Budget Brand

[rivercottage]

Hello again lovely lovely people

Im thinking of starting a smaller business, an offshoot of what I do now, but a budget brand

Simply providing low cost websites for a fixed price, no bells and whistles, and just simply distribute a postcard and advertise as such

does this make sense? - more an experiment really to appeal to the lower end, without sacrificing the name of my current business? or is my name my asset?

any rambles most appreciated :-)

Thank you

:-)
RiverCottage

[Nazreen]

Welcome back RiverCottage.

I do think that this is a great idea especially today that people are focusing more on saving than spending. If it's an offshoot of your current business, wouldn't it be much easier to promote your smaller business there? I would be guessing that your current business is already recognized so why start from scratch again? It would be better to be just introducing a new product in your current business, which in this case is low-cost websites.

Your current customers who are tight on their budget and cannot afford to hire your current services might even consider buying from you again and I think that would be a good thing.

[rivercottage]

Hello!

Thank you for your speedy reply, I have been working through this in my brain all day.

It would be better to keep my current brand, but worried I may come across as 'cheap', so loose some of the bigger boys?

Its hard work really isnt it, not being too expensive, whilst not looking cheap...

I get a niggly feeling that you are right with this.

im just eternaly worried about loosing the reputation I have built for quality by advertising cheap websites!

Many thanks!

[Fergal]

I'm not sure that offering a lower cost service would damage your brand. You will simply be offering two different types of service, a basic one and a more advanced one. Some business models even provide a free service and offer a more advanced paid service.

You would simply be telling your larger customers that you can offer them an off-the-shelf website for one price or a much more customised and fully-featured website at a different price.

An additional advantage you might get from this business model is that some of your lower cost customers will eventually outgrow their basic websites and come to you when they want to upgrade.

There is an Irish company called Omniserve (http://www.omniserve.ie/) who do an excellent job at selling and marketing basic websites at a relatively low cost. It might be worth your while having a look at their website to get some ideas. You can see the type of clients they are getting by having a look at their blog (http://www.omniserve.ie/blog/index.php).

You seem quite intent on sending out postcards to test their marketing effectiveness. Just do it and then you will know.

Good luck with everything and please keep us updated with how you get on.

[Kay]

I think the advice you've had is spot on, rivercottage. Expand out from your already recognisable name as Nazreen mentioned and also offer a two-tier (or more) service like Fergal suggested. The Omniserve site looks good and is a great example.

If I were you I'd be advertising on the web more than aiming for the local market with postcards. Personally speaking I toss them right in the bin and don't even read them. You could always advertise in the online versions of local business directories or yellow pages.

[scifi]

Hello Rivercottage!!
I will suggest you in the first place to analyze whether you have current resources; more than sufficient to get diverted into another (may be new or an offshoot ..basically expansion....!!!) business without damaging the current one,,,,,It is necessary to analyze the internal situation first rather than seeking customer response & then acting accordingly, because it can be dangerous step for your current business's both stability & operation too...

[Swastik]

Hello again lovely lovely people

Im thinking of starting a smaller business, an offshoot of what I do now, but a budget brand

Simply providing low cost websites for a fixed price, no bells and whistles, and just simply distribute a postcard and advertise as such

does this make sense? - more an experiment really to appeal to the lower end, without sacrificing the name of my current business? or is my name my asset?

any rambles most appreciated :-)

Thank you

:-)
RiverCottage

First of all, I think careful analysis is required. If you think you can put your efforts and time into this, go for it.

This will increase your market - You'll be providing two levels of services and will thus targeting a wider market.

This might be somewhat off-topic, but what you're doing is taking orders for websites, and delivering the required to the client, right?

If so, you might consider "website flipping". Not too different, only thing is that you make websites based on your own ideas, and then sell it. :)

Best of luck.

[omniserve]

Hello,

First hello to all as this is our first posting on this forum.

Rivercottage, You are right. There is a balance in terms of what you charge and what people expect and how 'cheap' is determined/perceived and given the economic situation, people are now looking much more at value in where and what they spend their money on. Getting someone a website isn't enough anymore. The website needs to do the business for them. Whereas before small business would be happy with you telling them a thousand people visited their website that doesn't cut it anymore. What is of value is the real sales leads, enquiries etc. This is the direction now for web design companies. Those who offer the services that make that happen (enquiries, sales) is whats important along with a competitive price.

I'm not sure where you are based but we do offer a sort of re-sell service that might be of interest to you where you get to make money but don't have any of the issues associated with what you are trying to do. You also benefit from our systems and expertise who helps you in the long run.

You can contact us offline or via a PM if you or anyone else is interested.

Regards
Alan

Note: Fergal - thanks for the positive feedback above.

[rivercottage]

Thank you once more for all the wonderful things to think about!

I agree - people are mostly after sales rather than a website, so maybe should aim the advertising in that direction.

Still not quite decided on starting the new brand / running as a cheaper product in my current business.

- It wont cost me any more to start the new business, as I can design / host the site etc myself, and advertising would be spent on one or the other business.

I think ill have a jolly good think over christmas with a glass of wine :-)

Thank you again lovely people!

[Nazreen]

You're very much welcome Rivercottage. Glad to be of help.

Do remember that you're still the one who should know your business than others. At the same time, your business and your money are in your own best interest so whatever we advise, you'll still be the one who decides.

Good luck and let us know any progress on your business. :)

[rivercottage]

Oh golly yes Ill keep you guys posted on whatever I do - Could of course do both and see what works best actually!

Its so hard to get advice on business matters, sometimes a lovely bit of outside opinion is just what the doctor ordered - I often get caught into do what I would like to do, rather than what would be best if you catch my ramble!

:-)
RiverCottage

[Fergal]

Thanks for the feedback RiverCottage. Please do consider offering your advice and opinions to others here on Business Advice Forum. You are in business yourself and your knowledge, skills and opinions will be valuable to others.

[jams002]

what kind of brand of this?

[Fergal]

Hi Jams and welcome to Business Advice Forum. RiverCottage provides web design services, does that answer your question?