Web design pricing structure research

[AndyJames2018]

Hi all.
As a start-up web design company I'm looking to price my services to suit SMB's.
Services to include web design, maintenance and marketing.
Focusing on web design, what ballpark figure would companies be happy to pay for a brochure style website?
I'm thinking of offering the site design as a one off payment, then a small monthly fee for hosting and maintenance.
Marketing would be separate service.
All site would be on the WordPress platform.
Over 25 years experience in web developing but realise that running a web design business is alltogether different and will only succeed if the pricing structure is right.
I think a simple approach to the web deign service would more helpful for the SMB's.
What are the thoughts of the SMB's on here?
Many Thanks
Andy

 

[fisicx]

This is asking how long a piece of string. This and other fora have many threads asking the same question and no two answers are the same.

But in general the answer is: nothing. Businesses see adverts from godaddy and Ionos and wix and so on and decide the DIY approach will suffice.

Stick with the development, it’s far more lucrative. Build Wordpress plugins and extensions for shopify and watch the money come rolling in.

 

[Shopclicks]

But in general the answer is: nothing. Businesses see adverts from godaddy and Ionos and wix and so on and decide the DIY approach will suffice.

If you really want to build Wordpress websites, there's no reason you can't build a business from it. A lot is going to depend on how well you sell yourself. I've never spent a pound on advertising myself (I don't even have a business card). I've built and manage a lot of websites and it's all been through referrals. I've never met about 40% of my clients in person. I started my portfolio by visiting local businesses who had no website or a cr@p website.

What you charge is going to depend on the type of client you attract. Some are able to pay more than others. If you create shortcuts, you can charge less because you invest less time. Time how long it takes you to build a 5 page site, multiply it by a healthy hourly rate and add a margin. The bigger the client, the bigger the margin.

Produce good work, don't get greedy and get paid for what you know, not what you do.

 

[fisicx]

A lot is going to depend on how well you sell yourself. I've never spent a pound on advertising myself (I don't even have a business card).

I do agree but it's not easy. There are bazillions of freelancers offering WordPress sites for stupidly low prices. As long as you don't try to compete I agree there is plenty of work but you do have to work at getting that initial portfolio created. Go niche and you can do really well. A developer I know locally has got around 80 local businesses on his books. But it took a lot of pounding the streets to get them on board. It's not quick or easy.

 

[Shopclicks]

It's not quick or easy.

The best move I made was joining the Chamber of Trade and then sitting on the committee. I network with a lot of people in the digital space (photographers, copywriters, SEO experts, etc.) That's where a lot of my referrals come from. This has all lead to local council and university websites and I get referrals from my connections there. Reputation is everything.

Sometimes you make your own luck. A council website was hacked some years ago. I alerted a copywriter I knew who had contacts at the council. They weren't satisfied with the response from their developer and allowed me to fix the site. Then they asked me to rebuild the site so that they would be able to add content themselves easily. Now I manage that site and two others I've built for them.

I don't necessarily agree with going niche in this business. I think you could limit your potential. However, starting with local businesses to build a portfolio and pricing accordingly can work.

 

[Mark T Jones]

Hi all.
As a start-up web design company I'm looking to price my services to suit SMB's.
Services to include web design, maintenance and marketing.
Focusing on web design, what ballpark figure would companies be happy to pay for a brochure style website?
I'm thinking of offering the site design as a one off payment, then a small monthly fee for hosting and maintenance.
Marketing would be separate service.
All site would be on the WordPress platform.
Over 25 years experience in web developing but realise that running a web design business is alltogether different and will only succeed if the pricing structure is right.
I think a simple approach to the web deign service would more helpful for the SMB's.
What are the thoughts of the SMB's on here?
Many Thanks
Andy

You have pitched yourself into a very crowded, value-averse arena.

Every forum, networking event, business community is awash with low-price web designers who are 'targeting' SMBs. That's before you get to see the spam and the freebies from Wix, GoDaddy etc.

In a nutshell, as with any business, you need to define your customer and add value specific to them.

SMBs isn't a target market, it's a lazy cliché that encompasses 98% of all UK businesses - all with different needs and expectations.

You might well be a brilliant web designer, but to be valuable to a customer, they need to see that value in their own terms.

TLR - Find a niche. Excel in that niche, otherwise you will drown in the noise.

 

[Shopclicks]

Find a niche. Excel in that niche, otherwise you will drown in the noise.

My last completed website was for a local joiner. I'm currently working on a site for a law firm in London and a tiny home manufacturer in Australia. My next project is a restaurant in the Lake District.

What's a niche?

 

[Mark T Jones]

My last completed website was for a local joiner. I'm currently working on a site for a law firm in London and a tiny home manufacturer in Australia. My next project is a restaurant in the Lake District.

What's a niche?

A niche is what you target, not what you do.

 

[Shopclicks]

A niche is what you target, not what you do.

My target has always been anyone who needs a new or better website. What would you suggest are some niche markets in my industry?

 

[Mark T Jones]

My target has always been anyone who needs a new or better website. What would you suggest are some niche markets in my industry?

My aim here is to help the OP put some focus & targeting into their marketing, to differentiate themselves from literally thousands of others banging the same drum.

I'm unclear what your aim is, other than petty squabbles?

 

[Shopclicks]

My aim here is to help the OP put some focus & targeting into their marketing, to differentiate themselves from literally thousands of others banging the same drum.

I'm unclear what your aim is, other than petty squabbles?

I disagree that someone starting out should find a niche in this industry. Diversity is all important in growing this type of business. I'm not after a petty squabble, I just disagree with you.

The OP asked about pricing and I've spoken to that.

If I'd focused on a niche when I started, like eCommerce, booking, directories, tradespeople, finance, etc, instead of talking to any local business who needed a website, I would have had to spend a fortune on advertising to a limited market.

 

[antropy]

Over 25 years experience in web developing but realise that running a web design business is alltogether different and will only succeed if the pricing structure is right.

1. How on Earth could you have been in the industry for 25 years and not understand pricing?
2. Read a book called The E-Myth.

Paul.

 

[fisicx]

If I'd focused on a niche when I started, like eCommerce, booking, directories, tradespeople, finance, etc, instead of talking to any local business who needed a website, I would have had to spend a fortune on advertising to a limited market.

But you did have a niche: local businesses. Then got lucky with the local council. Right place right time.

 

[Shopclicks]

But you did have a niche: local businesses.

I don't see local business as niche. A niche is a business sector or type.

 

[Paul Kelly ICHYB]

I'm thinking of offering the site design as a one off payment, then a small monthly fee for hosting and maintenance.

Just offer a simple one off fee for design or a all-inclusive annual fee to include hosting.

To many designers make things difficult for themselves by talking about domain names, hosting, maintenance etc - most SME's don't care about that - they just want a website!

 

[Shopclicks]

Just offer a simple one off fee for design or a all-inclusive annual fee to include hosting.

To many designers make things difficult for themselves by talking about domain names, hosting, maintenance etc - most SME's don't care about that - they just want a website!

The requirements for every website I've built are different. You don't find out how different without talking to the client about domain names, hosting, maintenance, photography, design, branding, copy, seo, functionality, their own editing capabilities, etc.

Use the information you gather to calculate a price (time x hourly rate + margin).

Nobody just wants a website.

 

[Paul Kelly ICHYB]

OK, but have tiers, but make them inclusive e.g.
Basic
CMS
Ecommerce

Thinks like photography branding, copy etc are extra's.

 

[fisicx]

Nobody just wants a website.

What they want is better leads, more sales, lower costs....

The website is just one to the tools you can suggest to achieve this.

 

[fisicx]

OK, but have tiers, but make them inclusive e.g.
Basic
CMS
Ecommerce

Most of the time they don't even know what they want. Which is why it's difficult to set up a pricing structure.

Had one today asking about a custom plugin but once we discussed the project it was a whole website and CRM integrations they were looking for.

 

[Paul Kelly ICHYB]

Exactly, but if you have the basic menu and then add the extras on...... 'You will want leather protector with those shoes, won't you.....'

Most people do not understand what goes into a website outside of design. I have found that when you start mentioning copy and images, that's when the issues and delays start!

 

[Shopclicks]

I have found that when you start mentioning copy and images, that's when the issues and delays start!

There's no way on earth I would take on a build without knowing who's going to provide the images and copy.

 

[AndyJames2018]

ok guys - please no squabbling.
The reason form my question is down to the fact that there are so many designers out there. Where do you pitch your pricing without under selling your self? I've worked for companies for most of my career so pricing isn't something i've really had to deak with.
I did freelancing between joibs and ended up working for pennies.
I realsise a business has to be run differently.
I've recently read that one method would be to gain a monthly income for hosting, updates nad maintenance with a one off charge for the website. The customer gets a webite that is always uo to date with plugins nd content but doesn't have to pay a fortune for it.
This would allow me to build up a portfolio whilst still bringin in a mionthly income.
I;ve done larger projects in the past and again, I ended up earning very little.
Small businesses must be completley fed up with web designers. I hear so many horror stories.
So here are my thoughts.
£500 for the website
£30-£100 p/m hosting, updates and content.
Simple and brings in a monthly income to cover costs and make small profit.
Build a large enough portfolio and you have a small business.

My original post was aimed more at the small to meduim business oweners on here.
I wanted to know a figure that they felt was fair in return for a solid service that wouldn't let them donw and they could reply on.

Thanks to everyone who has replied.
It is a difficult question I know.
Thanks
Andy

 

[Paul Carmen]

@AndyJames2018 I'm not sure website prices is the question you should be asking, not at this stage, as no two SMBs or business owners are alike. Retaining customers will also often depend on them getting a tangible benefit from their website too.

Ask yourself some questions first; e.g.

• How/where are you going to find these SMB customers?
• When you do find them or they find you, why will they choose you?
• How will you ascertain what their site really needs to do for it to be successful?
• Will they all want a £500 site?
• Even if they do, they'll pick it purely on price; e.g. what if one is happy with a 4 page site and provides copy/images, another wants 50 pages, ecommerce and expects you to write the copy and provide the images?
• What if they want it to rank really well on Google, can you do the research and the SEO work to achieve that?
• What if they want to run ecommerce PPC or generate a lot of leads, can you do that?

By all means have some indicative pricing for 5, 10, 25 page sites etc and what ecommerce costs too. However, I'm with @Shopclicks & @fisicx, most site projects end up being bespoke, as virtually no two projects are ever the same.

What you need at this stage is a business and marketing plan, that will be more beneficial to your new company in the short and medium term.

 

[fisicx]

That’s still a pretty big wodge for a small business to cough up.

Trying to fix a price is never going to work as every project will be different. I’ve built sites for £100 all the way up to £2500. I’ve built plugins from £50 up to one for £4000.

 

[Shopclicks]

£500 for the website
£30-£100 p/m hosting, updates and content.

Nowhere near enough for a website build if your standard of work is good.
Hosting costs next to nothing, updates allow 30mins a month and charge separately for content.

 

[AndyJames2018]

Thanks guys -
I'm looking at this as more of a service and only aiming at the smaller business end of things.
I'm not interested in developing large websites at this point. I've been there and wore myself out mentally for little pay. I would be more than happy to refer any bigger projects to the contacts I make along the way.
I'd prefer to provide a top level of service and quality to small business and make a steady income from it.
The market is saturated and there's a lot of sub standard and unethical one man bands out there. I'd like to change that.
Andy

 

[AndyJames2018]

Nowhere near enough for a website build if your standard of work is good.
Hosting costs next to nothing, updates allow 30mins a month and charge separately for content.

I agree with you - the idea is to get a recurring monthly income from plugin and content updates.

 

[fisicx]

You may want to offer top service but is your average small business prepared to pay?

The local butcher wants a simple site to show off his business. He can do this himself using wix. Why would he want to pay you £500? What are you offering that is so different than anyone else?

As @Paul Carmen suggested, start with you marketing plan and find out if it’s viable. I stopped building sites years ago when I discovered plugins and extensions were far more lucrative.

 

[Shopclicks]

I agree with you - the idea is to get a recurring monthly income from plugin and content updates.

So, if I owned a shoe shop, you're going to build me a Woocommerce site for £500 and when next seasons stock comes in, your going to add 120 styles of shoes to my website for £100/month?

 

[AndyJames2018]

So, if I owned a shoe shop, you're going to build me a Woocommerce site for £500 and when next seasons stock comes in, your going to add 120 styles of shoes to my website for £100/month?

Shopclicks - calm down. If you read my original post i talked about a brochure site. Take Care

 

[fisicx]

Shopclicks - calm down. If you read my original post i talked about a brochure site. Take Care

And for that £500 is a lot of money. Especially when you can automate pretty much everything. A one click install and configuration of Wordpress, theme and plugins installation and dummy content creation. 10 minutes if you are working slowly.

The hard bit is getting the client to provide all the copy and images. That can take months.

 

[Mark T Jones]

The market is saturated and there's a lot of sub standard and unethical one man bands out there. I'd like to change that.
Andy

You won't change it - what you might/should do is align yourself with the honest / reputable ones - of which there are also plenty.

 

[Shopclicks]

If you read my original post i talked about a brochure site.

It doesn't matter if it's a brochure site or an eCommerce site. If you build a site for £500 you won't get clients who will pay up to £100/month to keep it hosted, updated and have content added. You could get a really nice Squarespace or Wix site for a lot less than that (of course they won't rank for anything but they don't know that).

If you want to compete with Squarespace & Wix, go ahead and offer cheap builds. If you want to make a living from building websites, then you need more up front and less ongoing.

 

[Paul Carmen]

Shopclicks - calm down. If you read my original post i talked about a brochure site. Take Care

I get that you'd like to change the market, but how? Most local businesses and SMEs don't need a brochure site, certainly not a £500 one.

The problem with most brochure sites is they're a total waste of money for the business, in the same way as physical brochures would be a waste of money for the majority of businesses (unless they had a sales team or brochure based outreach sales plan).

Brochure sites are seen by virtually no one, and a vanity project at best if large amounts of money are spent on them.

What most local businesses need is visibility; e.g. free or cheap local marketing that works. Now a brochure site may help, but only if it's researched well and ranks for the local services/products/offerings the business needs to sell. That requires research, a proper NAP setup, great copy/content, good technical SEO, a local marketing plan, site linked up to a great Google Business listings, local citations, reviews etc.

What most larger scale non local SMEs need is even more marketing to drive leads, sales etc. They need all the the local business needs, but with area/geo pages on top, potentially more service pages, or an ecommerce site on top of this. They then need to ensure these pages rank, they link up with an online/offline marketing plan that can be scaled etc.

 

[Auto_work]

OP, I've been doing pretty much what you're thinking since 2018. I advertised myself to local small businesses and targeted start-ups. My first customer's project, I quoted £600 for e-commerce website!! They knocked it down to £550!!! (They didn't give me any time to research plugins and some premium themes that might be required and came with extra cost!)

The conflicts I had with my customer was they wanted a supermarket looking website kind of into your face logo and popping colour while I prefer clean and minimal website that users can focus to products and checkout. I ended up with endless loop of modifying everything from logo, menu, search bar. They wanted everything big and into your face...
SEO which wasn't include in the deal they wanted me to try to improve. In the end I got paid half of £550 and I paid for their premium theme!! I've got customer phobia until now...

So now I'm keeping my full-time job and helping friends who starting businesses build their websites like I did before 2018. Most of my friends don't have the funds to pay so I'd built their websites for free. Some understands there's a cost that I paid for them as a good friend, some thought the website is free altogether, some see me as a valuable skillset for their businesses and asked me to partner with them.

May be I'm the unluckiest web designer in the world. I hope you have a better luck than me and hope this help you come up with a plan that cover all the risks you might face.

 

[Mark T Jones]

May be I'm the unluckiest web designer in the world. I hope you have a better luck than me and hope this help you come up with a plan that cover all the risks you might face.

I suspect you are similar to 80% of the one-man-bands out there.

 

[Paul Kelly ICHYB]

You price for your market and/or you price for your (believed) worth.

 

[AndyJames2018]

OP, I've been doing pretty much what you're thinking since 2018. I advertised myself to local small businesses and targeted start-ups. My first customer's project, I quoted £600 for e-commerce website!! They knocked it down to £550!!! (They didn't give me any time to research plugins and some premium themes that might be required and came with extra cost!)

The conflicts I had with my customer was they wanted a supermarket looking website kind of into your face logo and popping colour while I prefer clean and minimal website that users can focus to products and checkout. I ended up with endless loop of modifying everything from logo, menu, search bar. They wanted everything big and into your face...
SEO which wasn't include in the deal they wanted me to try to improve. In the end I got paid half of £550 and I paid for their premium theme!! I've got customer phobia until now...

So now I'm keeping my full-time job and helping friends who starting businesses build their websites like I did before 2018. Most of my friends don't have the funds to pay so I'd built their websites for free. Some understands there's a cost that I paid for them as a good friend, some thought the website is free altogether, some see me as a valuable skillset for their businesses and asked me to partner with them.

May be I'm the unluckiest web designer in the world. I hope you have a better luck than me and hope this help you come up with a plan that cover all the risks you might face.

lol - I don't think you're the unluckiest web design in the world, but I do completely sympathise with you. I've not been in the 'freelance' sector for almost 20 years and ut seems it hasn't changed much. The problem is NO ONE (customers) takes web design seriously. They simply don't understand how time consuming and technical it gets. You wouldn't get a plumber working for pennies.
I guess we undervalue our skills.

 

[AndyJames2018]

I get that you'd like to change the market, but how? Most local businesses and SMEs don't need a brochure site, certainly not a £500 one.

The problem with most brochure sites is they're a total waste of money for the business, in the same way as physical brochures would be a waste of money for the majority of businesses (unless they had a sales team or brochure based outreach sales plan).

Brochure sites are seen by virtually no one, and a vanity project at best if large amounts of money are spent on them.

What most local businesses need is visibility; e.g. free or cheap local marketing that works. Now a brochure site may help, but only if it's researched well and ranks for the local services/products/offerings the business needs to sell. That requires research, a proper NAP setup, great copy/content, good technical SEO, a local marketing plan, site linked up to a great Google Business listings, local citations, reviews etc.

What most larger scale non local SMEs need is even more marketing to drive leads, sales etc. They need all the the local business needs, but with area/geo pages on top, potentially more service pages, or an ecommerce site on top of this. They then need to ensure these pages rank, they link up with an online/offline marketing plan that can be scaled etc.

My OP was asking about pricing structure!

 

[AndyJames2018]

Thanks everyone who replied. I think i've got the gist of what is offered out there.
Nothing seems to have changed much in the past 20 years or so.
Some good advice, some bad. Didn't really get the answer I was after but thats ok.
Good luck everyone.
Andy