You do it pretty much the way I do it, and it's worked well for me.
The only thing I do is that I break down the site into its various sections so that they can see the cost of each item. You know, "search $200, layout $500, self-admin $1100, etc." (NOT ACTUAL FIGURES.)
Then I explain the hourly rate at the bottom of the quote.
If it works, why screw with it?
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