Inside the Black Box of Web Design Pricing

Be47c213d584412f2dc86e47887a88a6?s=47 Jeff Archibald
December 07, 2016

Inside the Black Box of Web Design Pricing

Web design costs come in a huge range of shapes & sizes. Thanks to that range, clients can struggle with understanding why websites cost what they do, and freelancers/shops can struggle with how to price their services. That’s what this talk uncovers: the thought processes, variables, logic, and math that goes into pricing custom web design & development from the perspective of someone who’s grown from a two-person home-based business to an award-winning design firm.

Be47c213d584412f2dc86e47887a88a6?s=128

Jeff Archibald

December 07, 2016
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Transcript

  1. 2.

    WE HAVE A PROBLEM. Freelancers/web shops don’t know what they

    should be charging. Clients don’t know where the numbers come from.
  2. 3.

    HERE’S THE SOLUTION. Pull back the curtain on how to

    accurately & sustainably price web projects & put everyone on the same playing field.
  3. 5.

    WHAT WE’LL LEARN. How project quotes are calculated Why quotes

    vary so widely How to understand & calculate your hourly rate How to unpack features & estimate properly How to put it all together
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    UNDERSTANDING HOURLY RATE. Commonly based on: 1. how established the

    shop is 2. the quality of work they do 3. good ol’ supply and demand 4. whatever number popped in their head
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    BASE RATE=TS/(H*0.6) TS = Total Salary H = Hours (estimate

    1725/year/person) 0.6 = Shop utilization (will vary)
  8. 20.

    OVERHEAD % = OH/TS OH = Overhead TS = Total

    Salary (Salaries*1.4) OH% = Overhead Percentage
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    TS=(S*1.4) BR=TS/(H*0.6) OH%=OH/TS OHR=(OH%*BR)+BR HR=OHR*1.2 S=Salaries TS=Total Salary H=Hours BR=Base

    Rate OH=Overhead OH%=Overhead Percentage OHR=Overhead Rate HR=Hourly Rate
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    TIME (OR HOURS) TO DO THE WORK IS COMPRISED OF:

    features / requirements the complexity of them, and the personnel resources needed to make them a reality.
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    UNPACK FEATURES & ESTIMATE ACCURATELY. 1. Write assumptions / solutions

    into your proposal. 2. If possible, do a proper Needs Assessment.
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