More on average web site costs
filed in Featured, Geek Tips, Hot Debates, Politics, Relationship Management, Small Business, Tutorials and Tips, Web Design for SMB, Web Media Reviews on Feb.23, 2010
I thought I might expand what I talked about a few days ago in terms of average web site cost. While the average was correct, there should be some discussion on what that means for an average hourly cost.
Hourly costs are much less transparent, as the hourly cost is not just a set price in most cases. That was different years ago, but clients are not as flexible to pay someone by the hour and let a project drag on and on, creeping project scope and hiking up the price.
When framing something in an hourly rate, you should talk to an industry analyst for exact comparisons. I will attempt to fill those shoes now to save you some time.
Official rates for the web industry in 2004, based on a major study by a company that escapes me at the moment, showed hourly rates for web design to be an average of $112 per hour. That seems relatively high, but you have to consider that firms have much more than a single person’s salary to consider. I had concluded back then that the firm who conducted the research had talked to corporate web service firms primarily. A better average should include freelancers and very small firms, with the current climate of economic recession taken into account as well.
In ways I can see, and many other experienced designers may be aware of, the $1000 to $2000 basic site that is hand-coded would work out to about $50 per hour. That would be either a week of half-time schedule or two weeks of quarter-time schedule (meaning either 4 hours or 2 hours per day of work on this project, respectively, in conjunction with other work those days), a total of 20 to 40 hours of labor. This is relatively low compared to the average in 2004, but again this is considering firms that are relatively small.
That $1000 cost could be only a few hours for established companies that are not using open source software but have a template framework they use to organize the layout and enter the text and image copy. In that situation you are paying for the use of the template framework, the expertise of the company and time in their likely busy schedule. Templated site designers, because the sites themselves are less work, tend to have more time to sell, relying on volume rather than quality of client.
This push towards volume sales rather than large accounts is inevitable in this economic climate. It also suggests that business owners want something quick and easy, even if they are working with a designer.
So what does that mean for supply and demand of hourly rates?
- Consumers want the best web site they can get for their money, if paying at all. (Low hourly rate potential: $20)
- Consumers need to get online, and will do so eventually. (High hourly rate potential: $120+)
- Consumers demand ease of use, customization and communication with their designer. (Mid-range hourly rate potential: ~$60)
I suggest $120 per hour as a starting point for high rate potential because freelancers could still get away with charging that much if they do it smart, but ultimately the mid-range hourly rate potential will win out because it meets demand. I should put in there under demand that communication with designers are demanded without consultation fee; we live in a customer service world and to have a free conversation with a professional is expected, though not always offered by businesses. So you reduce your time spent making money a bit, but you don’t sell yourself short because that only leaves you with precious time to design.
This also corresponds to the rush for designers with open source software as a template framework. I promise I will go over why that is important soon.
