Pricing, Budgeting, and ROI Scenarios

How the Agile Development Method Relates to Pricing

Most vendors try to sell the BIGGEST project possible in order to earn the most money.  We do just about the opposite.  We try to sell you the SMALLEST project possible first, and then assuming you like the results, follow that up with another small project.

Our agile development method is to break big projects down into phases or “sprints” that last a week or two.  This might not earn us the most, but there are many advantages for you, the client, with this approach.  Delivering the “work in process” and getting the end users involved sooner generates valuable feedback early on.  This feedback allows adjustments to be made throughout the process when they are much less expensive to make than if they were made at the end.  This flexible or “agile” approach has been shown to increase the productivity and overall success of IT projects dramatically.

We are very excited about the Agile Process, because we know that if you succeed, we will too!  So let’s get started and create something remarkable!

Budgeting Scenarios

Rather than go through a lengthy design and approval process for a $25,000 project, we would budget that amount to be spent in phases over a 10 week period with the first simplified version of the product delivered after just 2 weeks.  In order to make how this works more clear, I provide several “typical” scenarios below.  Keep in mind that every project is different and your cost could be higher or lower, depending on many different factors.  Also note that the Return on Investment comments are purely hypothetical.  I offer them only as way to get you thinking about how such projects might pay off for you.

Upgrade a Existing Small Business Website – $2,000

In this scenario all the content is already available on the existing site or is provided by the client.  This is not a complex project.

  • Sprint #1 – Deliver the Responsive Website, $1000
  • Sprint #2 – Implement Search Engine Marketing, $1000

Return on Investment:  Client observes increases in both leads and closes that result in an additional $50,000 in sales and $10,000 net income during the first year.  ROI is estimated to be 1,000%.

Create a New Small Business Web Presence – $9,000

In this scenario we work with the client to create content for the website.  This website is considerably larger than the first scenario.

  • Sprint #1 – Create site content, $1,000
  • Sprint #2 -Deliver the Responsive Website, $3000
  • Sprint #3 – Implement Search Engine Marketing, $1500
  • Sprint #4 – Create a Promotional Video, $2000
  • Sprint #5 – Implement Email Marketing, $1500

Return on Investment:  Client observes increases in both leads and closes that result in an additional $100,000 in sales and $20,000 net income during the first year.  ROI is estimated to be 500%.

Update Part of a Corporate Website – $20,000

In this scenario we work with the client to improve part of a large corporate website.

  • Sprint #1 – Improve site content, $5,000
  • Sprint #2 -Deliver the Responsive Website, $5000
  • Sprint #3 – Implement Search Engine Marketing, $3000
  • Sprint #4 – Create a Promotional Video, $3000
  • Sprint #5 – Implement Email Marketing, $4000

Return on Investment:  ROI is estimated to be 400%.

Maintenance and Hosting

The cost of maintain a website can vary greatly depending on how much work you wish us to do.  Normally the client maintains the content on the site using the self-service tools provided.  If we do no work, the cost of maintenance would be $0.  The cost of maintenance for custom applications is usually about 10% of the initial cost per year.  The cost of hosting starts at $120 per year.  If you need even better performance or a dedicated server, we can provide a quote.

Can We Get Started?

Is now the time to update your website, or pursue that idea you have?  Fill in the form above at right and let’s talk!