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The Real Scoop About Hiring a Web Company (& The Fees Involved!)

Articles / Web Tips & Tricks
Posted by support on Jan 24, 2006 - 09:56 AM

A Lack of Information could cost you BIG TIME!!
Regardless of which companies you interview as your prospective web design company / web solutions provider / web designer / SOHO,
for your web needs, be sure to first understand the following;

The Real Scoop About Hiring a Web Company (& The Fees Involved!)

By Francis J. Morris, AskMorris Inc.

January 24, 2006

So... you've decided to setup your own company web site. You've seen the many different options available to you on the Internet and chances are, you have even received some e-mails or brochures with great promotions and offers from various companies. 

The big question now becomes - which web design company to select? And how can you tell whether the proposals you are getting are really a good deal or not?

Many clients do not fully understand the nuances of web solutions / web design pricing - and so, they are often at a disadvantage when comparing proposals from various providers.

The purpose of this article is to explain common web solutions terminology and describe the various rates & fees that you should specifically look for and ask about.... before signing off on any contract or agreement. This article will also help you better understand why pricing can vary so much between different web solutions companies.

Understanding the "hard costs" behind running a web solutions company

To understand web site pricing, one should first get a handle on the costs associated with creating a web site

First and foremost, ALL web solution providers / web designers / SOHO's, have the same core cost - the salaries of programmers and web designers. This cost will vary depending on the number of staff the company has AND how qualified and experienced the staff are. Obviously young developers that just graduated don't cost as much as seasoned professionals. BUT just because a seasoned developer knows how to program in C+ doesn't mean that he knows how to program well in programming languages that are more suited for the internet like e.g.  JSP, PHP and ASP.

On top of these costs, there are network costs , hosting costs & server equipment costs. These costs  can vary depending on how big or small the web solutions company is and whether they provide hosting services to their clients as well. Obviously a little SOHO , (a designer working from his bed room) will not have these costs.

Beyond the salaries and network costs/equipment costs, there are other costs such as the administrative costs of just running a company- from accounting, sales, customer service costs associated with operating a portfolio of client accounts, and so on - All of these fees vary from one web company to another but are all generally in the same ballpark.

All of these add up and must be covered by the pricing structure that the web solutions company sets up for their clients. Now that you have a little background on the costs of running a web company, we will discuss the various items that you will commonly see on proposals from web design companies.

Web design & Pricing Terminology

Here is a list of common items used in the industry and what they mean in "non-geek" speak.

The index page - also known as the main page
The "index page" is the first page that people see when they go to your web site. Different companies charge differently but the norm in Taiwan, on average, is around NT$3-5,000 for designing just this page.

Web pages
All other pages that come 'after' the index page. Different companies charge differently but the norm in Taiwan is, on average, around 500 - 1,500/ page

Splash page or intro page.
A page that is shown before the index page as an 'intro'. It usually comes with some kind of animation, almost like a movie preview. This is often made in flash. Again, different companies charge differently but the norm in Taiwan, on average, is around NT$5,000- 20,000 for one intro depending on the difficulty level. The more detailed flash, the more expensive.

'Static web site'
A 'static web site' is a web site that consists of a bunch of web pages and has no database, no programming. It can look pretty but is often not functional and not easy to maintain. Different companies charge differently but, on average, the norm in Taiwan is around NT$20,000- 60,000 for one site. Obviously the price depends on amount of pages, how much design is involved and whether or not you use flash.

'Dynamic web site'
A 'dynamic web site' is a web site that uses a database and lots of programming to give more interactive services to its users (your clients). These kind of web sites are more like systems(Software programs). A dynamic web site is usually easy to maintain and very functional. Different companies charge differently but the norm in Taiwan on average is around NT$200,000- 600,000 for a professional system. For a big, customized system it can cost more than NT$800,000 and sometimes having a system cost more than NT$1,000,000 is not unheard of.

Obviously, the price depends on the amount of programming done, the number of functions the system has, how much design is involved and how user friendly the system is for users AND also HOW user friendly the system is for YOU when maintaining the web site, meaning how advanced the 'backend panel' is.

So what controls pricing? Why are prices so different?

You have probably already asked yourself why is the range in prices so huge? What is it that makes one web site cost NT$60,000 and another one cost almost NT$ 1,000,000? They look almost the same!!

1. Well, the answer to that question is the same answer as to when you hire somebody to build you a house. If you contract a big firm that has built entire business malls, like the 101 building in Taipei, then that will cost a lot more than if you hire your neighbor's nephew who just graduated from engineering school. The big firm has very good and very experienced engineers who have run projects like these many, many times before. They KNOW where most problems will occur. 

The nephew is a lot cheaper but he is also a lot more inexperienced and just doesn't have the know-how it takes to create something like the 101 building. He might be able to create something that on the surface looks like the 101 but as soon as you scratch the surface the building comes crashing down OR the front door won't open OR the windows are stuck...you get the picture.

Remember the old saying, "you get what you pay for..."? The same logic applies. Don't settle for cheap as it might be more costly in the long run to fix the problems that would have been avoided if you bought what you needed in the first place.

So the question then goes back to - What do you really need? Do you need the 101 building?  Make sure to first understand what you need then get the right guys for the right job!!

So does this mean a firm that has the capability to make a 101 mall can't make something that is smaller and that doesn't cost as much so that it can suit your needs better? Of course not! A good firm will have a range of products and services to accommodate your needs. However you shouldn't expect a 101 building for the same price as a smaller house built by your neighbor's nephew...... 

Also, you should understand that when you hire somebody like a nephew, he is just ONE man. When hiring a good reputable firm, you are hiring a TEAM that should cater to all your needs. Obviously, a TEAM will have more know-how and experience than ONE man....don't you think?

2. Another thing that affects price when building systems or creating  web sites is whether or not the company you are hiring already has a solution like the one you want, meaning that they have already developed something similar, could be a similar function or a similar design. Obviously that won't cost as much as doing it from scratch. HOWEVER, that doesn't mean that it should be free!! Just because the web solutions company already has developed something like what you need, you can't get it for free because it still needs to be customized for YOUR needs. This is also where many clients make a related mistake by saying; "Yahoo, Google or eBay already has this function, why can't you do it for me cheaply?"

Well, consider how much Yahoo, Google or Ebay and the like spent on R&D costs, how much they invested to create and develop that functionality...AND keep in mind that these are also most likely proprietary . Meaning all these giant technological firms won't share their technology with others for FREE. If others want the same thing they have to develop it themselves.SO just because you can see it at Yahoo doesn't mean that everybody else has the same technology or functionality. It costs money to develop!! Are you willing to spend that money?

FINALLY

You need to FIRST understand EXACTLY what kind of web site / web solution you need so you don't buy something that is too BIG or too small, If you buy something too big, you might not have the staff who can manage such a system but if it is too small then it won't do what you need AND it won't grow with your company needs in the future. 

The company you want to hire is the company that:

  • can answer these questions for you
  • can honestly tell you and guide you to what you need and don't need
  • has vast and diversified experience of technology so that they don't just build the same thing over and over again
  •  communicates clearly with you in a way that you understand
  • doesn't try to sell you something you don't need
  • has a library of useful, already developed helpful internet business tools
  • has a good reputation and a record of good clients
  • is willing to listen to you

CONCLUSION
Thus, by understanding the true costs behind web solution companies and being aware of the different pricing as well as understanding why the pricing is different, you - as the client - can arrive to which deal is really the best one for your needs and what company you really want to cooperate with.

Visit AskMorris Inc. at http://www.askmorris.org [1] for additional tips
Or join one of
Francis J. Morris speeches about Web Tips & Tricks [2]



THERE ARE RELATED ARTICLES:

  • 'A Quick Guide' on hiring a web solutions company [3]

  • The Real Scoop About Hiring a Web Company (& The Fees Involved!) [4]

  • Top Ten Most Common Miscommunication Problems between Web Developers and Clients [5]

  • Top Ten Misconceptions about designing web sites and creating web solutions [6]

  • Important web design questions to ask [7]


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