Black holes and gold mines on the web development market
This information is necessary to know in order to draw correct conclusions and to prevent “expensive” mistakes.
Development of the Internet project in a web studio.
This is the most correct option in terms of investment protection. Working with freelancers and students is much more attractive in terms of cost, but only “newbies” who have not yet burned themselves, and the most desperate Customers, who are extremely tight in budget, agree to it.
To date, the range of prices in the market of commercial development ranges from $ 1,200 USA to $ 20,000 and above. We consider only the e-commerce segment. Let's see how much an Internet project costs and why. A simple calculation will help to understand where the cost of a professionally executed Internet project comes from and leads to some useful life conclusions.
Consider the professional development of the Internet project. The numbers were taken according to the expert mass share of each cost in the project budget. If this evaluation method is interesting, write to me and I will tell you more about it.
')
• Registration of the documentary part (contract, calendar plan) - 12 people / hour
• Collection of requirements, preparation of TZ, specifications - 59 people / hour
• Development of individual design - 88 people / hour
• Layout - 29 people / hour
• Implementation of functionality - programming - 147 people / hour
• Testing - 37 people / hour
• Filling content, primary SEO optimization, acceptance of work - 12 people / hour
• Project management - 59 people / hour
• Support and warranty service - 10 people / hour
Total: 442 people / hour
The cost of one person / hour 20 $ USA
The Contractor will add another 20% of the tax burden here (taxes from the RFP (social contribution, ERUs, PDFO), VAT) + profit.
As a result, the cost of the project for the customer will be about $ 6 thousand. USA
There is another type of development - “template solutions”.
This is the case when a ready-made template of a certain project is taken, the minimum adaptation to the requirements of the Customer is carried out - without deep elaboration of the concept, without usability and design, without testing, without any serious long-term cooperation with the client. Such template solutions have a “short life” because the budgets are small, and as soon as the work is completed, the Contractor loses interest in the project, since for that kind of money he is no longer interested. And the customer loses interest in the project, since it is very difficult to do something with such performance and quality. The “cost of consultations” was not mentioned - the project, then the budget, but the Contractor is not in a position to constantly advise - he will simply die of hunger if he advises all of his former Customers.
What do "template solutions" offer:
• Registration of the documentary part (contract, schedule) - 3 people / hour
• Collection of requirements, preparation of TZ, specifications - 13 people / hour
• Development of individual design - 13 people / hour
• Layout - 13 people / hour
• Implementation of functionality - programming - 40 people / hour
• Testing - 0 person / hour
• Content filling, primary SEO optimization, acceptance of work - 0 person / hour
• Project Management - 0 person / hour
• Support and warranty service - 0 man / hour
Total: 80 people / hour
The cost of one person / hour for freelancers and students will be about $ 10 USA because they do not pay taxes, do not rent an office and do not reserve funds for further customer support.
That's where prices come from ”site from $ 1200 USA”
1. In the range from $ 2000 USA to $ 6000 USA, there is a “Black Hole” of problematic profitability. To do individual projects in this range is NOT PROFITABLE. And those who want a sample, in this segment simply will not go.
2. If a company can streamline its processes and make individual projects in this range with an acceptable rate of return, this company will earn millions.
3. If any company takes a risk and agrees to make your individual project in the “black hole” range - this is an alarm signal to the Customer. The customer will face huge risks of going beyond the budget, delaying the project, stopping the project and abandoning it by the Contractor.
4. If the Customer has met on the market developers who are ready to make an individual project in the “black hole” range, then the Customer should take a closer look if they sell him a “sample solution” at the price of an individual development?
Development of the Internet project in a web studio.
This is the most correct option in terms of investment protection. Working with freelancers and students is much more attractive in terms of cost, but only “newbies” who have not yet burned themselves, and the most desperate Customers, who are extremely tight in budget, agree to it.
To date, the range of prices in the market of commercial development ranges from $ 1,200 USA to $ 20,000 and above. We consider only the e-commerce segment. Let's see how much an Internet project costs and why. A simple calculation will help to understand where the cost of a professionally executed Internet project comes from and leads to some useful life conclusions.
Consider the professional development of the Internet project. The numbers were taken according to the expert mass share of each cost in the project budget. If this evaluation method is interesting, write to me and I will tell you more about it.
')
Project budget 6000 USD
• Registration of the documentary part (contract, calendar plan) - 12 people / hour
• Collection of requirements, preparation of TZ, specifications - 59 people / hour
• Development of individual design - 88 people / hour
• Layout - 29 people / hour
• Implementation of functionality - programming - 147 people / hour
• Testing - 37 people / hour
• Filling content, primary SEO optimization, acceptance of work - 12 people / hour
• Project management - 59 people / hour
• Support and warranty service - 10 people / hour
Total: 442 people / hour
The cost of one person / hour 20 $ USA
The Contractor will add another 20% of the tax burden here (taxes from the RFP (social contribution, ERUs, PDFO), VAT) + profit.
As a result, the cost of the project for the customer will be about $ 6 thousand. USA
There is another type of development - “template solutions”.
This is the case when a ready-made template of a certain project is taken, the minimum adaptation to the requirements of the Customer is carried out - without deep elaboration of the concept, without usability and design, without testing, without any serious long-term cooperation with the client. Such template solutions have a “short life” because the budgets are small, and as soon as the work is completed, the Contractor loses interest in the project, since for that kind of money he is no longer interested. And the customer loses interest in the project, since it is very difficult to do something with such performance and quality. The “cost of consultations” was not mentioned - the project, then the budget, but the Contractor is not in a position to constantly advise - he will simply die of hunger if he advises all of his former Customers.
What do "template solutions" offer:
• Registration of the documentary part (contract, schedule) - 3 people / hour
• Collection of requirements, preparation of TZ, specifications - 13 people / hour
• Development of individual design - 13 people / hour
• Layout - 13 people / hour
• Implementation of functionality - programming - 40 people / hour
• Testing - 0 person / hour
• Content filling, primary SEO optimization, acceptance of work - 0 person / hour
• Project Management - 0 person / hour
• Support and warranty service - 0 man / hour
Total: 80 people / hour
The cost of one person / hour for freelancers and students will be about $ 10 USA because they do not pay taxes, do not rent an office and do not reserve funds for further customer support.
That's where prices come from ”site from $ 1200 USA”
And now, interesting conclusions:
1. In the range from $ 2000 USA to $ 6000 USA, there is a “Black Hole” of problematic profitability. To do individual projects in this range is NOT PROFITABLE. And those who want a sample, in this segment simply will not go.
2. If a company can streamline its processes and make individual projects in this range with an acceptable rate of return, this company will earn millions.
3. If any company takes a risk and agrees to make your individual project in the “black hole” range - this is an alarm signal to the Customer. The customer will face huge risks of going beyond the budget, delaying the project, stopping the project and abandoning it by the Contractor.
4. If the Customer has met on the market developers who are ready to make an individual project in the “black hole” range, then the Customer should take a closer look if they sell him a “sample solution” at the price of an individual development?
Source: https://habr.com/ru/post/138628/
All Articles