The Myth Of Hourly Rates

Jun 19, 2012

Like most web designers, we get asked a lot by potential clients for what our hourly rate is. Sometimes they even insist we only give them an hourly rate.  The reasoning for this, as we're often times told, is so the client can compare pricing from multiple design and development companies. But the obvious problem with this is just because one company has a lower hourly rate doesn’t mean they will be cheaper to accomplish the same task.

Do they round up to the next hour?

How long does it take them to complete the job?

We typically work efficiently so we can accomplish a task in the least amount of time as possible while also performing the tasks in a smart and proper manner. If for instance our hourly rate is $75/hr and the other company's rate is $50/hr, you would most likely spend more for the other company – and it took them longer to get it done. As with everything in this industry, you get what you pay for.

With an hourly quote, what usually happens is a rate is given and an estimated time. That time is only an estimate, often times a rough estimate, and it could be well go beyond that time. As a business owner getting work on your website, you ultimately have no idea what you will be paying in the end. There is a good chance the 10 hour estimate will turn into 15 hours and your cost for the project went up 50%. At NTR Imagescapes, we like to give fixed bid pricing so you know what you will be paying – no additional, hidden costs.

Ultimately hourly rates are used by every company including ours. We use hourly when a project is open-ended and we have no way of knowing how long the project will take. We also use it for ongoing maintenance of our client websites. But we don’t round up to the next hour, it’s always in 15 min intervals.

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