This is a question that is often asked by businesses that are trying to price out companies for web design and development. Before we get started I want to note that there is a difference between website design, website development, and web marketing.
The differences are listed below:
Website Design
creating the overall layout, design/look and feel of a website. Developing the flow of how a page will look or where the content of the site will be placed.
Website Development
Taking the website design and bringing it to life via HTML/CSS and/or other web scripting/programming languages. Also, website development is the process of adding additional functionality to an existing website such as eCommerce, content management systems, and etc...
Web Marketing
taking the designed and developed website and promoting it via the web. Using outlets such as social media, Search Engine Optimization (SEO), Pay Per Click, and etc...
These services are usually intertwined when a company or person is explaining that they need web work done. With that out of the way let's go into the reasons why web companies/freelancers charge what they charge and how they come up with their price.
How is price determined?
There are many aspects to consider when pricing out a project, but the main one is time. A freelancer/web firm will listen to you (the prospective client) explain the website of your dreams and from there they will base the price around what was discussed. Some things that will increase the price are, the time frame in which the project is to be completed, support, consultation, or detouring from the original scope of work. Other factors that go into creating a price quote for web services are the amount of resources, experience, and knowledge of the professional(s). The more value that can be offered the higher the price quote will be. For instance freelancers are often only equipped to perform one or two services while a team of web and it professionals are prepared to deliver in all areas.How will I be billed?
Common way of billing:50% upfront,
20% on first set of deliverables,
20% on second set of deliverables and the final
10% on project completion.
Another way is to be billed hourly. Being billed hourly seems to be the less popular way when getting a website developed. Most of the time billing hourly comes into play when providing advice or after a project runs longer than expected. Monthly fees usually occur with web hosting packages or if you agree to a maintenance plan.
What does the standard website package come with?
This will be based on what you have explained to the professional and what they can offer you. If you express that you need a website redesign you will get website design. If you say that you need to rank higher on Google or Yahoo then web marketing will be the primary focus.The first question I get from prospective clients is "how much will it cost for you to design a website for me?"
It's easy to understand why this is the most prevalent question. It's not like buying a car, or hiring a landscaper to cut your grass once a week; in these examples you can surf the web to find prices or ask your neighbors what they spent. A majority of web design companies will usually answer with this question by providing a range, e.g., "You can expect to pay anywhere from $1,000 to $10,000 depending on your needs." Sometimes they'll follow this up with "We can design a website to fit your budget." The latter response often scares a perspective client; they fear that if s/he provides a figure s/he may end up overpaying. However, if you are asking how much a website will cost, you are asking the wrong question. When I get asked this question, my response is always the same, "How much value do you feel your website will bring to your business." To determine how much a website will cost, look at what you anticipate to gain by having a website. How much revenue do you anticipate the website will generate in new business?
On the contrary, what if want to launch an eCommerce website where you are hoping to sell $200,000 of inventory a year? Well if you think spending $2,500 for an eCommerce website will yield $200k in annual revenue, then you may want to rethink the realities of situation. Think about this logically - if investing $2,500 could turn into $200k in revenue, don't you think everyone would be doing it?
The other pitfall people tend to fall into when trying to figure out how much a website will cost is to ask people they know how much they spent for their website. The problem is they don't take into account the type of website the other people have as well as the purpose of the website.
If you ask someone how much they spent and they tell you $400, you may want to dig a little deeper:
Is this other person's website literally just there to provide basic contact information and directions to the office?
How long ago was the website developed?
Does s/he feel the website has benefited him/her?
It's all too common for someone to tell me that s/he spent a few hundred dollars on a website and feel like it was a waste because the website never seemed to yield any business. This goes back to identifying the potential value of the website.Websites are a great, low cost way to market your small business. But a website, like most marketing, is not a free lunch!
You'll encounter an initial web design cost for creating and programming your website, a monthly web hosting fee, and possibly maintenance costs. Ouch! You're probably thinking, "a website doesn't sound low cost."Is website design cost prohibitive for someone just starting their business? I run my small business from home and don't have a big budget, how much does web design cost?
Website design costs, much like buying a car, vary depending on the features you need.Many web design firms charge upwards of $2,500 for a basic, static website composed of a few pages.
Commonly referred to as a "brochure" website because of their similarity to a printed company brochure, these websites are the perfect starter website for a small business. Brochure-style websites are an excellent way to keep your website design cost low, while getting your business online. Added features like a Blog or a Content Management System will pile on your website design costs.Send Us Your Request:
