Prices
It would be silly to try to detail exact pricing on a Web site like this, but here are some things to consider.
- There is a cost for initial planning, including the development of 'wire frame' designs at a minimum of £50 + VAT per hour
- The cost of design will depend on the complexity of the design and the number of functions required.
- A Content Management System will need to be purchased. Cobra-cms at present is £825 +VAT for a system that will handle up to 300 pages or £2,480 + VAT if going over this limit. There is also an annual product maintenance cost of £150 / £350 + VAT. This pricing structure is changing and will be detailed here when available. It may seem expensive, but it is very cheap compared with most CMS systems.
- Initial cost of the shopping cart. RomanCart is at present (£199 + VAT)
- 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
- Setup cost of Payment Gateway £150 - 200 + VAT
- There will be a cost for domain registration and hosting - normally no more than £100 - 200
- Development of 12 - 15 'Potential Customer' e-mails at the development rate above.
- The more content you can provide in the form of text and graphics, the more you are going to cut down on the cost
The initial setup cost will be between £2,000 and £10,000 depending on the size of the business and the functions required.
Once the site is up ap making money there are annual costs to consider:
- Annual cost of CMS maintenance (as above)
- Annual cost of shopping cart
- Annual cost of Payment Gateway
- Annual cost of registration and hosting (as above)
- Design and production of monthly newsletters at £50 per hour
- Maintenance of the Product Catalogue (changing products, updating prices, making seasonal changes)
The initial annual cost will be a minimum of £2,000 - 2,500 for a medium-sized business
Other costs to consider:
- Transaction costs to the Payment Gateway if sales go over the included transactions threshold
- Transaction charges to the Bank for the Internet Merchant Account
- 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. The wording of this agreement is being investigated now, but it is hoped to find a formula that will determine the total costs over five years and distribute that on an equal annual basis. Everyone wins!
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