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Value-based Web Design Vs Hourly Rate

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What is value-based pricing?

Value-based pricing is a flat-rate pricing model where the price of a project is determined over the course of a consultation in which we ask you (the client) a range of questions, the most important of which is: “What is your ultimate business goal?”.

Two of the most popular answers to this question are: “I want to make more sales”, and: “I want to increase my traffic and increase the popularity of my brand.”.

The reality is: a website is meant to do NEITHER.

Increasing sales, or the popularity of a brand is the job of a marketer, and it is a full-time, often very expensive endeavor. This goes beyond the scope and cost of building a website.

At this point, how can we determine the value of a website? By defining its objective.

A shopping website’s objective is not to increase sales, but rather to close them, and its popularity is not influenced by how well its built, but by how well it retains your existing visitors and converts them into customers or clients.

This is done by crafting an outstanding, frictionless, friendly user experience, which can only be achieved by tasking dedicated professionals, from fields that include branding/design, marketing, and web development.

Value-based pricing takes into account the skills, and overhead costs of turning your project into reality, no matter how long it takes to go from concept to inception.

Why pricing an entire web design project on an hourly basis is bad practice?

Imagine two professional contractors charging the same fee for the same work:

The first contractor likes to take his time, he takes pride in his work, he’s more attentive, and therefore will take longer to complete the job, which translates into a bigger bill for the client.

The second contractor has been in business longer, has more experience, his attention to detail is comparable to the first one, but his confidence, skills and experience allow him to complete the job in half the time, at the same hourly rate.

The resulting bill will be half compared to his competitor, even if the quality of the labor, and the results are identical.

What just happened in this scenario is that the most experienced, exponentially better contractor has been effectively penalized for being the better option.

Hourly-based pricing is not a realistic method to pricing web design services

Conversely value-based pricing is the best way for us to price your project, and ensure that we take time and care in crafting the best quality experience for your business.

Value-based pricing versus hourly work rate

Value-based pricing versus hourly work rate

Value-based pricing versus hourly work rate

Value-based pricing versus hourly work rate