Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : How much to charge for services?

[Captian_Spike]

Hey all,

I'm planning on branching out in to new markets. I have a lot of ideas but I'm going to tackle them one at a time. The first thing at hand is Web Design.

What I'm planning is a complete package that comes with website design, coding, hosting and updates for 1 year. So I would take care of every aspect of running the clients website. Exactly how much could I charge for a job like this. What would you consider reasonable? I'm thinking around $500-$800. Is that to pricy or underpriced? Also, does anyone have any idea of the demand for this? I would most likely be targeting small-medium sized businesses.

[EngineGroup]

the price range that you are looking at seems reasonable, however one thing that you may want to consider is the amount of updates etc as they could be pestering you every week to submit some new peice of news

i believe that there is still a strong demand for a "all in one" service, and it enables you to charge a premium on it
sally

[WebDatum]

Hey man,

Be very careful about offer in the one low price thing for design... it just don't work. I did the same when I got started and it happens for sure... people take advantage and pester the crap out of you... and they will be the first to call you on "I thought design was included so change my entire page" It sucks... bill by the hour... serious clients know that it costs for design and they will pay for it if it is good design, watch your back

[Captian_Spike]

Ok, do you mean charge by the hour for the design and coding? Or just for doing changes and updates to the website when its finished?

[MAndrew]

Bill a flat rate for the design, then charge a service fee for updates.

Personally, I don't like 'by the hour' because then you get those clients that dmand timesheets and endless phone calls accounting for your billed time.

[WebDatum]

No need for time sheets... what you do is take their info for what they want from the project... then you send them an estimate on how much the project will cost given the known criteria... cause I have clients that love to change their mind about a site after the initial layout is done they want to change it... well that takes more time so they get billed more. They understand that and it keeps things fair... its all about getting paid for your time. period.

I have a great form estimate that is quite simple and all my clients so far have been really happy with it. It describes right in the cost section that changes to criteria and project scope could cause the price to be higher.... its up to them.

If they coud do it they would, but they need someone who knows what they are doing. They also know they will have to pay for that. If you are billing a flat fee for design, I gaurantee you are losing money left and right. I would be will to share my estimte form with you guys if you like

[Captian_Spike]

Thanks alot for the advice. It will be put to good use.

[VertexBilly]

WebDatum :
I would be will to share my estimte form with you guys if you like

I would be really interested in seeing your form if you are still interested in sharing.

I also bill clients for updates, but I require a 1/2 hour minimum. Even if it is just a couple of changes it does take awhile. Not only do you have to make the updates, but you also have to email the client, make phone calls, create invoices, mail them ect....
I've found my half hour minimum usuall catches that extra stuff.

Of course it's always good P.R. to throw a couple freebies. I have a client who has had me make over $300 worth of changes to his site in the last 4 weeks. If he emails and wants one single paragraph added or deleted (or something else small) I'm going to throw it in as a freebie.

[WebDatum]

Sure no problem.

Attached is an estimate I did for small local company. the nice thing about hourly prices is you can get the small companies by cutting them a deal on your hourly rate. Then they feel as though they are getting a good deal and not getting bent over. At the same time you are keeping your self free of any restricted contract for a set price.

REMEMBER THIS: legally the language used for things is very important. Never use the word quote... a quote is a set price for a project. Always use the word estimate. an estimate is an educated guess. but is open to change if the project changes... make sure your form says that. Keeps it fair for both parties

[Anky]

Originally posted by WebDatum
Sure no problem.

Attached is an estimate I did for small local company. the nice thing about hourly prices is you can get the small companies by cutting them a deal on your hourly rate. Then they feel as though they are getting a good deal and not getting bent over. At the same time you are keeping your self free of any restricted contract for a set price.

REMEMBER THIS: legally the language used for things is very important. Never use the word quote... a quote is a set price for a project. Always use the word estimate. an estimate is an educated guess. but is open to change if the project changes... make sure your form says that. Keeps it fair for both parties

What software did you use to make that estimate page?

[WebDatum]

belive it or not... its just a word template I made... real simple but it gets the job done.

[DataFlurry.com]

I like that simple estimate - Ties up loose ends that usually occur in web design.

On a different note - Unfortunately I have found myself tangled in a web of frustration in the past because I promised too much or else didn't leave room for changes to the cost of the project. I would also always shoot high when providing an estimate because it usually takes more time that expected (atleast for me anyway).

[WebDatum]

very true... you should up the cost estimate a bit since who knows how long it might take to actually do some of the things for this client. Its ok to be little high... just make sure you give them the best possible solution for their business... that means listen to the customer. really listen and be honest.