[neilp]

I am sure this question has been asked before but i wanted to get a good idea how to price e-commerce projects.

I have almost finished an e-commerce store built using Opencart for a friend and have only charged her £400. But i have been asked to develop another two for two different clients and £400 seems a bit low. I was thinking more like £1000 - £1500?

What do you reckon?

Thanks,

-Neil

[bocaj]

How much does a car cost? It's too vague a question to answer.

I always did the: Time x $/h + 20% = Quote

(that's a vague calculation, i always made a modular pricing quote, core + extra etc. - otherwise you'll get a client asking for an ecommerce site but not willing to pay for a database )

[Enthused]

bocaj, on 17 August 2010 - 12:19 PM, said:

How much does a car cost? It's too vague a question to answer.

Yes, and how much is the car dealer willing to sell it too you for?

You give a price on what you think your quality of work is worth.

[neilp]

bocaj, on 17 August 2010 - 12:19 PM, said:

How much does a car cost? It's too vague a question to answer.

I always did the: Time x $/h + 20% = Quote

(that's a vague calculation, i always made a modular pricing quote, core + extra etc. - otherwise you'll get a client asking for an ecommerce site but not willing to pay for a database )

Well don't you have a starting price then? Like "We build e-commerce site starting from £xxxxx"

I mean would you build me a jewelery store with all the features of opencart for £400? Opencart being the car so to speak?

[bocaj]

How many hours did it take you?

Edit: I've never done a static site for under £600 (pro bono exempt). So no.

I think you're worth way more than you realise or you're just very conservative. A misconception is that small business's mean small money.

Small business, local café's, restaurants etc. Still run on £100k+ turnovers.

[Enthused]

Just look at what other web hosting companies offer. See if your work matches their quality then you have an idea of a price.

[neilp]

bocaj, on 17 August 2010 - 12:36 PM, said:

How many hours did it take you?

You know what.....why didn't i just think of that?

It took me four weeks 160hrs and at £15 an hour ........ £2,400!!!!!!

Mind you i know i can do it a lot faster next time so should make a good profit even if i take the....er....£400 quid of it!

[bocaj]

neilp, on 17 August 2010 - 12:45 PM, said:

You know what.....why didn't i just think of that?

It took me four weeks 160hrs and at £15 an hour ........ £2,400!!!!!!

Mind you i know i can do it a lot faster next time so should make a good profit even if i take the....er....£400 quid of it!

Why do it faster, if you can work twice as fast. you've just cut your profit in half :/ Take an extra coffee break, have a paid working lunch in the park. Just because you can halve your price, won't mean you'll get twice the work.

I'd seriously consider atleast doubling your hourly rate soon, or in the near future. Most Companies pay £50 - 100/h for financial and legal aid, why should marketing be any different? It's a fundamental part to a companies success. How will they survive if no one knows they exist?


Always add 20% (contingency) i generally refunded most of that at the end of a project, which also leaves the client feeling like they've had a bargain

Just believe you're worth the money, and they'll pay it. Gas Man theory (Show confidence and indifference; you're there to do a job, if they don't pay it who cares, someone will).

[neilp]

bocaj, on 17 August 2010 - 12:55 PM, said:

Why do it faster, if you can work twice as fast. you've just cut your profit in half :/ Take an extra coffee break, have a paid working lunch in the park. Just because you can halve your price, won't mean you'll get twice the work.

I'd seriously consider atleast doubling your hourly rate soon, or in the near future. Most Companies pay £50 - 100/h for financial and legal aid, why should marketing be any different? It's a fundamental part to a companies success. How will they survive if no one knows they exist?


Always add 20% (contingency) i generally refunded most of that at the end of a project, which also leaves the client feeling like they've had a bargain

Just believe you're worth the money, and they'll pay it. Gas Man theory (Show confidence and indifference; you're there to do a job, if they don't pay it who cares, someone will).

Thanks for the advice, very much appreciate the replies.

- Neil

[pbul2004]

What i have done in the past if just start *from £1200, after looking at all the other web companies in my area thats what they tend to do. Then depedning on what they want you add more on top of that then.

Maybe im doing it wrong as well?!

[Dx3webs]

We do more hosting than designing but a full e-commerce setup with custom design would be somewhere in the region of £1200 - £1600 depending on what sort of additional functionality they require. For magento £175 of that would be year 1 hosting and £175 per year there after.

I like the idea of 20% contingency... will have to try that.

Andy

[rallport]

You also have to take note on the quality of the work. For example there's a guy who posts in SEO forum asking tons of basic SEO questions, yet on his website he's offering SEO as a service.

IMO, if you're using pre written software such as opencart and simply skinning it, anything over £1000 is getting a bit on the steep side. Maybe if there are tons of bespoke features added then maybe, but a plain old install of opencart with a bit of theme isn't much work at all.

I'd also be careful how you phrase things on your website too. E.g. saying you build ecommerce sites when you simply use a pre written solution is technically true

[davecopland]

A lot depends on what software you are using to develop the Ecommerce site. There are so many free open source software out there like Zen Cart that do most of the work for you. If you use one of these carts, I don't see how anyone can charge more than £1000.

[rallport]

davecopland, on 29 August 2010 - 05:17 AM, said:

A lot depends on what software you are using to develop the Ecommerce site. There are so many free open source software out there like Zen Cart that do most of the work for you. If you use one of these carts, I don't see how anyone can charge more than £1000.

Yer, totally agree. The more I read this forum, the more I think that the majority of people seem to think ecommerce development is simply using opensource software.

[oneeyedpauly]

davecopland, on 29 August 2010 - 05:17 AM, said:

A lot depends on what software you are using to develop the Ecommerce site. There are so many free open source software out there like Zen Cart that do most of the work for you. If you use one of these carts, I don't see how anyone can charge more than £1000.

Surely a £1000 quote is still based on the time it takes to build the site. I can build three of four WordPress sites in the time it takes me to do a Zen Cart site, I don't see why I should charge less for my time just because I'm using Zen Cart.

[benlyon]

Hey

If your looking for an external company to help you on E commerce I have a friend who owns a E Commerce site, the website is http://www.plugandpl...uk/southampton/ you will be able to manage all your e commercmaterial through the website so it may be perfect for you.
You would have to contact them if you wanted price but I know the guy and they are very reasonable


Hope this helps ( Let me know if it does)

Ben