No matter how big an organization is, one of the first questions they probably ask themselves before making an online presence is, “how much does a website development cost?”
Well, how much does a new house, or a new car cost- same are the concerns when getting a website built for business. However, the price of a website varies widely, depending on the number of factors like how many pages are there, do you want a custom design or a template, do you want a responsive design, is it an eCommerce store, what all extra features you require and so on.This may confuse the business owners as to what is the exact, correct pricing. This article will help you gain some good knowledge of how the cost is calculated and how companies quote their price for providing various website services.
Whether it’s a DIY (do-it-yourself) project, a freelancer or a full-service web design company, you have hired, there are certain proximate calculations businesses can make to get an idea of how much the whole project will cost. We explored the web and found a few discussions and articles about the cost of building a website.
After a thorough examination and research on finding the cost estimates, we do have gathered some real-time data to help you out with various levels of website costs for various typical website features and services. Based on our extensive work experience in this field, we have tried answering a lot many questions business groups and organizations face during website development. It is more focused on the companies that hire agencies to build one for them.
Nonetheless, the estimates may differ from company to company. All these price quotations are very much in line with recent trends and standards.
How do Website Companies Charge?
It completely depends on the type of website a business want. We will know it better in the next section.
Simply put, one of the most widely accepted methods in which most companies calculate the price estimates is that they establish a cost for the involvement of their team members in a particular project (the professional, employee cost), hardware expenses, in-house office expenses, business overheads like taxes, then calculate their profit margins and finally quote the price.
Further, almost every agency charge on hourly basis. For each project, the client asks for a time estimatefrom the development firm in completing and delivering the project, where the clients also specify their deadlines. Later, the Project Manager/ Business Analyst of the company provides their time estimates that involves designing, development, quality assurance and other related processes either as number of days or number of months.
On an average, the hourly rates range from $15-$30. 8 hours per day is considered a standard working time for a developer or designer in a full-service development company and thus, the price is calculated accordingly.
What are the various project models?
Some companies do follow a project model strategy, wherein the rates are decided according to the model the client chooses. One of the world renowned web design and app development companies named Konstant Infosolutions shared their website building project models with us, which gave us the idea of how the development cost is calculated as per the module type.
Full-time dedicated development: When a project is of minimum 3 months and can go until 6 to 7 months, it is categorized as full-time dedicated project. Here, the complete 8 hours of a developer and a designer or a team are invested in a specific project till the time the project is delivered to the client. Each day, they work dedicatedly on one project. So the cost is calculated as: 8 hours*number of days invested.
The company then calculates it with its hourly rates, considering other overhead expenses. Such projects give permanent/long-term clients to the company and thus, go on for several years.
Half-time dedicated development: As the name implies, it’s half time of the day for which a designer and developer or a team is dedicatedly involved in a particular project. So, the whole cost calculation is done with 4 hours in a day: 4 hours*number of days invested. The company then calculates it with its hourly rates, considering other overhead expenses (same as above).
Hourly engagement: Some clients believe in paying for the number of hours a developer or designer is engaged in a day. For all these projects, there is an hourly engagement model. The invoice of these projects are generated on hourly engagement of developers and designers. Generally, any of the concerned persons (of course, with the right expertise and experience) from the team is picked to perform the tasks. The cost is thus calculated on per hour basis.
How cost varies with the levels or types of websites?
Broadly classifying, there are two types of websites:
- Informative websites
- eCommerce websites
Informative websites: This category includes simple, informational, parallax, one-page websites and mobile ‘m. (for instance, m.facebook)’ sites. These websites do not involve any marketing focus like eCommerce. Averagely, the cost of these website ranges from $500- $1,000. However, the cost further varies with the number of pages and what all the clients provide.
Ininformational business websites, where the number of pages ranges from 4-6 pages (while some are even one-page websites too), the client provides text content, logo of the company (if any), images to be inserted. Further, other features like Calendar, Social Media links, gallery, email newsletter signup can be added on demand.
eCommerce websites: These websites require a lot more effort and time than the simple informative websites. The whole website building calls for adding products, creating payment options, applying filters, traversing through a number of pages, showing a number of products (even more than 1000), adding favorites, shopping cart history and various others. Typically, such marketing-focus websites range from $3,000- $15,000 (can extend depending on the features).
Some of the important elements that clients provide are related APIs, domain name, Themes, Plugins, Images, Videos and other custom-made features.
If there are requests for extensive customization in between the development process or after delivery, the cost is calculated as per the number of days devotedto the task.
Note: Some of the companies like Konstant do provide free after-support services for 3 months from the day the website is launched.However, if clients want to continue the support services, then they buy some hour blocks like 30-hour block, 50-hour block, 80-hour block and the price is again quoted as per hourly rates.
Advanced Features that Increasethe Website Cost
Inclusion of each of these functionalities will depend on the number of days invested, which is then multiplied by the hourly price and the final cost is calculated.
- Multiplatform Compatibility: Making a website responsive/mobile-friendly takes extra efforts of the developers and designers. Responsive websites are better designed to work with every device including desktops, tablets and mobile phones are scalable. However, a responsive design isn’t something you can just convert the normal website into a responsive site via a third-party. The code is overhauled from the base and thus, it requires an extra 4-5 business days (may vary depending on the size of the website). Larger, more complex website can take around 10 days or so.
- Live Chat Window: Most businesses today believe in 24*7 customer support to the clients, which certainly gives them more leads and more conversions. So, a live chat window feature on the website is required. Live chat is the untapped potential for your eCommerce business. As it turns out, it requires a different API altogether and also a great amount of coding. Then, there is additional time invested in troubleshooting and testing as well. On an average, including a live chat window takes around 6-7 additional days.
- Refer a Friend & Earn: This scenario is adding an altogether new offer on the website, which will always be ON if a customer comes through a Refer a friend option. Again, designers have to first design the functionality and put it on the website and simultaneously, the developer has to code for applying the cashback or other offers for the customers. 3-4 days are allocated to this task.
- Subscription Management: Many clients request for a subscription management after providing a limited free reading services to site visitors like reading research-based articles, magazines. Website development companies then have to set the development and design teams again and engage them, which takes around 2 additional days, and the price is estimated accordingly.
- Affiliate Management: With novel developments in online marketing, most eCommerce websites further ask for introducing affiliate marketing on their website, which can give them more customers and more sales. The costs involved in setting up this performance-based marketing are much more than that endowed in the above features. The rates can’t be defined here since there are various types of affiliate management.
Cost for Website Revamping
When a client sends a request quote for website enhancement or revamping of the website (where a reference website is given and the company people do not have to start afresh), the cost is calculated page-wise. Each page may require development of a different functionality apart from the basics of content text addition, image insertion, template implementation, adding custom features and functions like video players, banner slideshows, online directories.
All said, this is one of the best budget plans to help businesses spend wisely and limit their financial prospects when it comes to building a website. Make sure that the website development company you choose is genuine and presents proper documentation as soon as the deal is final. There are few fear factors associated when selecting a website builder, so be careful before you are conned. Please see the blog post on 7 Questions to Ask When Hiring a Mobile App Developer.
So, to save yourself from the headaches of deciding whether a web development company is asking for the right price or they are overcharging you, consider planning and evaluating your investments likewise.
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