Costs of Building a Functional E-Commerce
Site
Building an e-commerce site is not inexpensive.
But for established companies and brands,
the benefits can be almost immediate.
...................
Web site development costs climbing
You need to build a significant presence
on the Web now, because costs will continue
to climb. Costs for Web development are
up once again in 2000, according to the
July 2000 NetMarketing Web Price Index.
The average cost for a 'small' website
has risen to $113,500 (up 46% from $77,500;
September, 1999), including the following
services:
- Look and feel (design/site mapping)
- Hosting (for secure transactions)
- Publishing tools
- Shopping cart
- E-commerce solution for the purchase
And once you get to a larger sized website,
the cost skyrockets to $608,000, up 50%
from September, 1999. The 'large' website
would include the following services:
- Server hosting and maintenance
- Publishing tools
- Custom programming/development of
Java applets, locator and Shockwave
files.
- Search engine
- Database development (for its content
and its users)
- Secure transaction capability
- Shopping cart system
...................
A category-leader site
even more
The median 1999 price quoted for CubicleMax
by the leading US developers was $479,250,
with a high-end of $1.2 million.
...................
Why the higher prices?
Several factors may be responsible, from
the continued rapid growth of the still-young
industry of Web development to the higher
cost of doing business to greater expectations
from clients.
There is increased expectations on the
client side. Chris Swain, head of production
at New York's R/GA Interactive, said:
"The bar is raised on what
a company has to build to get something
acceptable into the market. Our
clients have now been around the block
a bit."
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How Our Fees are calculated
We do not bid a flat rate for large web
site design projects. This is so because
there are so many variables that simply
cannot be predicted accurately. In addition,
our experience has shown that once a project
begins, there are many "adjustments"
and amendments desired by management and
others, which cannot be fairly absorbed
into a flat quote for a project.
The rationale behind our pricing is based
upon rates contained in The Web
Price Index Rate Card, by Matt
Carmichael and Mary Morrison. The rate
card is compiled from data surveys of
design businesses nationwide.
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Down to the Minute
In order to accurately track the time
spent on the web design implementation,
we use a proprietary system which tracks
actual time our employees spend within
each program used. In this manner, the
exact time spent for each task is accurate
down to a one minute interval. This way,
you don't get over-billed for a service.
The project tracker is aware of more
than 200 popular applications used in
everyday work, among which are illustration,
page layout, image editing, web design,
word processing, 3D modeling, animation,
CAD, database, spreadsheet, presentation,
sign design, scanning and optical character
recognition applications.
After a project is defined, the project
tracker runs and begins working with the
applications, as they are launched and
open and close documents.
It is possible to view the project statistics
and see which documents were open, time
spent on them and amount due by the client.
Also, project reports can be printed,
and projects can be archived for future
reference as well as exported to any database
application that supports text delimiter
files.
Are you ready
for IMC to take you on the web?