Boyink! - Spring Forward on the Web

$500 is way way too much.

The above quote was from a gentleman trying to get a handle on just what it might cost him to have a designer re-do an entire site, in this case an ExpressionEngine site with a mix of blogs,“static” content and discussion forums.

I don’t mean this as a flame - but rather just want to use this case to point out some issues that come to mind:

• Pricing before requirements.
  I wonder how many car salesmen get asked “What does a car cost? Not a specific car, just in general if I want a car to drive how much would that cost?”
• Perception of the value of web design.
  Around here in W. MI I find that to have anything done for me the cost of labor is $70-$80/hr.  That’s for mechanic work, welding, construction, etc.  I’ve always been curious as to why web design and development (which requires at least the same level of skill and technical knowledge as these other trades) is perceived has having a lower value?  Is it because people have heard of a co-workers nephews friend who is in high school and “does web stuff” for $10/hr?  Is it because it’s hard for a “non-webhead” to judge different levels of quality in web design?
• What’s “reasonable”?
  If my rates are based on my cost of living and other overhead, and are in-line with similar businesses and other skilled trades in the area, is that not “reasonable”?
• Freebies.
  Do sites like Open Source Web Design—which offers free site templates - help or hurt the perceived value of web design?

Again, my apologies if this comes off as whining.  Maybe folks working in other skilled trades have the same issues (it wouldn’t be the first time I thought it was all about me..;)).  I’m not really sure there’s much that can be done about it - I figure all I can do is try to quote work in a reasonable manner, based on experience, based on costs of being in business, and let the projects fall where they may.

Comments are closed, but you can read the comments other people left.

1. nate Klaiber on April 28, 2006

   I don’t see it as whining either. Its a tough situation. I initially wanted to do freelance development around my area, but I found that people just want stuff for cheap. They don’t have the budgets and they don’t take things seriously. As a web developer, part of my job is to educate the client as to WHY you do things certain ways. Why you dont pay your nephews friend in high school if you are looking for a professional and scalable website.

   The problem I see in my area is POOR quality of local ‘web design’ companies. ANYONE can call themselves a web designer, all they need is to take a class in HTML and get Microsoft Frontpage and they can start making money. It is people like this that don’t charge what they are worth, because they dont KNOW anything in order to properly price.

   I think the ‘free’ stuff out there does hinder the perceived value of our work. I also think that about some CMS’s as well though.

   Needless to say, I stopped doing freelance in this area about 2 months ago. I have a full time job that allows me to really focus on the websites and quality control/maintenance. It wasn’t worth the stress and hassle.

   Time is money, and I was spending way too much time away from family, friends, and other things - and not getting paid near what the work was worth.

   So, there are my ramblings for you.

   Peace,
   Nate

2. Paul on April 28, 2006

   Maybe the reason the perceived value of web design is lower than the perceived value of trades is because it’s easier for the average person to grasp the potential pitfalls of having your co-workers nephews friend install a hot water heater for $10/hr.

3. Olivia on April 28, 2006

   Well, I think that there will always be people who don’t see the value at your price level, and these are clients that are meant for other people.  There are clients who are a good fit for a $10/hour high school student “web designer”, clients for easy templates, and clients for custom work, and even clients for pricey custom work beyond your price level.

   It’s a matter of sorting through all these folk, attracting the clients at your price level (the “right clients”), and sending the rest off to other clients. 

   The challenge, of course, is to find enough of the “right clients”—-your clients—-to support yourself and your family.  This is, I think, a massive challenge no matter what.  The cost of a conventional corporate job when you want to be working from home may far outweigh the struggle and pressure, though, of the constant marketing in the early years when you work for yourself. 

   There will always be people who do not value what you do, or think you’re too “high” for them.  I accept these people, and cheerfully refer them to low-cost and free resources that better fit their needs.  Then I go back to work finding people who are my right clients. 

4. Michael Montgomery on April 28, 2006

   I think it may also have something to do with the age of the industry.

   Consider the early days of any profession: medicine, law, architecture. I’m fairly certain they encountered the same continuum of (mis)understanding.

5. Nate Klaiber on April 28, 2006

   I think Paul hit the nail on the head. Any person can understand that you just dont let anyone fix your hot water heater.

   I often use the analogy of a doctor, or your car maintenance person. Would you really trust your brothers mothers uncles son to fix your car for a low rate, all because he learned about cars in high school? Would you trust someone like this to perform a critical surgery on a relative?

   I know that may seem far fetched - but to most people there is no inherent danger to having their sisters nephews son do a website for $10/hr. They dont understand the underlying implications - they dont understand how the internet works. This is just a small piece of the puzzle - but Paul, I agree with you 100%!

6. Kevin on May 01, 2006

   Forgive the cliché, but it all comes down to this: you get what you pay for. 

   There are a lot of ways to help people understand this with respect web development. I like to ask the $500Client some pointed questions about what they want from the site, questions that sting a just little when you ask them because they never occurred to them before you asked. Try hard not to make them feel stupid, though.

   Analogies like the hot-water heater are useful in helping people understand the value of your service. But in building general awareness about the skill involved in development, ask the $500Client some questions that you’re pretty sure your competition over at “AcmeWeb-Home of the $99 Website” won’t know the answers to. Most of the time these are questions about how their future site is going to ACTIVELY support their business and its model. It takes time with the client to understand how the site will do this, time that AcmeWeb doesn’t have because they’ll die under the $99-a-site pricing model.

   As the industry matures, people WILL realize that like in any other industry there are great practitioners and then there are run-of-the-mill players. Great practitioners’ rates will be justified based on profitable results for clients: more signups, more sales, better reputation, etc. And eventually consumers have to understand, too, that a Website isn’t just a message in a bottle. Remember this: the saying, “Build it, and they will come”, came from a film called Field of Dreams. Ask the $500Client who’s going to help them fill their stadium (and how) once it’s built.

   A couple of Tips for the Talented:

   1. Don’t compete on price, someone will always beat you. ALWAYS. Compete on quality and service. I can’t remember the last time I hired a contractor of ANY kind because they had the low bid.

   2. Stay away from shoppers who ask if $500 will be enough for a site before they’ve even told you their name. There are many, many reasons for this.

   3. Don’t panic. There is a TON of work out there as people begin to realize that Web sites really can help develop relationships with their customers, partners, investors, and staff.

7. Phil on May 07, 2006

   Man… there’s the gospel of web design. That spoke my feelings out in the matter. I am happily taking on free jobs right now because I feel it is a worthwhile start, and I am happy to help out a couple contacts in non-profit land. But eventually it would be nice to stay afloat in the industry. Sometimes I don’t know if it is even going to happen. But I’m not worried, I guess. We’ll just see how it goes. I do notice that the large majority of jobs out there seem to be those ones where someone expects to get away with paying small amounts for a quick fix. I would never make it on those type of arrangements and would probably avoid them. In fact, I’m beginning to wonder if it might be better to just get hired at a firm that does that service, since they know what a designer is worth. Who knows what I’ll do. I still have time to figure it out.

8. Kevin on May 08, 2006

   Found an interesting article here about pricing projects:

   http://www.blueflavor.com/ed/tips_tricks/pricing_a_project.php

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