Experienced Website Development Company in Melbourne

1
Ultimate Guide for Web Developers around Pricing
Strategy

• The success of your business depends on how you
  work on the financials regarding your development
  and design work. Imbalance can be highly
  dangerous for your business when you charge too
  much for your development work, you may end up
  never getting a client and on the other hand,
  when you charge too little, you run the risk of
  never covering your operating costs. Running a
  successful business needs proper and strategic
  thinking about your services and resources.
• How you think about and calculate the money that
  you charge is actually as important as how much
  you charge the client. There is no fixed formula
  that you can work on to calculate the right
  amount that you should charge your client for
  your development or design work, but a checklist
  of some parameters can definitely help you remain
  on the right path and get to a thought-through
  and strategic figure that works for both your
  company and your client.Each parameter has its
  pros and cons and we have tried to pull together
  some of that as part of our list below.

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• Fixed price
• Also referred to as pricing based on a project, a
  fixed price approach helps you to charge a flat
  fee to the client for all the work that you do as
  part of a project with them. In this approach, a
  client is usually charged a flat fee or a total
  fee instead of being charged by the hour.
• In this approach, you will have to get a clear
  idea from the client on what the magnitude of
  work is on a project before you can calculate the
  reasonable flat fee that you should be charging
  the client. How you make a decent start on a f is
  by understanding the overall scope of the work
  needed to achieve the required outcomes of the
  project and coming up with a minimum amount of
  money to charge the client for that amount. The
  minimum amount is generally the money that will
  help you break even on the project. Coming up
  with a minimum amount of money also lets you have
  a bit of a play if the scope changes during the
  course of the project a scenario that is very
  common with development and design work for a
  client as business requirements and market trends
  change.
• It can be challenging to calculate your minimum
  fixed price for the first project that you work
  on, but as you mature in the market and complete
  more projects for a variety of clients, it
  becomes easier for you to gauge scope on projects
  with similar kind of work you have completed in
  the past and come up with more accurate figures
  at the state of the project. Of course, being
  more accurate at the beginning brings in more
  confidence in your work for the client, which is
  always a win-win situation.Hourly price or
  time-based price 
• The most common type of pricing model in the
  development industry is called the hourly based
  pricing model also referred to as time-based
  pricing model. In this model, you charge your
  client based on the number of hours you work for
  that client. This model comes in handy mostly
  when you work for an agency that involves
  different skill sets at different times in a
  project. For each resource you dedicate to that
  project, you work out an hourly rate with the
  client. Towards the end of the project when all
  the required work on the project is completed,
  you multiply the hourly rate for the resources
  provided for all the development and design work
  with the number of hours required to complete the
  work to calculate the total amount of money the
  client owes you.
• If as part of delivering the work, you ended up
  hiring more resources, you should also take into
  account their fees to come up with the hourly
  rate, so at the end of the project after paying
  all the resources, you are left with some extra
  as profit.

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• Value-based price
• As you deliver timely work to the client, it is
  important that your work is appreciated for also
  the quality of work and the expertise you bring
  to the table for the client by not just
  delivering what is asked but coming up with
  creative and better solutions during the course
  of the project. Both the approaches discussed
  above, fixed price and hourly price, are heavily
  dependent on the tangible services you deliver to
  the client, this pricing model is based on your
  consultancy skills and think about other
  intangible things you provide to your client
  thought leadership, creative solutions,
  time-saving solutions, other business process
  improvements, etc.
• With value-based pricing, coming up with a fixed
  price at the beginning of the project can be
  challenging because the pricing can vary based on
  the skills, expertise and experience you share
  with the client during the course of the project.
  This pricing model is very beneficial when you
  have previously worked on a number of projects
  for a client and they understand the level of
  expertise you can bring to the table. In such
  cases, the client often comes to you with their
  business problem and works together with you for
  an appropriate solution. Of course, there is more
  room to play with in this case for the pricing
  model.
• Regardless of which pricing strategy or model you
  use, what is important for you to understand is
  that pricing is subjective. What this means is
  that a formula that you will find works great for
  one client may not work that seamlessly for
  another client.
• As long as the pricing strategy you come up with
  is measured correctly against the type of work,
  the type of client you are working with and the
  maturity level of your skill or your business,
  you find yourself in a great situation and
  relationship with every client you work with.
• Original Source http//designrfix.com/web-design
  /ultimate-guide-web-developers-pricing-strategy