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Business of the Web Part 1 : $10 an hour vs. $100 an hour rates

Posted on 09/14/09 | Category: blog, business | Tags:

One of the questions that many clients ask me is: Why should I pay $100 an hour for Studio A when Studio B is offering the same for $10 an hour? While this may seem like an obvious answer for those of us in the industry, it’s a good question and an equally hard one to answer.

The Porsche of Design

In the consumer world, you often equivocate price with quality and value. While you may be willing to pay $500 for a Chevy clunker, you would never paid $50,000 for the same car. Why? Because you know that that car is not a $50,000 car. The same goes with designer clothes, electronics and about every tangible thing out there. However, web services tend to be more difficult to value. Clients often don’t understand the difference between a bad designer and a good designer; or worse a bad developer and a good developer. It’s easy to see the difference between a Chevy Cavaliar and a Porsche Turbo. Not the same online.

Is More Expensive Always Better?

Not always. You always have some overpriced clunkers. But it’s a good indication. There are many good reasons to charge $100 an hour:

Still not convinced? Let’s use another example. Let’s say you need a lawyer to handle some case. Would you trust that the lawyer charging $10 an hour or $100 an hour could have the necessary skills to win your case? Or even more…would the $250 an hour lawyer be more fit to handle your case? The same goes for the web world: be it web design, web development, SEO or programming. You get what you pay for.

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About the author
Amber Weinberg specializes in clean and semantic XHTML, CSS and WordPress development. She has over 10 years of coding experience and is pretty cool to work with. Amber is available for freelance work, so why not hire her for your next project?.

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3 Comments

  1. John Overall says:

    I like this post very much found it from your twitter. I am always glad to see someone else aside from me trying to tell people about the difference between low cost design people vs higher Value ones.

    John Overall
    http://www.FireDragonHosting.com

  2. There are always exceptions to the “you get what you pay for” rule. For instance some $10 bottles of wine are high rated than $50 bottles of wine.

    I also know a juice company (MonaVie) that uses the “you get what you pay for” theory to charge a lot for a poor product (because not many people know how to evaluate the product).

  3. Amber says:

    Ah very very true there are always exceptions to the rule, however they are of course, exceptions.

    In the business of the web, you should never really trust anyone working for $10 an hour. If their services we’re as good as they were making them up to be, they’d charge at least $30 or more because that’s what the market bears them to be. Lazy Man, when fighting MonaVie please don’t hire a lawyer for $10 an hour! LOL ;) Keep me up to date with how that goes.

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