There are basically three methods of charging for web design work -- by the package, by the hour, or total cost for the project. Whichever method of charging for your work you decide to use, there are pros and cons to consider.
Charging by the Package
This is sometimes called the menu or by-the-page method of determining project cost. Essentially the designer establishes fees for web site packages consisting of a specified number of pages, forms, graphics, etc. The client can simply add up the fees to determine the project cost.
Although it is common to see this method of charging, it is not a method I would encourage anyone to use. At best, the definitions of a web page or custom graphic are vague and open to wide interpretation (or misinterpretation). This method also limits the scope of a project in ways that can be fatal to the success of the site.
Hourly Charges
Hourly charges are easiest for the web designer and eliminate the possibility of losing money on a job. However, in my experience, hourly charges are often not acceptable to the client for several reasons.
First of all, the client generally wants to know how much that web site is going to cost.
The next problem I have encountered is that most clients don't understand hourly rates are not the same as wages. This confusion can cause them to balk at what they perceive to be unreasonable rates.
The third problem I have encountered is that in the United States, some agencies require contractors to meet every criteria for the definition of a contractor under the Internal Revenue Service rules and, therefore, will only award contracts based on project cost.
Project Estimates
It seems like it should be simple to estimate how much a web design project will cost. All you need is a little simple math: hourly rate x number of hours = total project cost. Now back to reality. Figuring the total cost of a project is considerably harder than computing an hourly rate. Above all else, it takes practice. In my experience though, making project estimates is a requirement of the job.
As we all know, a web site can be many things and building one can require various types of work - HTML, scripting, graphics work, scanning, copywriting, editing, database development, meetings, and so on. The key to an accurate estimate lies in clearly defining the scope of the project, breaking the project into small individual tasks, and finally, estimating the time required to complete each of these tasks. It is essential to get as much information from the client as possible. Then lock in the scope of the project with a written contract or agreement. Be absolutely certain that the client understands any work outside of the agreement will be billed separately.
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