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  1. #1
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    Insider Industry Information Companies?

    Are there any websites or companies that provide free or affordable resources to evaluate a web market, going prices etc for a web design company? I am getting a lot of customers and more than half say I am under charging. I have been told the same thing by designers who I do work for.

    I heard that the average small business website costs $40k? While a large company can cost over $100k? This does not sound right..

    I design websites, I dont know a whole lot on making a php or asp application from scratch, I can however make themes for Magento, Joomla etc.

    I am just looking for insider information.

    feel free to send me a pm if you feel that the knowledge you know should be kept quiet.

    I am in the process of finishing the LLC formation of my business.

    Thanks for your time!

  2. #2
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    It really depends on what the site is for and how complex it is. And you can test any price whatsoever. You'll find your profits go up as you hit a sweet spot, then drop off as you raise your price past that.

    People say a lot of things they never intend to do. People rarely put their money where their mouth is.

    One site I worked on was Drupal, with LDAP for membership management, eGroupware for project management, and Open Hula with a lot of custom design. Something like that costs quite a lot -- not only due to complexity alone, but complexity in service to a strategic purpose.

    Slapping up Joomla and a template for $40k? While it might be done, I wouldn't try it unless you have outstanding skill as a sales person.

    There is nothing carved in stone as to what "a site" should cost. But it is not a simple list of this deliverable costs exactly this much, and no more. If your skill in selling can't pull off the industry average -- you're not going to be able to charge industry average.

    A general rule of thumb is, the more complex, custom designed, and results focussed a site, the more you can charge. If you redesign a site which was producing $100k and it now produces $185K yearly, the client will have little problem paying $40k.

    The more technology centric, the more of a commodity it is. The more you design around business strategy, the more you can charge. Combine technology, business strategy, and a lucrative specialized niche, the price goes higher still.

    Trouble is, most designers haven't even conceptualized the design changes necessary (other than raw traffic) which produce conversions to that level of results. While using the word branding, they haven't a clue as to what produces a brand -- other than their own untested and untestable beliefs on the subject. They've never heard of A/B Split Run testing -- and couldn't imagine what to test even if they did.

  3. #3
    SitePoint Addict g1siberia's Avatar
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    if you are getting a lot of feedback you are undercharging, just bump your prices up 25% and see what happens. bear in mind that people do equate quality with price, and will think that a $500 webdesign couldnt be as good as a $1k design even though as designers we know thats not necessarily true. never be afraid to raise your prices. charge what you are worth.

  4. #4
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    Well, local companies say they have paid over $1k for what I have done for less than half.

    I was thinking $2-$3k for a Joomla website?

  5. #5
    Life is short. Be happy today! silver trophybronze trophy Sagewing's Avatar
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    Quote Originally Posted by dalexdesign View Post
    I heard that the average small business website costs $40k? While a large company can cost over $100k? This does not sound right..
    ...

    I am just looking for insider information.
    That doesn't sound right, no. The 'average small business website' can be defined any number of ways and I've seen numbers from under $1000 to over $100,000. To get real information, you have to be much more specific.

    And, a 'large' company can easily spend more than $100k on their website. I don't doubt that Microsoft spends much more than that per week on their site. What does 'large business' mean to you?

    The term 'insider information' has a specific meaning. What you are looking for is market research. You won't find any simple, easy numbers here.

    You need to look at companies that are similar to your own that work for clients that are similar to the clients you are targeting. Even then, you'll find wildly varying numbers, but it's a start.

  6. #6
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    "
    You need to look at companies that are similar to your own that work for clients that are similar to the clients you are targeting. Even then, you'll find wildly varying numbers, but it's a start."

    That is all I have been able to do...

    some companies are making over 20 million while others are making 100k a year.

    The gap from 100k to 20 million is probably due to marketing. However unsure as to what to expect. I am happy with my current volume which is why I am forming the business.

    I am making more than my prior job and will do so even once I pay expenses " I calculated 1/3".


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