There’s only one sensible method to charge for website design and development: you establish a cost for your services and then mark them up to a price the market can afford. This is similar to how other professionals change, whether a lawyer, doctor, plumber, etc. Our web agency is based in Los Angeles so we have labor costs for each team member as well as typical business overhead such as office expenses, rent, insurance, bookkeeping, taxes, etc. Based on that, our hourly rate (as of January 2016) is $125 for most services.
Web agencies that use offshore staff have lower costs and so their hourly rate may be lower. Freelancers, one-person shops and website brokers can also be more competitive on price but may have other challenges such as communication, reliability and quality. When a client brings their project to us, we determine how many hours it will take and charge accordingly. So if a website takes 75 hours to build, that translates to a billable cost of $9,375.
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