November 18th, 2010, 09:34 AM
How do you come up with your rates for developing a site?
I've been developing websites for a while now, but never really had a huge project that would take a while. So I normally charge per website, based on how much I think it's worth and so on..But I want to know how you guys come up with your rates when offering your services to clients. Do you do it by website, by page, hourly rates..? Just trying to get some ideas so I know how to go about charging my customers instead of by website. And even by website, I'm not sure how to come up with a price, I kind of just guess how long it's gonna take me and then factor in what I need to make and that's usually my price.
Say for instance someone told you they wanted a website designed with the same quality as this one, maleextraDOTcom, (please change DOT to ".") how would you go about coming up with the prices? With about 6 different pages altogether, plus a checkout system. Say they wanted updates on it to increase conversions down the road, lots or promotional banners for advertising and other marketing designs as well..
(that is not an affiliate link above, and am no way affiliated with that site, just would like some help about my topic only)
Thanks for any help!
November 18th, 2010, 07:31 PM
Note that URL is LSFW
For programming almost always hourly. By the "page" and by the "site" are risky because both pages and sites come in very very different sizes. Figure out how long you think it will take, multiple by 2, then multiple by your hourly rate to create an estimate.
You don't have to use that estimate as a fixed price though. Sign an agreement with them saying that they will pay for the actual amount of time it takes to make the site, regardless of whether it is less or more than your estimate. If it ends up being more than your estimate, get them to approve the additional time before you spend it. If they don't approve it, then just hand over the code you've written so far even if it is incomplete.
That site has a lot more than 6 pages
Then charge them your hourly rate for whatever it is they want.
December 31st, 2010, 12:15 PM
if you aren't confident in your estimation skills, I would charge hourly. This is more of a guarantee that you will get paid fairly...I've found it much more profitable to charge by the project.
January 14th, 2011, 07:21 PM
What is a fair hourly rate for just a basic website. Something like 6 pages, logo design, contact page, about us, location, home, maybe some products they sell. Say like 10 with a description?
I mean, it might take one day at the most.
January 15th, 2011, 12:06 AM
January 16th, 2011, 07:50 AM
From one of your replies in the links you provided, you said
Unfortunately discussing specific hourly rates is not legal in the US, so I must delete those posts.
I've never heard of that... is it a rule on this board or a legal law?
January 16th, 2011, 06:05 PM
January 21st, 2011, 12:06 PM
I really think that Your mis interprating the law. Your refering to price fixing. The spirit of the law is to keep major corperations from fixing price. If its illegal to discuss price in this manner how are we to explain uniouns. Thats one of those gray areas of the law that it is better to not even get into a discussion about becasue the law cant even decide whats right and whats wrong. As we are such a small cross section of the entire development community I would be suprised if talking how we charge and what we charge would be anti trust.
If it was me trying to put together a quoute I would look at how much I had invested in licenses software hard ware etc etc and start at that point.
Im taking a note from construction. Time + materials + labor ( a helper if your hiring one) + tools = cost. If its a active construction site where there are other workers on hand then it costs more. If i have hand tools that cost me 400$ and I will be using it on a job like that. Then im starting at 400$. Lucky thing for you is no one will be stealing your smaller stuff off your job. To qualify this keep in mind there are 2 types of tools long term high cost ones and short term low cost. For example a water saw may cost 2,000$. now that saw will last for between 5 & 7 Years. How much of that 2,000 dollar investment is the job going to burn up. Then there are 2 types of jobs high risk for theft. low risk for theft. Always assume your next job will destroy your tools or you will be robbed in some fashion. If that saw payed for its self 4 times over I can charge 25% of its cost as a loss coverage. Making my work cost less getting me more jobs. If it is brand new im looking to cover its price right up front. If the job is to small to pay for the water saw, if it goes missing or breaks than I am not going to bring that saw to the party. ill bring my hand cutter or my old saw or I wont take the job. 400+(.25*2000)=900 If the job is less than that I may pass it over or use less expensive tools.
Your in a diffrent boat. Assuming you computer has payed for its self and assuming your software has payed for its self you now need to figure its total original cost. Take 25% of that thats your starting fee just to do any job. Then add your time x2. To figure my time I take my weekly expenses thats my full budget from luxurys to food to nest egg for retirment for the year then divide by 52. Your not using a helper I assume and you dont have materials ( unless your using some sort of software, book etc that is new for this job if thats the case make them pay for it). Finaly What kinda job is it. Is there alot of heavy lifting and other hard core codeing or is it simple. If im doing a marble shower that takes real finess as aposed to setting a simple floor we are talking a diffrent price. if its on the 5th floor and all my materials go up the stairs its more money. May be the same squar feet same amount of time but its going to cost more as not everyone can do it.
Qualify every thing you do as having a value skill equipment etc figure out what your value is and then your price will follow.
Also Always charge higher for learning jobs where your picking up new skill sets along the way. If you happen to not understand some thing or hit a road block in edjucation you may have to even pay some one to bail you out.
January 21st, 2011, 11:45 PM
IGADA, that's an interesting perspective on this.
In programming, tools don't wear out very often, but you do have to upgrade software and hardware from time to time.
January 25th, 2011, 01:10 AM
my tools dont ware out very often either but when one does if your not budgeting for it it can be a disaster. Part of being a responsible buisness is passing enough of the cost of replacment on to your customer. What happens if your customer insistes on using that new CMS that his friend swears by. Oops the publisher was iligitimate you loose everything. Not likley but hey might as well cover your rear end.
January 28th, 2011, 03:23 PM
One other consideration is whether you're going to be designing from scratch or using a CMS and a purchased template. You're probably looking at a third the time if going the CMS route.
In the end, once you cut your teeth on a few jobs, you'll get a better idea on how much you want to charge. Also, develop a watertight proposal. I'd been bitten before by using the 50/50 rule (50% deposit, 50% on completion). If the client drags their feet in getting content, images, etc. to you, it could take weeks to complete. Depending on the size and scope of the site, I usually allow a net thirty, and then an hourly charge after that. It compels them to do their due diligence and gets you paid quicker.
March 4th, 2011, 08:37 AM
Let me start by saying Kravvitz is somewhat wrong about location pricing and somewhat right. I know people in Minneapolis and South Dakota who charge more then some people who in California who aren't as experienced.
It's based on experience.
You can charge based on the clients budget and just cap how much work, time, hours or days you'll give them. You can charge on retainer (monthly). Or even based on any other given factor you want. It's up to you and what a client is willing to pay you. Frankly you can be a hack and be a great sales person and make more then a great designer. I'm not saying that is a good thing, just saying being charismatic can help. Read up on sales and marketing skills. Find your niche. Go to networking events. Know your craft.
So what level do you think you are a newbie or an expert? I guess I'll leave out exact numbers since apparently those will be filtered out but if you're curious find me online and I'll let you know what I think those are. I've worked internationally for corporations and agencies.
Here is how I would determine my pricing if I was in your shoes:
How much are my monthly costs? Put together a list of your expenses including rent, cable etc.
How many projects can you manage at one time and realistically how many will you manage?
Do you have another job that will keep you from working on these projects full time when you are not off galavanting doing whatever you do for fun?
Take the number of expenses for the purpose of this example I'll say those are $500/month (realistically they are probably triple that but I chose a number that would be easy math in my head).
Then take those projects- lets say you can manage three projects.
If you have another job subtract that money from your current expenses. Let's say your current job sucks at pay (not realistically pays you $200/month).
Leaving you with a debt of $300. You need your three projects to at least cover your expenses which means each need to be worth at least $100 each. Again the numbers are all very obviously fake for any market in the USA.
Keep in mind though that you don't want to just work work work and never get ahead. Plus you have to consider 20% for taxes. You also need to plan ahead for dead months. Meaning months that you don't have work. I try to plan for one project to pay for 3 months of bills. Then again I can charge it because I have people who will easily pay me whatever I want.
September 28th, 2011, 04:53 AM
Cost of the Project.
Before going to do a project..
we have to analyze some of the things like that....
1.Requirement(0s,languages, front end, back end) software's cost
2.Design(banner, sample demo, logo, output design, diagrams, architecture)
you can put cost for 200 USD for those 5 points it will become 1000 USD
also if you having some of the workers ........... you can put cost for working time of your employees..by hours or days
This way only cost is calculated........
This what i know.........
Hope it will be useful to you......
Thanks for Reading........
October 24th, 2011, 11:35 AM
hey thanks divyaaj you have given a proper point to point and clinical way to explain the fees estimation,