This article will change the way you think about website pricing.
If you want to find out how much you should be paying for a website, then read on!
If you search “How much does a website cost” on Google, you will find over 1 billion results! The first 10 results will give you an itemised breakdown of exactly what a website will cost. Everything from hosting to the framework and add-ons.
And 80% of those articles will compare buying a website to buying a car. According to them, there’s a “base price” and the more features you add, the more expensive it gets.
Whilst such a comparison seems logical, it is not the right way to think about website pricing.
To challenge the status quo I am not going to give you costs. There are quite literally 1 billion other articles you can get that information from. What I want to do, is change the way you think about websites.
How valuable is a website to you?
If I walked up to you and asked: “Hey, want to buy this ATM for R500k” (ignore the fact that I am casually walking around with an ATM), you would probably be very sceptical – besides, even if you were interested in an ATM, where are you going to get R500k?
But what if I told you that the ATM had R1 million in it? I bet you would rustle up R500k quicker than a Gupta with speed-dial. Paying R500k for an empty ATM is madness, but buying an ATM and doubling your money is a no-brainer!
Forget where I got this ATM from, the point I am making is that we are happy to pay for things as long as we will get value in return. So if the price is your biggest deciding factor when it comes to websites, then you aren’t seeing the value.
Depreciating Or Appreciating?
To flog this analogy some more… You repaid your dodgy investors and you are now R500k (and one stolen ATM) richer. Do you spend the money, or invest it? Either way, you will have to part with it. Quite proud of yourself, you have chosen to invest. Your only consideration is which bank will give you the most return.
And this is the problem: Most businesses (generally the ones who struggle) see their website as an expense, a depreciating asset. What will it cost you now? Does it fall within your budget?
When in fact you should see your website as an appreciating asset, an investment. How much return will it give you? How long can it do that for?
When you buy stock for your business – that’s not an expense, it’s an investment. Because you know that you can sell that stock and make a profit. Your website is absolutely no different – a good website will make you money, undoubtedly.
Sticking with my ATM analogy, let’s bring it closer to home. If I asked you: “Hey, want to buy a website for R100k” Again you would laugh me off. Who has R100k for a website!
But what if I told you this website would generate 1 sale a week for 2 years? Assuming that 1 sale is worth R10 000 – that’s a 104 new clients and a total income of over R1m. Suddenly, paying R100k, R300k or even R500k seems worth it, if that’s what you are getting in return.
This is how you need to start looking at your website – as an asset that will give you a return on investment. Once that is your mindset it will change everything! The entire way you see your website, how you choose a web developer, everything.
Websites are more than just “things” that sit on the web providing people with information. Or at least they should be.
Not Cost, Value!
Of course, the cost of a website does play a part, you shouldn’t pay R100k for a website if you weren’t absolutely sure what you are getting in return. I am just saying that your mindset needs to move away from price, price, price and towards the value it can offer you.
So to sum this up; the question is wrong – it should be: “How much does a GOOD website cost?” And the answer is: “Exactly as much as it needs to.”
I told you that this is not the answer you were looking for!
So, how much does a website cost?