That`s what I was wondering too... My theory is: If I you sell at $250.00 and your office lease is for $1,000.00 that means you have to whip out 4 web sites a month to make ends meet. If you have Employee`s you`re looking into at least 8 to 16 customers per month just to meet Payroll and other expenses such as: Light, Phone, water, and so forth... I don`t think that at $250.00 you can put alot of effort into a web site, since you would be in a rush trying to make money.
On the other hand, if you charge 1.5K to 7K like myself, Even if my lease is $1K, I still have a $500.00 profit. If I sell at 7K, well I`m pretty sure it doesn`t take a genious to figure that out... and at the same time, I can put more effort into a project, because I don`t have to worry about pay roll and utilities... and I can still profit 1K to 2K if I sell at the higher end... This is just the way I do business.... Less projects at a higher price, less stress to make ends meet...
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!