I am doing a freelance job for a Web SEO Co. who has a client that wants to have an e-commerce site. I have been tasked with selecting a solution. I recommended a Hosted 3rd party provider that offers all the bells & whistles for $24.95 month. A great deal, I thought. Especially since this is a one-time e-commerce offering exclusively for this client. She (the Web SEO Owner) responded to me with the following question:
"To translate monthly cost into upfront cost, I would use a factor of 100. So a monthly fee of $24.99 would be the same as an upfront cost of $2499.00. $99.99/month would be about $10K. With that, how competitive do you think this product is?"
I may not be the sharpest tack in the box when it comes to business, but I need to know how to answer this question. Is she being sarcastic? What exactly is she asking? These numbers & factors mean little to me other than the $24.95 month. Can anyone explain or help me with this?