We have an important announcement regarding rates – after freezing our rates for nearly 3 years at $60/hr, we are finally increasing our base rate. This is a necessary step for us to responsibly grow with all of our clients without compromising on our service quality. With rising costs and the recession, we didn’t exactly have an easy time juggling our resources in the past few years, and this rate increase is rather long overdue.
When Is This Happening?
The new rates kick in as of October 1st, 2010. I know, it’s a rather sudden notice, but this increase is deferred to many of our current clients as an exemption based on the contracts. Please scroll down below if you want to see the list of exemptions.
Here are the list of rate changes:
- Our standard labour rate for all design, creative processes, development, management etc. will be increased to $75/hr as of October 1st, unless you quality for an exemption.
- Our web hosting fee on our private server (which is a stellar server by the way) will be increased to $9/mth as of your next billing cycle, and billed yearly.
- Our Reach Email Marketing subscription fee will be increased to $22/mth as of your next billing cycle, and billed every 6 months.
Justifying the increase of our labour costs
Some of you may be thinking that a a 25% jump in rates is rather too steep, but here are a few explanations:
- Our productivity per hour has been increasing so much over the past few years. We can roll out the same products with less hours overall. On some web projects, we have seen productivity increases as much as 45%. So really, we’re not charging you more – we’re doing more work in the same amount of time, for a higher cost.
- Our rate is still among the lowest of agency rates. Please check out this link that explains the average cost of web design agencies (http://www.webdesignbroker.com/average-web-design-prices-what-should-a-website-cost/). So at $75/hr, we are still at the very bottom of the scale. We are not a big agency with big overheads, so we won’t charge the premium $150/hr like some of our competitors. At least not yet!
- With the advancement of non-flash techniques (jQuery, CSS3 etc.) websites are becoming less labour intensive. Many of our websites are taking less time than before due to this factor, but with increased quality.
- We have added some equipment to our office to better serve you. This includes a full Pantone Swatch Set, 2 new computers (iMac, Samsung Netbook), printer equipment, external storage space for backing up your files, and more. We take good care of our data.
- We have added security in our office thanks to Scott Security, as well as other measures of our own to protect your data.
- Our quality of work has increased so significantly over the years, with added experience and knowledge, as well as following the fast-paced trend changes.
The exemptions to this increase on labour cost
Just like anything else, there are some exemptions to this rate increase, and here they are:
- If you already have an active website contract with us, we won’t raise the rates in the middle of the job.. obviously.
- If you have a proposal that we have sent you within the month of September 2010, the $60/hr rate is valid as long as the proposal is accepted and the deposit is paid by the end of the week.
- If you have signed our contract (the thick bundle of papers with many legal terms), there will be a clause in there that guarantees your rate for a certain period of time, whether it be 3 months, 6 months, or a year. This is a warranty period rate freeze, so this rate increase will be deferred for that specific project until the freeze period is over.
- If you qualify for a volume discount based on high monthly volume (10 hours or more a month on average, ongoing), we will be sending you separate emails with specific terms for your account.
Regarding the subscription rate changes
This is really simply due to increasing costs of maintenance and software licensing. A trickle-down of the inflation that has been hitting our society for over a hundred years, if you may.
The advantages of using our Reach system, as well as hosting your site on our server rather than going with a 3rd party web hosting provider, are that we take personalized care of all your data and information, and we are able to provide personalized and direct service for you. Also, by having your site on our servers, we can expect less unexpected errors regarding server environments. This saves our time, and your money, in the long run.
Questions & Concerns?
Please feel free to email us with any questions about your rates. For the sake of privacy, we will not be allowing comments on this specific blog post.
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