Post: #1

I run an agency and we keep our minimum at $1500 and cringe when we take people for our budget minimum.

We probably get at least 3-4 leads per month that want our services, but can only spend between $750 and $1000.

I simply refuse to take clients for less than that if they're directly associated with our firm's brand.

That being said, I could easily setup a side operation under a separate LLC w/DBA that handles lower budget clients. All work would be handled by employees and require minimal oversight, if any.

The main issue with clients at that budget is that they tend to call and feel like they're entitled to consulting, which they're not. I'd probably make them sign at 3 or 6 month agreement, but I'm not sure. Seems like cash left on the table that we're sending to weaker firms who cater to those types.

Anyone view this as unethical?

Post: #2

Toyota owns Toyota and Lexus.

NOT serving different parts of your market IS UNETHICAL.

If you don't serve them, how do you guarantee your employees have work and salaries?

And think about the children!

WIA

Post: #3

Classic market segmentation. All the big boys do it. At my company we sell the same material to one customer at $1/kg and another at $100/kg. Just be upfront about what services you're willing to offer at the lower price point and drop clients if they are too demanding.

Post: #4

No problem with that, just make sure there is enough differentiation between the cheaper services and your current firm, you don't your current clients switching to the cheaper services. Do you own the company you are currently working at?

Post: #5

As the others said, perfectly ethical. Just set them up as distinct, separate entities. So much so that ideally the client doesn't even know you are associated. I remember in grade 9 they talked about this, watched a show about a soap company, they had the exact same soap and were trying to figure out how to capture the entire market. So they had cheapo soap in super basic packaging, regular soap, then fancy soap in a nice bag. But it was all the same soap.

Here you can do the same thing. Just make sure the clients understand from the get go that it is different companies, serving different purposes. The situation you don't want to get into, is these people thinking they are getting a $1500 product (free consulting etc) for only $750.

The other danger is with cheap clients in general. I don't know anything about the industry, so I don't know where $1500 vs $750 comes in on the spectrum, but for clients who are trying to get things for the absolute cheapest, often nothing will be good enough, they're the people will do anything for a buck, the restaurant goers who say their steak is over cooked, but eat the whole thing and demand it be free. They look for the cheapest price, but expect equal quality.

Post: #6

What's unethical about asking for fair compensation for your time and expertise?

Taking on small fries is always a pain in the ass. It's totally ironic that the big clients who pay you what you're worth don't piss and moan and make unreasonable demands on your time and energies (in general). Whereas the smaller clients want to nickle and dime you and flood your inbox with questions that adds up to hours of free consulting.

If you make them sign a contract and they understand the terms and the nature of the deal, it's THEIR choice. Nothing unethical about offering your services under certain conditions if a client is aware and at will to make a yes or no decision.

Post: #7

Modifying your current services/policies to also suit other people is unethical towards the customers you already have. Ignoring other potential customers is unethical towards those people. Whatever you do, someone will bitch and moan. Do whatever you feel is right, and fuck anybody who disagrees.