Minneapolis Web Design, Minneapolis Web Development
& Minneapolis Web Hosting
Part 1 : How are Web Sites Priced?
Web development projects are a complex conglomerate of different areas of expertise. The areas of planning, research, copyrighting, graphic design, and programming all need to combine to form a delicate balance. It is this complexity that makes the process of pricing web sites clear as mud. Below we will outline the four most widely used web design pricing structures and highlight some disadvantages and areas of concern.
Per-Diem Rates
Web design firms will sometimes offer their services on a per-diem, or day rate basis. Per-diem rates are most often accompanied by an estimate of the number of days required to complete a project. In a survey conducted in Minneapolis, Minnesota, per-diem pricing structure was the least used by web design firms, because it is extremely hard to accurately estimate the number of days a project will take. Per-diem rates are an acceptable means of pricing. However, as a client, you should plan ahead and work in a 1-3 day buffer when planning your budget.
Hourly Rates
The most common and accurate method of web design pricing is done on an hourly basis. Hourly rates always come with a document that breaks down the estimated hours for a project with the various rates assigned. Many clients are weary of hourly rates, as they feel it is an open door for being overcharged. When a project is well documented and stays in scope, an estimate based on hourly rates can be extremely accurate. In fact, many Minneapolis web design firms have indicated that hourly rates are most commonly used as it helps to keep projects from falling out of scope. When being billed on an hourly basis, be sure that your project manager has a thorough understanding of your project and that you both agree on the final deliverables.
Page Rates
Another common pricing structure for web design projects is on a per-page basis. While basing a price on quantity is good for many industries, it is not for web design. The actual process of creating individual pages of a web site composes a mere 10-15% of the total project time. The remainder is spent in research, planning, and design. As a result, you are usually seeing the costs for the other 85-90% buried in a page rate. This pricing structure is usually adopted by small firms that cater to start-up companies and low budget projects, because it is easy for the client to understand. This pricing structure should be avoided, as it usually results in the firm maximizing page turnaround instead of customer satisfaction.
Per Project
Many clients who are terrified of the hourly and per-diem price structures will specifically request the project costs be defined and set in stone before the beginning of the project. Most web design firms will avoid this situation if they can, as it leaves them open to financial loss on the project. If you request that a project is priced in this manner, you should expect to pay a small hourly fee to do extensive pre-proposal planning that is required to develop a highly accurate quote. This pricing structure can be favorable to both client and firm, as it is helps to keep projects in scope and on track. You should be careful to not request large changes during the development phase under this pricing structure, as you will have to pay hourly fees for anything that is not defined in the plan.
Now that you know how most Minneapolis web design firms price their projects, you may be asking yourself, "How much can I expect to pay for my project?". Average industry prices in Minneapolis and across the nation will be addressed in the next article in our "Interactive Marketing - Exposed" series.