How I Determine My Prices

In my recent crusade to help my hometown have a more online presence, I sat down and took a good hard look at my pricing strategy. Sure, my biggest reason for getting into the web design business is that I offer very reasonable prices, but at the same time, I am doing nobody justice if I am undercutting myself. I realized from my very intensive research of my price list that I was paying myself less than minimum wage.

It is true what is said about things being too good to be true. If I offered my services at too low of a price, the question of quality would come in, as well it should. You can’t expect to get a quality website from somebody who is not really invested in making one because they aren’t gaining anything monetarily by it. I am an altruistic person, but I also have worth, and I need to make sure that worth is being respected.

In this post I would like to explain how I determined my prices.

For my Level One web design prices, I offer the choice of hundreds of templates, I will create online forms, provide social media integration, submit your website to search engines, and optimize your website so that you will get found on search engines.

My Promotional package price is $599. This package gives you one to two pages with two design revisions. The method I used to determine this price is that, on average, it takes me eight hours to master one page. If I take my going rate for service, which is $35 per hour (trust me, this is an insanely low amount for a web designer), I come up with $560 for two pages (rarely will anyone need just one page.)

Now, this does not include my time for the initial interview, content discovery, photo editing, or searching for the proper images for the page. These I write off as necessary and therefore not chargeable.

The Startup, Small Budget, and Small Business packages are priced with the same logic in mind, yet if you choose one of those packages and take the largest number of pages that the package includes, you are basically getting a whole page (that’s eight hours worth of work) for free. Conversely, if you choose a package and only take the smallest number of pages, I give you the option of adding more pages up to the largest number in the future at no charge. So any way you look at it, you’re always getting a free page.

My Level Two packages include a lot more options, such as the option to have a custom design, photo gallery, website analytics, video embedding, unlimited revisions within the first 30 days of completion, and includes first year web hosting and domain name registration (that is up to $160 value). Because of this extra work that needs to be done, I have determined that each page will take me ten hours to complete. Again, at the rate of $35 an hour, this is where I come up with prices for my Startup Plus, Small Business Plus, and Business Plus packages. The same logic applies to these packages as to the level one packages.

For my E-commerce packages, in addition to many of the options you’re getting in Level Two, I am also listing your items for sale. This is rather time intensive. I must have acceptable pictures of your product (you are responsible for supplying the pictures), and I must give a description of your product as well as the price. There is a lot that goes into listing a product.

For my E-Startup package, which allows for 100 items and the ability to accept credit cards, I figure the average number of pages for these sites is 10 pages. Ten hours per page times $35 per hour is how I come up with the base price. Then I have determined I can list approximately five items per hour. So if I am listing 100 items, that is $700. Add that to the price for creating the page, and that is how I come up with the price for my e-commerce packages.

My prices are not written in stone. I’m willing to haggle on the price. For instance, if you want to create an e-commerce site and you only need 3 pages and only have 25 items, I am more than happy to figure how much that would cost me by using the above algorithm, and I’d come down on the price for you.

I hope this post makes sense to you and helps you understand that even though I have raised my prices, you will not find a more reasonable web designer that is going to give you a quality product than me.

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