I’m just curious, as to which is the most commonly used method and why. I see many design companies that offer a few packages with a set price (usually 3 packages total). There are also those that do not offer any price range at all and rely on the customer contacting them for a price quote.

What I want to know is, are there any pros/cons to using either method? I would think the set price method would attract more buyers as some might not want to go through the hassle of calling in for a quote. On the other hand, when offering quotes you can adapt your prices totally to the customers needs.

Any feedback is appreciated.

I forgot to mention, I primarily have this question in mind for companies that target local business. As that would be my field of interest in the future :)

One problem in offering fixed price is if you get a customer who can't make their mind up on your design and you spend countless hours doing colour/style variations. Another is that some customers will try and get you to tweak this and that, redo their copy text 10 times etc etc. You can very soon find yourself putting a lot of hours in with little reward.

To get around this you have to be very specific about what's included in your packages, what they get and what is extra. You can always use preset templates for the customer to choose from.

Another approach is to offer "a la carte" pricing.

I absolutely believe in the hourly price, and in creating quotes based strictly on the amount of time you anticipate a project will take x that rate. This does two things: it gives the customer a solid price for which to budget, and it gives them an hourly rate, so they understand what it will cost if they request something that moves outside the original scope of the project.

The balance here is that you have to make sure the discovery work you do before you write your proposal is thorough, so you truly understand what is going into the project and can scope it out in detail. Also, require customers to sign off on various milestones along the way. When you come to them with analyses before going into production, have them acknowledge their receipt and acceptance. When you complete layouts and they are satisfied, make sure you document their satisfaction. Etc., etc.

This way, if the customer decides they want something done differently than what they've already accepted, they're not taking advantage of you. You can legitimately charge them for the extra time at your normal rate.

Now, the nice thing to do is build a few hours of outside-of-scope change order work into the budget, basically telling them you'll give them X# of hours of unscoped time for free, and let them know they'll be charged after that. For the customer's peace of mind, they get all the feedback and changes they want before signing off on a milestone. So they still have full control, and you only move forward to the next step in the design process when they have expressed full satisfaction.

It's very much a win/win way to go!

I absolutely believe in the hourly price, and in creating quotes based strictly on the amount of time you anticipate a project will take x that rate. This does two things: it gives the customer a solid price for which to budget, and it gives them an hourly rate, so they understand what it will cost if they request something that moves outside the original scope of the project.

Absolutely! Unfortunately the only way to judge how long a job will take is by experience.

Absolutely! Unfortunately the only way to judge how long a job will take is by experience.
Yep, and in fairness to your customers, this may mean experience happens at your own expense. If you quote too few hours, you end up working a little harder and you learn from the experience. If you quote too many, you bill less than what you quote.

That's just how it is when you're starting out. You'll tend to learn about yourself very quickly when you're forced to evaluate your time and worth ;)

That's just how it is when you're starting out. You'll tend to learn about yourself very quickly when you're forced to evaluate your time and worth ;)

he he - we've all been there I think!

Heh, thats a problem I was thinking of when coming to hourly rates... I wouldnt have the slightest idea how to charge for a project based on completion time due to the fact I completely lack experience in that area :)

But hopefully when the time comes I'll be ready to handle such things and learn on the way. I am still quite a ways off from ever being able to freelance due to the fact I am hitting those html/css books :)

You could start out by doing free/low cost sites for local good causes etc. This would give you a feel for time and expenses you will encounter when developng a site.

Good idea, I'll definatly give that a shot. Some free/low-cost work would be good to establish a portfolio as well so it works both ways I guess :)

Some free/low-cost work would be good to establish a portfolio as well so it works both ways I guess :)

Now you know how many web designers start out :)