Just had to jump into this discussion! I'm often amazed at the variances in pricing structure. Chris does a 9 page site for $2,500 and some people think it's too expensive.
We generally charge $1,000 for the first page, and $200 for each subsequent pages, add $210 for a form, $100 for any graphics manipulation, $90 per hour for any editing....all up we would normally charge at least $3000-3,500 for a 9 page basic site.
And I still think we're cheap.
And on most sites I generally assess how much I think the client will pay and base the final quote on that.
Let's take a look at the overheads. $40,000 invested in software and machines, rents at $1,200 a month, electricity, telephone (3 mobiles, 2 phones lines, fax line, modems, etc), stationary, office furniture, superannuation, sick pay, the lsit goes on and on and on. At an average billiable rate of $120 per hour we make a little profit, but so we should for all of our intellectual property, experience, training, skill, investment, etc.
You have to take a look at the value of what you are offering. We altered a client's web site competition a few months back. They now get 800 entries a month, as opposed to 15. They e-mail these same people a special offer every month (with permission) and will generate (on the figures based on just the response for 2 months) an additional $184,000 revenue for what is an additional 2 hours work tops for the entire year.
The changes we made were done after an hours consulting ($180 ph) and 1 hours work ($120), plus licensing a script from us ($195 pa). $500 for an additional $184,000 pa basically for as long as they do about 2 hours work a year. Should have charged $2,000 and next time we probably will.
And I know that if we charged $20 per hour then they wouldn't take any suggestion we make seriously. In fact they wouldn't even employ us.
And non-profit organisations.....what they want is donations. Show them you'll design a web site that will generate them income and they'll pay you the earth for it. They're just another business trying to make a buck.
$2,500 for 9 pages isn't highway robbery. I'm sure Chris has provided an exceptional quality site, has given cheerful and professional service and will continue to service them very well. They got a bargain.
Funny thing with our clients, the ones we make the most profit on are also the ones ranked as happiest with the quality of our work.
I go on and on about charging clients and if you're not bored yet, check out this thread for more of my rantings on this subject.
BTW Steelsun, excellent suggestion about the tax thing. Good thinking 99.
Hope this contributes.