Commerce of E-Commerce.

[Devious]

Any developer can install a script and put a price on it.
but what I would like to know is why so many developers price their shopping cart installation between $250-$500 and as high as $2,500

Is it because someone else is making money off their service, they feel they should make money off it? Or is there something more that simple script installation?

[shadowbox]

Installation? Do you mean design, set up, integration, hosting, training, support, analytics, customisation, etc? That all comes at a price - some guys just install oscommerce, others provide a complete consultancy and ongoing service. I know I charge a hell of a lot more than $2500 to provide my clients with an effective ecommerce solution that brings in results.

[Devious]

Okay, that's a start...

What do you offer other than traditional script installation?

[Sagewing]

Points of integration such as fulfillment, accounting, inventory, merchant accts, etc. can get pretty complex. A shopping cart script on its own isn't a business, it's just a script.

[Lars-Christian]

Think of it like this: You're paying someone to develop your website, just as you would if you were to hire someone to develop a five-page static website for yourself (like many businesses do).

The only difference is that they are using a pre-made script to power your site, which is actually a much more demanding job than just developing a five-page site, because every customer normally wants it customized and branded down to the very last detail. What you're paying for is everything that is done -after- the actual installation of the script, because quite frankly anyone with a few hours to spare and half a brain can figure out how to install a script.

If you actually wanted them to develop everything from scratch, just for you, well then prepare to enter a completely different price range

[shadowbox]

Okay, that's a start...

What do you offer other than traditional script installation?

...design, set up, integration, hosting, training, support, analytics, customisation, etc?

There's more to ecommerce consultancy that installing a script, anyone can do that. The guys who charge more will help develop backend admin, train clients how to use it, develop marketing campaigns, customer support systems, help with sales copy, calls to action, funnel optimisation, usability analysis, traffic and campaign analysis, conversion rate improvement, set up of merchant facilites, provide consultancy on related business matters etc etc.

[aspen]

.... or sometimes they just charge more.

I have a new ecommerce site (its almost done... I've been too busy to add products to it is all).

One group of guys was going to do it for $2500, with customized OSC. They took 12 weeks to produce nothing, and I dropped them.

Another guy was going to do it for $200, I told him it was too low, so I paid him $500. He did it all in about 2 weeks.... and his design was much much better.

So don't confuse cost with quality. They're not always directly related.

Also, realize that most web developers don't know diddly about most of the things Shadowbox has mentioned. These are people with degrees in IT/IS/CS if they have a degree at all. They can tell you what they've picked up reading forums or articles but its nothing you couldn't learn youself. There isn't anyone out there with an MBA doing web development. You might be hiring an expert programmer, but they're not likely to also be an expert marketing consultant or business consultant.

[dreamscape]

These are people with degrees in IT/IS/CS if they have a degree at all. They can tell you what they've picked up reading forums or articles but its nothing you couldn't learn youself. There isn't anyone out there with an MBA doing web development.

Not all of them. I have a BBA, and I'm doing web development.

[Devious]

Also, realize that most web developers don't know diddly about most of the things Shadowbox has mentioned. These are people with degrees in IT/IS/CS if they have a degree at all.

Hey, I know all about funeral optimisation!

[shadowbox]

.... or sometimes they just charge more.

I have a new ecommerce site (its almost done... I've been too busy to add products to it is all).

One group of guys was going to do it for $2500, with customized OSC. They took 12 weeks to produce nothing, and I dropped them.

Another guy was going to do it for $200, I told him it was too low, so I paid him $500. He did it all in about 2 weeks.... and his design was much much better.

So don't confuse cost with quality. They're not always directly related.

Obviously some guys just charge more for no reason (i.e. because they can get away with it) - that's the way of the world. So it's up to the clients to find out exactly what they are paying for, before they pay for it.

If a client requires full development, marketing and business services, training, ecommerce optimisatio and ongoing support and development, they should be prepared to pay a lot more than if they were just getting some geezer knock up a quick 'OSCommerce install, ta very much, best of luck, see ya', type of thing.