Starting a web development business

[sam754]

I've had a few people ask me to do their websites and I'm thinking about starting a part-time web business setting up e-commerce sites for local businesses. I'll most likely use osCommerce as a platform.

I'd appreciate hearing from others who are doing this. I'm trying to get an idea for what to charge for these websites. I'll start out doing sites for free or at reduced rates to build a portfolio, but once things are up to speed, I have no idea what a fair price is. I know that, with the abundance of inexpensive e-commerce solutions out there (Yahoo shops, Amazon, Miva, etc.), things are pretty competitive for private web developers and prices are lower than a few years ago. I've heard of guys charging anywhere from $300 to $1k for a simple e-commerce site.

I'd also appeciate any marketing suggestions - for example, do you use brochures, or perhaps bring a laptop with a local install of OSC for client demo purposes?

Finally, if someone could give me an idea of typical resale hosting wholesale prices and end user prices, that would be great.

Thanks in advance!

[vwebworld]

Pricing is an interesting subject. Yes, there are
loads of people that will do a site for $50 to $250...
even FREE and those that may charge $1,000 to $5,000
depending upon the site's complexity and other services.

Pricing is a bottom line issue as well as a perception
issue. If you pay almost nothing for a product your
perception is the quality of the product is lower than
if you paid a higher price.

Pricing for setting up an oscommerce site will depend upon
how much customization is needed to make the site
look unique, how much you need to upload the product,
pricing, coupon codes....etc.

You time is worth $$. So the bottom line is think about
how much time you'll devote to a project and how much
$$ you need for that work effort.

~Roland

[sam754]

Thanks for the feedback.

The actual website development wouldn't take too much time, as I envision it. I would prepare a selection of layout and template choices from which clients would select. Graphics work would be simple, consisting of logo integration and minor cosmetic mods. My focus would be on doing simple sites with a quick turnaround time.

Since most of my clients would be small business owners who are not very tech savvy, the bulk of my time would be handholding...walking through everything with the clients, making sure they know how to upload products, maintain the store, optimize photos, etc., as well as addressing questions and issues as they come up. I know this can eat up a lot of time, depending on the client, and I want to make sure that I cover myself, while still offering reasonable prices and good service.

I suppose it would be wise to charge a flat fee for the website and a basic amount of support, then charge on an hourly basis for additional requests.

We could also offer additional services like product uploading or webmaster duties, SEO and more graphics customization (which I'd outsource).

Anyway, I'd be interested in knowing what kind of time other developers devote to each client in terms of meetings and ongoing follow up.

Thanks.

[vwebworld]

Other costs...
domain name, hosting, SSL certificate, credit card
processing (merchant account).

The hand-holding can be significant especially geting
the oscommerce store set up - photos, pricing,
product descriptions, shipping terms...etc.

(been there) ~Roland

I include 6 months of updates after a site is complete.
Then charge $x per year for site maintenance after that.

[bhartzer]

I'd appreciate hearing from others who are doing this.

The competition in this field is extremely tough--there are literally thousands upon thousands of companies, firms, and individuals that do this.

What you need to do is specialize--specialize in one particular type of website or industry. Otherwise, you'll need to provide personalized service and work with local businesses in your area.

[sam754]

Yes, I know it's very competitive. But there's an endless supply of small businesses and every one wants a website, whether they need one or not ;) I'm not expecting to make a living doing this...just a few websites a month for a little extra income would be fine. My cousin is doing this and is getting lots of business through word of mouth, though he's only been charging $300.

My emphasis would be on personalized service for local businesses (those I can physically visit) and being available for clients (as long as the time demands are within my capability), which might not be the case with a lot of other developers.