How much does a website cost?

Posted in Industry Trends, Websites or Tools

The question

This question has been asked for nearly as long as web design companies have been in existence. If you spend 5 minutes doing some research on Google, you will find the answer lies somewhere in the vicinity of FREE to upwards of $100,000.

I’m not sure this helps with making an educated decision as a consumer.

Having met over 200 small business owners in the past few weeks as part of the Achieve More Online workshops, I’ve seen first-hand some extremely bizarre website pricing and fielded many a question about what an appropriate cost might be.

The extreme

Unfortunately, I came across a business (single operator, home-based) who had shelled out over $7,000 for a basic templated web site with 4 pages (Home, About, Photo Gallery, Contact) by a Perth web design company who shall remain nameless. They had also paid for a content management system (CMS) which they had not received. The site would have taken less than a day to put together.

On the contrary, there seems to be an expectation from the SME sector that a high quality website should be somewhere in the vicinity of $2,000 or less.

The price is right?

While I don’t think there’s an easy general answer to the title of this post, here at The Frontier Group we have our own reasons on why our websites are priced the way they are.

The breakdown of a typical small business website:

Research – This is the first stage in the project, where requirements and the purpose of the website are determined. A website needs a real business reason to exist, and we need to know what that is.

  • The website needs to pass the what, why, how, what if? test. ie what/who the business is, why they should deal with you as opposed to a competitor, how you work, what the benefits are of using your product/service or alternatively, the downside of not using your product/service.

Content – This component is often overlooked or left until last. How can your website be effective in communicating to your customers without content? Just what content you want your website to have will determine how the site will be designed and structured. Knowing and planning for this upfront is key.

  • Think about the problem/s you’re actually trying to solve with a website and how that might potentially need to look, do some research on competitors who have successfully achieved a similar outcome in your industry.

Accessibility – Now we’re moving towards the design phase, so it’s time to start thinking about accessibility. We’re committed to complying with the Disability Discrimination Act 1992 when it comes to developing a website for all. This makes sure online information and services are accessible by people with disabilities. We adhere to the Web Content Accessibility Guidelines (WCAG) 2.0, which covers a wide range of recommendations for making Web content more accessible.

  • Most people designing their own website or using an online site builder will miss this step completely. On the other hand, there’s plenty of companies who will also leave it out, or fail to inform you about it due to price or ignorance.

Wireframing & Visual Design – At this stage in the project a designer may present wireframes of the concept ideas to develop an outline with the customer. Once a layout structure is agreed, they then develop the visual design of the website. At the completion of this stage images or “flats” are produced for each of the individual page types.

  • If you’re after a unique business look and feel, don’t succumb to the temptation of a templated site. While this may reduce barrier to entry, chances are, there’s a hundred other sites out there that look identical to yours.

Prototyping – We produce a prototype website for our customers allowing them to view it in a web browser. This allows them to “click around” the site and get a better representation of how different effects or transitions will appear. At this stage, cross-browser testing and necessary website code validation occurs.

  • Check that the site functions correctly and give it a thorough test. Select a handful of your best customers and give them the option to test it for you.

Deployment – The website is then deployed to a test server, so the customer can approve that the website has been produced to the required standard.

Hosting & CMS – Domain name, Email and Website hosting needs to be considered at this stage. Also licensing and setup of a CMS product for content management. For our customers a CMS is non-negotiable, as it enables the customer to make basic changes to their content on an on-going basis. This negates the need to contact us and pay for changes.

  • Watch out here for vendor lock-in. If you want to pick up your site and change hosting company or web designer, can you do so?

Other Considerations – You might think that the website is now complete, but a website needs constant revision and updating to remain relevant. Other options at this stage involve setup of specific analytical tools, search engine optimisation techniques, email marketing tools and maybe a complete online strategy.

The answer

Armed with all this information, how much would you now pay?

You should be able to make an informed decision as a consumer that you are indeed getting what you paid for. If you’ve got a specific budget in mind, you need to appreciate and understand what that will get you from a reputable company. The value of the website to your business is the single most important point to remember.

Finally, I’ve included a guide to fairly common pricing structures by companies who follow this similar process for small business websites:

  • $0-$3,000 – Simple templated design or inexperienced student or freelancer.
  • $7,000-$15,000 – Small business website with a unique business look. Reputable company/freelancer.
  • $20,000+ – Custom website with unique requirements. Usually requires a large amount of additional programming.

I’d love to hear about your experiences in the comments below, as a customer or web design company dealing in this area.

6 Comments

  • Pingback: Tweets that mention How much does a website cost? » Transcending Frontiers -- Topsy.com

  • mat

    May 31, 2011

    so… you have put up a pricing structure for what others might charge, but havnt put up any examples of websites you have done and the cost to have something similar put in place?

    i dont understand how you can “estimate the entire industry prices ” yet your incompetent such that you cannot give a pricing estimate(s) for your own services.

    Ive come to your site in search for help, only to be told “$0-$3,000 – Simple templated design or inexperienced student or freelancer.” -> thats within my budget so im off to find that!

  • Adam

    May 31, 2011

    Thanks for the comment Mat. Part of the reason for this post is that websites are unique and there is no one price fits all. We also choose not to display prices as most customers do not know what they want until we have an initial meeting, therefore we don’t like to set up false expectations.

    If 0-3k is your budget, fantastic and I hope it helps you find a provider to match your budget. Also check out http://sortfolio.com for a Web design search on price estimates which may help.

    We’re looking to add price ranges to our case studies so potential clients will have an idea of how much projects are worth. Unfortunately it’s unwise for us to estimate prices in that range that are just stabs in the dark. Each website has very different needs and goals and fixed advertising of prices is not something we’re interested in.

    Thanks for dropping by!

  • HyperBrendan

    Jan 25, 2012

    I have found that a lot of small to medium enterprise budget around the $1.5 to $3k in my area. THis is where my sites range, there are some more well healed companies that are prepared and willing to pay more, but do they get more? I don’t think so. I have been working in they field for 11 years and have seen the changes in expectations in the business community.

    My sites are all unique, well researched, developed with the customers in mind and with a business strategy behind it (i have a Masters in Business & Technology). The all have content management systems, some have full eCommerce capabilities, and most integrate with the customer’s other digital marketing channels.

    I work form home and don’t have many overheads, though I use subcontractors form time to time. I figure it is time to increase my price range a little, but the smaller small business sites don’t take very long to do. There is a risk that i would price myself out of the market, or would need to work hard at repositioning my company to be more premium and less “inexperienced student and freelancer”. Thanks for this article, food for thought.

  • Rachel

    Jan 25, 2012

    Great article, and generous with your information. One to show the potential clients when they want to understand more about the process.

  • Brendo

    Jan 25, 2012

    Important to take in account the economics of the business too – if you’re average profit per sale is $10k and you can bring in 2 or 3 sales a month via the web then its easy to justify to $10-20k or even $50k spend on a website.

    On the flipside, if you make $2 profit per sale and do 50 sales a month that originated from the web then spending even a $1000 on a website may not be a profitable exercise

    Bottom-line – work out how much you’re going to get out of it, then you can work out how much you can afford to put into it!

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Twitter

Great web stats at @petrescue , the driving force behind the rebuild of their systems by @frontiergroup . http://t.co/MTvfoxnU

@frontiergroup about 3 weeks ago #

Search Posts

Featured Posts

Categories

Archives

View more archives