Case study: are web design projects too expensive?
Nowadays, people are more attentive on each dollar spent and any economical activity is suffering a contraction. The web design market is also part of this global and unstable economy, so it is facing the same challenges, even though outsourcing has become a very common activity, producing good profits for both the outsourcers and workers.
Freelancers and web design companies reacted to this sad context, proposing various and attractive offers. In spite of these offers, many people have put on hold or gave up having an online presence because of the costs involved. It is very hard to fight against an old and worldwide spread conception that creating a website is something for kids. Are truly the prices of creating a website too high? There can’t be an ideal answer to these interesting questions and each situation needs a particular approach. Here, I want to present some aspects regarding the prices of web design projects which should give you a good idea why the costs of web services are maybe too high.
It may sound a little harsh and avaricious but money is the mobile which is governing the capitalist economies and almost everything depends on them. I believe that the best solution to explain the cost of a web design project is to present the most important and common sub-costs. Please, let me know if you have another idea, other sub-costs to add or cut from here, so use the comment form!
1. The cost of school and after-school specialization
The school must be regarded as an investment which, with the passing of time, it should be amortized; the same principle is applied to any other after-school specialization. Each project must offer a small compensation to the huge amount of money invested in order to amortize the total cost of education. The more people are working on a project, the more money is required to amortize the education and the hired specialists. The immediate conclusion is that a more specialized project will cost more because the preparation of the designer was longer, more difficult and of course more expensive. The bad news is that the prices of the education are higher and higher.
2. The costs of software, tools and other adjacent stuff
The Creative Suite 5 has a total cost of 2500$+, a pretty huge amount of money but all the specialists say that the products are amazing, fully deserving their cost. Another part of the cost of any project is to amortize the money invested in these software and tools.
The coolest projects are made using the features of the latest versions and I highly recommend purchasing these. In spite of that, there are many specialists who never want to update their software and the work resulting is still amazing. Anyway, a lot of time is saved due to the richness of the possibilities. This sub-cost implies the cost of acquisition of other tools, not directly related to design. A busy freelancer may keep the accountancy using an online application which has a purchasing cost. Definitely, almost everything may be substituted with free solutions but a serious brand needs the best alternatives.
3. The office rent
A nice office from a towering building is the dream of anyone but to realize that it is a must to pay a pretty decent rent. A company or a freelancer based in such a coveted office must pay a rent which should be monthly amortized (if the rent is paid on a monthly basis). We all know that the rent depends on the location in the city, the age of building, the facilities, the furniture but it is almost a law of commerce that a luxury place attracts rich clients.
4. The cost of employees non design related/time spent of non design activities
When someone wants a web project, he has two possibilities:
1. Hire a specialized company, which will have employees who will effectively contribute to design but there are people who will work for non-design activities i.e. clearance, acquaintance, justice presence, advertising.
2. Hire a freelancer who will accomplish both design and non-design related activities.
Here comes in another sub-cost of the total: all the employers non-design related must be paid and their wages come from the payments of the clients so the final price of a web design price includes a part corresponding to the wages of the non-design related employers. The freelancers are doing everything by themselves and they also are asking money for their time spent on non-design activities as accounting, paying taxes, or self promoting. The rule of capitalist economy says that time is money.
5. The cost of insurance
To avoid any “chance” of bankruptcy, both freelancers and design companies must save some money for worst situations and once again, a part from the overall price of the web design projects is canalized to these special funds. Besides that, a freelancer must pay his taxes to benefit from medical care, various insurances and taxes.
6. The profit
Adding up the amounts of money from the previous points, the provider of web services is making the price which guarantees the amortization of the investment but nothing more. Nowadays, the entire society is headed towards profit so the real price must include another sub-cost, which in fact is the profit. Nothing is worth without obtaining the extra money. Some people may consider me avaricious but it depends on the perspective: without adding the supplementary cost-the profit, the provider is on zero, but what about the work invested? I believe it is for the best to consider the profit as the reward of the intrinsic work, and each one rewards him as he wishes.
In conclusion, some people may say that all that really matters is the final amount of money to pay, not the sub-cost or any other partition of the cost. Anyway, this post gives everyone insight of the factors which contribute to the price of a web design service and reading and understanding it may conduct to a better dialogue between client and employer. It will be the supreme reward to the author to find out that a client now comprehends what the work of a designer is all about, the problem of the payment being more decently solved.
About the author: Alexandra Vlasceanu works for conversion rate optimization Company Invesp and enjoys writing on landing Page optimization and affiliate marketing.