In this article you will learn about how website design service providers charge for
their services. We will show you why websites can be so cheap and so expensive, what
are the pros and cons of different website design types. We will also explain how you
can prepare for an efficient, timely and cost effective website design and
The nature of website design service
Time * Rate charge = Cost
Depending on the provider, the formula may grow a bit more complex to take into
account possible risk factors etc, but the basic formula statys the same.
How is rate charge calculated?
In most cases, rate charge is calculated based on the market value and the skill
level of the team. This explains the reason why websites built in countries with
lower living costs may be cheaper given the same quality of work. Website development is among the top IT jobs to be outsourced to third party development teams.
How is time calculated/estimated?
Based on the initial requirements, the service provider can calculate the necessary
time to complete the project. Given the same requirements, each service provider may
have different time estimation (based on skills, experience, previous works, etc...)
In a website design and development project, the tasks are often broken down into
1. Meet with clients:
this task is extremely important. Simple
information request forms and emails cannot replace face-to-face to live meeting
sessions to understand the clients' business, needs, and goals. Meeting are often held
once per week from the start of the project till the final delivery.
2. Research project materials:
to create brand-focus design which
reflects the client's identity and vision, the creative team must go through a number
brain-storming sessions and collect necessary images and other assets. Depending on the
project's complexity level, development team must research new technologies to satisfy
the client's requirements.
3. Actual design and development:
the main component of website design
and development project. This tasks usually takes a good amount of time especially if
the client does not have good planning and keep changing requirements.
A good creative must spend a lot of time to research, design, test, revise until they
reach the final version that can speak for the brand and user friendly. We recently wrote an article on
website design for furniture retailers
, you can check it out to understand the research and design process we do for each project. On the other hand, budget service providers usually do not spend much time if any on these important tasks, they simply pick and apply a ready made template with a few minor modification. The final result may still look great, but since it was not researched, designed and developed specifically for you , the customer conversion chance can be hit and miss.
In website development, one can develop a website with the desired layout and
features in many way. A professional team will ensure that they will pick the best
way for performance, search engine friendly, and extensibility in the future. A bad
team will take any shortcuts they can and deliver work that may look good on the
Hint: spend a good deal of time working with the service provider from the start to ensure they understand your requirements clearly. Service providers that jump directly to quotation without first understanding your needs and goals should be avoided as they surely have not put enough effort into discovering hidden requirements that you may have.
4. Bug fixes, maintenance and support:
programming project can claim to be bug-free. The website project once done needs to go
through a process of checking, testing, fixing and improving to reach the final
As you can see, the requirements and the quality of work can greatly impact the total
amount of time spent on a website project. A hacky job can be done in hours while a
carefully implemented job can take months. As a client, you need to clearly
understand your requirements, acceptable quality of work, and thoroughly assess the
skills and experience of your
website design service
To quickly have an estimation of the website's project cost, checkout this
Note that depending on your service provider, the actual cost may vary due to
different rate charge.
“ Website is an investment that can generate great results if done right.
Different types of websites
Assuming that we custom build a website without using template, the estimated costs
for different types of websites are listed below:
One Page/Landing Page
This is basically a website with a single page. Many small businesses are employing
this new single page website to keep the website content minimal and straight
forward. Sometimes this type of design can be also used to introduce a single
product/service/event to keep the visitors focused on a single purpose. In this case,
the web page is also called a “landing page” because people will land on
this single page when they click a specific link from an ad or email, etc.
Because these websites are so focused, it usually minimizes the amount of effort
required to build them. Total hours for this type of website can range from 40-80h+
depending on the project scope.
Small Business Informational
This website is the most common type of business website. It usually has 6 – 12
pages. The types of content areas you will see on these sites are;
The website is focused on promoting the brand, marketing the businesses services and
providing information. Total hours for this type of website can range from 80-160h+
depending on the project scope.
Medium Business Informational
This is similar to the above website type but there are additional needs for more
content pages and/or special functionality:
- Custom Customer Relationship Management tool.
- Online membership or logins.
- Complex integration with external services such as facebook
- Complex and custom information collection forms.
Total hours for this type of website can range from 150-300h+ depending on the
Small Business Ecommerce
This represents a simple marketing website with an ecommerce feature for show-casing
or selling of products or services. An ecommerce website with basic, standard
features takes from 100–200h+ depending on the project scope.
Medium Business Ecommerce
Bigger ecommerce companies usually requires a more complex website with more
customized features requirements:
- Large number of visitors.
- A large number of complex products.
- Custom order, shipping, accounting, fulfillment, and other back-end
- Custom price rules.
- Custom product presentations.
For this level of ecommerce website, the total hours can range from 400–1000h+
depending on the project scope.
Now that you know the rough number of hours a website design and development
project may take, you can easily calculate the cost. You can also use this knowledge to
calculate the amount of time the agency will spend on the project. For example, if the
project is quoted at $5000 USD and the rate charge is $50 USD per hour then the total
project will take 100h. With 100h, the project can be a little more complex than the
small business website but cannot be too complex.