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Web design companies like most service companies often charge by the hour for what they do. To some people the rates can seem high but this is simply because people don’t understand where the costs come from. The web company I work for is no exception so I thought I’d offer some words of advice on the subject.

The error most people make is they simply multiply the hourly rate they are being charged by the number of working hours in a week. I can tell you straight away that this never happens, and I mean never.

Utilisation, that is the number of hours that are chargeable, varies greatly in most companies but 70% is exceptional and quite often it’s a lot less.

Secondly the hourly rate doesn’t need to simply cover the web designers wages, the money also has to pay for the office space they use, their non productive time, their holidays, sick time and so on.

So whatever you might think about the rates charged by web design companies don’t over simplify things, there’s more to it than meets the eye.

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