgers over the web? A website for a burger place can help build customer loyalty and encourage trail but is a website as important as great signage and a strong print campaign to the owner of a burger place? The honest answer is no. But still some of us would push having a website as a necessity for doing business when it isn't.

Now back to me. I believe in having a website for my agency, I am having trouble with what I want the website to do. I don't want the traditional show and tell website that most advertising agencies have where they show their work, the people and their cool office space. I want and am trying to build a website that engages folks about advertising, that informs and educates while allowing people to get to know us. I admit it is taking longer than I would like but the finished website will be closer to what I believe a website should be - more than a template filled with samples of work and biographies. I want it to be a conversation on advertising. The hard part is pulling it off well, but that is also the most important part.

I don't think there is going to be trouble for web design companies that understand what it is that they do, and find a clear way to communicate the real benefit of their services. It isn't about pretty designs or SEO strong designs, it is about developing a web presence that invites people in, holds their attention and gives them a reason to buy a product or service. If you can tell business owners that you can do that, then web design companies should not be in trouble.

And now to the small business owners who have or are thinking about having a website, a simple question: If you have a physical presence for your business off-line and customers were coming in and out of it to do business, how much time and money would you invest in designing and decorating your business to make a great impression on customers when they come into your business? And you only want to spend how much time and money to design and build you online business? Just a thought.

Iwrite
Click to view Iwrite's profile Mogul Iwrite 1,101 posts since
Dec 29, 2007
11. Re: Trouble for Web Design Companies Nov 14, 2008 10:16 AM
in response to: Iwrite
Please excuse the typos!! "Trail" should be "trial." I need another cup of coffee!
Click to view ModernGorilla's profile Mogul ModernGorilla 24 posts since
Feb 22, 2008
12. Re: Trouble for Web Design Companies Nov 14, 2008 10:25 AM
in response to: intechspecial
Wow, it's pretty black or white in here.

Shades of gray really; a local web designer/developer who can leverage their production overseas is going to do very well. If I can communicate effectively and keep my clients up to date I've done my job.. who cares where the work actually gets done?
Click to view Iwrite's profile Mogul Iwrite 1,101 posts since
Dec 29, 2007
13. Re: Trouble for Web Design Companies Nov 14, 2008 11:17 AM
in response to: ModernGorilla
I didn't see my response as black or white, more off blue with a hint of yellow splashed in it. (that be my attempt at humor)

I totally missed the comment about where sites are made. I know for a fact that Pepsi and it's brands, Pizza Hut, Coke and its brands, McDonald's, Domino's, and many of the P&G brands are not outsourcing. Dell, just paid billions to build a US advertising agency to handle all of the work including interactive. For me, it is about how you like to work. I enjoy sitting with a designer and an art director and bouncing things off of each other in person. I don't mind working with someone over long distance but I prefer to be in the same location. But that is a personal choice. Different strokes for different folks.
Click to view ModernGorilla's profile Mogul ModernGorilla 24 posts since
Feb 22, 2008
14. Re: Trouble for Web Design Companies Nov 14, 2008 11:36 AM
in response to: Iwrite
I wasn't referring to your response, more or less just commenting on how web design companies are perceived to be in trouble because of 'cheap labor' overseas.

As you mentioned, many small/local businesses want to sit down with their web designer/marketer and bounce ideas around- that's a natural process. I'm talking about my own business model which provides this.. but also outsources the grunt work whenever possible.
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