Pricing an e-Commerce Site

It would be silly to try to detail exact pricing on a Website like this, but here are some things to consider.

  1. There is a cost for initial planning, including the development of 'wire frame' designs.
  2. The cost of design will depend on the complexity of the design and the number of functions required.
  3. A Content Management System will need to be purchased. Current costings can be found from the Cobra-cms Website. It may seem expensive, but it is very cheap compared with most CMS systems.
  4. Initial cost of the shopping cart.
  5. Once the designs are approved by all concerned, the content can start being added. The cost of this will be quoted at the hourly rate above
  6. Setup cost of Payment Gateway
  7. There will be a cost for domain registration and hosting.
  8. Development of 12 - 15 'Potential Customer' e-mails.
  9. The more content the client can provide in the form of text and graphics, the more you are going to cut down on the cost

Once the site is up ap making money there are annual costs to consider:

  1. Annual cost of CMS maintenance
  2. Annual cost of shopping cart
  3. Annual cost of Payment Gateway
  4. Annual cost of registration and hosting (as above)
  5. Design and production of monthly newsletters
  6. Maintenance of the Product Catalogue (changing products, updating prices, making seasonal changes)

Other costs to consider:

  1. Transaction costs to the Payment Gateway if sales go over the included transactions threshold
  2. Transaction charges to the Bank for the Internet Merchant Account
  3. Payments to Google for Adwords and/or Google Checkout

The reason why more detailed figures are not given is that Keerim Design would like to offer a different type of contract. It is inevitable that start-up costs are high and Internet-based sales will start low, but profits will increase as the site gets marketed and known by customers. The concept is that a fixed-term contract be negotiated between Keerim Design and the client. Some of the initial start-up costs would be absorbed, allowing greater profits at the start and when sales are higher the annual contract cost will be hardly noticeable. Talk to Keerim Design now. Potentially, everyone wins!

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