Website design & development prices vary because agencies are trying to make a different level of profit, have a different level of skills and / or have a different understanding of clients requirements. It is not unheard of for an agency to quote one price at the beginning of a website development and for the costs to triple at the end.
This generally comes down to inadequate planning from the start and one of the key reasons that we always recommend putting in place adequate budget at the start of a project for initial consultancy and documentation.
Is price a true reflection of an agencys quality?
There are some good digital design agencies out there that are inexpensive and other bad agencies that are expensive (even more so because they deliver poor quality products doubly bad value). Value does not come down to low cost, value comes down to getting what you want or need at a price that is beneficial to your business after all, if every time you invested £1,000 into your business, it returned £2,000 that is good value, even though you are spending £1,000. Yet, if investing £10,000 was to return £20,000, that better value even though its more expensive!
In general, you get what you pay for and a £150 website redesign (as we have heard quoted) sounds suspiciously low. Is the work being done in the UK? Do they have a good understanding of what is required? What is the quality of their work like? For a potential client, if they have received a low quote that becomes their price anchor, then all additional quotes that might be in the thousands can seems like bad value, but can offer much better value when viewed from a return on invest perspective.
Perhaps a best first step is to ask for a relevant professional reference from the agency. Make sure the website design agency matches the referees turnover levels to yours, so that you have a realistic comparison. E-creation has created websites for SME's for under £2,000 and also created websites for larger corporations with budgets over £100,000. References must therefore be carefully selected in order to provide realistic expectations.
It may be difficult to image how there can be such a difference in the cost of designing a website, but put simply, a larger budget allows more time and resources to be allocated. Many smaller businesses have till shock at the initial consultancy costs for the start of a project. However, the initial consultancy stage is incredibly important, creating a stable platform for the development of:
content
design
code
delivery
Without adequate consultancy, discussion and documentation, most projects are doomed to fail. Larger projects many have week and even months allocated for initial consultation and documention.