The businesses are now getting familiar with the importance of websites and web apps for their long-term success. In this digital era, it is essential for the businesses to development website or a web app to effectively access their customers. The demand for website web app solutions increasing rapidly that also raise the cost of development.
When it comes to the development of websites or web apps the pricing is one of the major factors in the decision making of the whole development process. There are many of the options available in the market for website development and app development that you can use to create your own website or web app. In this article, there would be a discussion about the pricing of website and web app development and the factors that have an impact on the overall website and web app development cost.
The pricing of the web or web app development services very much depends on your requirement and type of app or website you want to develop. Here are some of the factors that have a huge impact on the pricing of your web design and development, understating these factors would help you to keep the finances of your business in control.
Major Factors Affecting Development Cost
Scope of Project
The scope of your project defines all of the functions and features you required on your website or web app. The more features you want the more will be the cost of development. So you should know that the use of advanced features can not only increase your development cost but you will need more time for the execution of the project.
Complexity of Development
Mostly the features that are used routinely in the website or web app are not very expensive. You can also get many of the features online free of cost. If you want customized feature and functions on your website or web app than the technical complexity of your project will increase that will also raise the prices.
Designing is one of the most time consuming and costly phase of web development and web app development. In the designing phase, you have to create the user interface by using pre-build or customized templates. The customized templates of the UI designs are more expensive than the pre-build templates.
It is good if you have more flexible deadlines for your website or web app tasks because the short deadlines projects are more costly. So, it is very important to keep your schedule of the development project to minimize the risks and cost.
The development rate is different in all companies. The big brands will charge more money because of their positive reputation in the market. While selecting your website or web app development service provider should consider the brand of the company, most of the times they just charge more money because of their positive brand image.
The cost of your development is very much affected by your non-functional requirements. For example, if you want a website with a high load system, it will cost you more money than the website with basic functional requirements.
The fixed pricing model and non-fixed pricing model are said to be the most used models. It is believed that the contractual projects with non-fixed price are less expensive because you have to pay for the features that you actually required and fixed pricing is a good option for small projects with defined scope and functionalities.
Countries Development Rates
The rates of development vary in all countries. The location has a huge impact on the pricing of development. For example, the cost of website and web app development in America is more than the cost in India. So, it can be said that the region or country you are getting some service or hiring someone from also have an effect on the prices. Analyzing the rates of different countries, you will find out that the developed companies’ rates are much higher as compared with under-developed or developing countries rates. North American freelance developers charge the highest prices for development.
In North America states the USA and Canada, the per hour rate of freelancing ranges from $100 to $250. In India, the per hour rate of freelancing ranges from $20 to $50.
You can see the difference between the per-hour rates of both countries, the rate in the American states are literally 4 times the web development services rates in India. I would recommend if you are going to develop a large and highly functional website or website then you must go for American or other developed countries services such as Europe and Australia because they are more reliable. For the website with basic functionality and features you can go for India (there are some good web app development and web development service provider, you have to make good research to find the best service provider).
There are many service providers available, who are offering different web development services to clients. The pricing rates are different in all web and app development companies. The companies with big names and solid brand images keep their rates higher in the market, as compared with the small-scale companies.
There are three classes of companies: “extravagant class”, “moderate class” and “Small Class”.
These types of companies do their business with a particular class of customers who have a huge budget and can spend around $200K on their projects. Their average cost for the web development is approximately $500K and the salary of their contractors’ or employees is in six figures range. Their suggestions are typically depending on a lot of fuzz with the web development rate from $400/hour – $800/hour. These companies are more likely to focus on custom web programming. They are very organized and it is ensured that your web project is would be completed within the deadline, they tend to progress or manoeuvre gradually and their process of development needs a huge amount of fluff. Big development companies charge higher prices for development services. If you really have lots of money to spend on your development, these kinds of big companies will be the most agitable option for you.
These companies have a reasonable and moderate operation and spending. Their average number of employees is around 20-30. Their offers are typically based on the predictable hours at the web development rate from $100/hour – $200/hour. These companies may or may not be systematized, based on their company management quality. The process of development is usually very fast and they tend to move rapidly on any web development project. When you get your web and app development services from this kind of company, your project outcomes and credibility are based on the management’s ethical standards or company owners, design ability, experience in development, SEO practices, usability awareness, development speciality, etc.
These web development companies run their development process on a very low budget and typically has less than 10 employees including the company’s business owners and partners. Their offers are generally depending on the projected hours at the rate ranging from $75/hour – $180/hour. This kind of companies is normally not organized. They are not suitable for large web development or web application projects. While getting the services from this kind of company, your project result is based on the management’s ethical standards or company owners, design ability, experience in development, SEO practices, usability awareness, development speciality, etc.
In the web development market, there are many varied pricing models that you can use depending on your needs. However, the most dominant pricing models are – Value-Based Pricing, Time and material and fixed price model. The pricing model also has a huge impact on the overall cost of the project.
Time and Material
In the time and material pricing model, you are charged based on the resources and time you needed for a specific project. This is said to be an effective pricing model for the projects with a huge scope that cannot be entirely defined and changes are obvious. This pricing model is applicable to when the Agile development methodology is required in the project.
In a fixed pricing model, the overall cost of the project is decided in the contract and all of the project requirements are to be fulfilled by the client within the budget. The payments for the project are made on achieving the deliverables and milestones. It is the most recommended payment method for projects where you have the finite and clear scope. The fixed rates are attached to materials and time but in an indirect technique. The company guesses the time and resources required for the project and after that the bid to do it for less time and generate a good profit. This method of payment is mostly used for discrete tasks or small projects, but it is difficult to make it work for complex projects. Fixed pricing is an ideal option for projects with a clear and finite scope.
The likely solution to get a precise estimation for the custom project cost lies in an idea known as value-based pricing. There are two ways you can look at value. The first is the value of this project to the organization, and the second is the value the resources needed to generate the desired results. It is very hard for a business to recognize the ROI value before the project is actually started, we have to focus on using the second value calculation method. The knowledge behind the use of working capital is that a business must have more assets than their liabilities. The variance among these 2 figures is known as the working capital. Visibly if some company has more liabilities than assets then it is in big problems. As far as the value-based pricing model is concern goal is to make certain your capital so that you don’t delay any opportunities for growth or hurt your obligations of cash flow for successfully accomplishing the project.
When it comes to web and app development the trend of freelancing is increasing rapidly. The freelancers in the market have different financial expectations, and their freelancing rates also vary based on their experience and knowledge and some other factors like spending habits, financial needs and cost of living. The freelancing rate of development ranges from $50/hour – $250/hour depending on the country and overall experience of the freelancer. Freelancing rates of website and web app development are different in all countries. The organization level or a project engagement ultimate result differs depending on the experience and person’s development, and level of skills. It is highly based on the ethical standards of the developer.
If the freelancer is already doing some full-time job and do the freelancing as a side job, there is a possibility that he will run into time limitations, and will leave the work agreement in the middle of the project. In these types of conditions, the freelancing of the web development services become hard and sometimes it also results in the project files loss.
Many website developers and designers start their freelancing business and quit their business in a couple of years because of the heavy workloads or they come across the other challenges of time management and client deals. As far as I know that if a freelancer does not have a minimum of 5 years of experience in freelancing business, there is a lot of chance that your project will be ended up by freelancer at midpoint without finishing it. An experienced freelancer developer knows how to manage his time and how much workload he can manage single-handedly; yet, if he is experienced in the field of web or app development, he may be an efficient candidate for consulting.
The freelance has become a huge industry and there are a lot of talented and highly skilled individuals are providing the freelancing services for web and app development. You can try your luck and there are very chances that you will find some experienced and dedicated freelancers for web project management.
Complexity of project
The websites or web application with basic functionalities are usually small business websites/web apps or landing pages. These websites/web apps are just created to make a digital presence for displaying their products or services. These websites/web apps can be a page landing page endorsing something or encouraging visitors to buy something or small business websites/web apps containing pages like services, homepage, contact us or about us page. It is not compulsory but basic websites/web apps normally contain around 1-20 pages. When it comes to development, basic technologies such as CSS, HTML, and PHP are used in basic websites/web apps.
Similarly, the backend typically includes simple functionalities such as user registration or content update. The websites/web apps with basic features are not very expensive. It is also easy to operate and manage. The basic website and app development have predefined template layouts; Small online catalogues; and Additional or Widgets features to the current web apps. The simple features and basic technologies used in this kind of websites are less costly as compared with the other options. You can get the basic development services from any local company or some known freelancer.
The intermediate level website and apps are normally made for middle to large business and organizations. They have a huge audience; a high number of pages and they also contains some advanced functionalities for the users and admin. This kind of website and apps are built with a wider viewpoint of branding and marketing. They are planned to indorse the name of the brand and increase brand loyalty. Numerous large corporate websites come with incorporation with web apps such as a basic product configurator or e-commerce store.
The customers’ UX and UI describe the users’ journey on the website or apps and guarantees it is friendly and fun to use. For instance, if your purpose is to motivate the customers to purchase a product from website and apps, appropriate design for UI/UX will verify it makes the purchasing process easy and swift throughout their overall experience and journey at the homepage. The large website and apps have big requirements, not just about the overall performance of UI and UX. They required to accommodate a large audience and have exclusive business needs, and to achieve this – they want sophisticated technologies such as Marketplace-based web apps; Modules for existing web apps and E-commerce stores.
The high end featured and innovative technologies used in the intermediates websites and web apps also increase their overall cost of development. You can get the intermediate services from some well-known company or hire some permanent staff for the development and management of the website and web apps.
They typically include advanced features like real-time synchronization, complex backend, audio/video processing, custom animations, integrations with third-party services, etc. This kind of websites and web apps may be made to systematize procedures in a business with more or less 200 employees. They may be the minimum viable product of custom web apps or websites, demanding something like a team and 5-12 months where the amount of QA and Web Engineers differs based on deadlines and requirements. These websites and web apps are typically made for well-known companies. Use of advanced features and technologies adds to the overall cost of development. They are component-based, custom, mission-critical and distributed web apps and design of individual UI/UX, typically developed by using the enterprise architecture.
This kind of websites and web apps are meant to automate processes of business in the organization and bring a constant profit to their proprietors. Among the common web apps are Automated billing systems, Email marketing systems, Customer support & call centres applications and Payment processing apps. This kind of web apps needs around 12 – 24 months of teamwork. The advanced featured and latest technologies used in the advanced websites and web apps also increase their overall cost of development and this option is only suitable for large websites with huge audiences. You can get advanced services from some well-known company or hire some permanent staff for the development and management of the website and web apps. For getting advanced web and app development services, you must have a flexible budget, so you can go for a big and trusted brand that ensures 100% success of your project.
Types of Development
In this era of digitalization, all brand wants their online e-commerce store because for many of the consumers online shopping has become their primary source of purchasing goods. The e-commerce portal cost is varies depending on the functionality of the website and other features. There is a wide range of factors on which the cost of development depends– as it allows the customers to purchase the product too complex functionalities such as visual try-on, product configurator, a personal recommendation based on AI, etc. Some of the most common e-commerce portals features are as follow.
Shopping Cart: It is one of the main features of an e-commerce websites or apps. It allows the purchaser to save goods they want to buy before checking out.
Order Management: It is another feature that is an essential part of any e-commerce portal is the order management system. It works as a control panel that makes it easier to manage and look after the orders of the customers.
Payment Gateway Integrations: These are accountable for processing the transaction of money in an e-commerce portal. An effective e-commerce store offers numerous payment options and makes the process of payment easy and instant.
Security: In the e-commerce app or website is the security feature that goes without any need for web solution. In the e-commerce platform, the users share their private data for example, bank account details or CVV numbers, credit card, it turns out to be imperative to be extremely cautious.
Mobile Compatibility: The users of the e-commerce platform tend to purchase on both PC and mobile devices. So, an e-commerce store that functions continuously across all screens is a necessity.
Logistics and Inventory Management: E-commerce portals like another physical store should have proper logistics and inventory management. Assimilating such systems guarantees that the right amount of goods remains in stock and there is no delay in the shipment of the products.
Scalable Infrastructure: The E-commerce stores must be extremely accessible, even if there is a rise in traffic during the festive season and discount offers. Using a content delivery network is also support to improve the overall performance of the store and during high traffic decrease the latency.
Content Management System: It is one more basic feature for an e-commerce portal. It allows the merchant to edit and manage pages, edit images, add content, manage the banner of the homepage, etc.
The use of SaaS-based applications is increasing nowadays. Many of the applications and software are managed over the cloud. Some of the most famous SaaS-based applications are Salesforce, Jira Gmail, Trello, and Slack. If you are willing to make any SaaS-based applications then you have to add the following features on your site.
Subscription Model: The SaaS-based applications’ software is provided over the cloud rather than installing it on PC, it requires a recurrent licensing/subscription model. There is many subscription software available from off the shelf to the customizable solutions.
Reporting and Analysis Feature: It is one of the most important features for the SaaS-based applications. You can develop this feature for both app owners and customers. From the user viewpoint, it supports them to examine the overall efficiency of the web application to fulfil their needs and from an app owner’s viewpoint, here you get all the reports and stats to improve the overall working of the application and effectively cater the user.
Core Features of Application (Minimum Viable Product): Whatsoever your product based on SaaS is – you have to develop some application’s core features that resolve the user issues. The core features of the application are also known as Minimum Viable Product. When you develop the minimum viable product and launched it in the market, after that you can update it with the added features in the next project phase.
Admin Dashboard: It is also known as Admin Panel that is actually an interface that allowances the application’s administrator some of the privileges to edit the web app.
User Dashboard: It is the user interface that appears when the user logs in to their account. It offers the user with the full control activity in the application and some tools to manage the application.
How to Prevent Unexpected Costs
Usually, during the execution of the website or web app projects, the budget of the project extend and cost of the project also increase. The reasons why the cost of the project increases during the development process are as follow:
- Some companies may offer you low budget plans deliberately to get your attention and later during development phase they add cost on all requests for change.
- Sometimes the scope of the project increases throughout the development process that also adds to the overall cost of the project.
As far as the cost adds by the companies during the execution of the project is a concern, when we team up with some new client, our web app and website development company makes two complete papers that contain all details related to the project costs. So, your client has a clear idea about what needed to be in project estimations and how we do it. making everything clear before making contracts would save you from all the additional expenses charged by companies for making changes and lack of communications.
In the case of the second problem, the change in scope results in added cost. It is understandable that businesspersons are intended at the first-class product. As new concepts rise, they certainly increase their project scope. To get control of your finances if the scope of project changes, you can practice a product backlog method. The product backlog method is a prioritized to-do list. It contains a wide-ranging software development tasks list that is organized by their rank.
Whenever you get some new idea about your web portal, you can add it in the backlog of the project to maintain and update it continuously. As the goals of the project keep changing through time, and most of the web features useful earlier are now irrelevant with the changing demands of customers. As a consequence, each sprint comprises features of high-priority and overall scope of the project also stays in the budget. This method will also help you to focus on the real needs of the business, make sure that the money is consumed for bare basics, streamline the process of development and optimize ROI.
This article is a comprehensive cost analysis of both web and web apps development. There are many options available in the market for website and app development that you can use to create your own website or web app. Development features and technology used can not only increase your project cost but you will need more time for the accomplishment of all requirements. It is very significant to keep your schedule of development project more flexible to minimize the risks and cost. The cost of your website and web apps also depends on various factors such as complexity of your project, technologies you are using, the scope of project and time and resources you required for the accomplishment of web development projects.
I hope the information shared in this article would help you to effectively manage your web and app development budget in the future. If you find this information helpful, so share it in your circle.