UX agencies can range significantly in cost, and many have completely different pricing models. As the old adage goes, you often get what you pay for, so business owners should be wary of being promised the moon and stars for a price that seems too good to be true. That said, it's always wise to compare prices and the services being included.
Most UX agencies include some core services in their price. For example, typically, the designer with a project manager and business analyst will conduct research and study the market. During this initial stage, they'll define your target audience and gain a thorough understanding of your clients' needs.
This information will be used to develop a typical user description, commonly known as a persona. This process stage is all about mapping out the user journey, including frequent pain points encountered during the average user's interaction with the website or app.
The next stages involve strategising, testing, and finding the best ways to implement useful changes.
Typically, UX agencies use two different pricing methods to charge for these services: time-based pricing and project-based pricing.
Time-based pricing is when a company charges hourly, daily, or weekly rates. Clients pay based on the time the agency spends working for you. While time-based pricing offers flexibility in collaboration, sometimes costs can climb rapidly if a project is mismanaged and inefficiencies start to creep in.
Then there's project-based pricing which utilises a fixed price. While project-based pricing can offer budgeting benefits, it can also lead to frustrations if the project's scope isn't detailed from the very beginning. If you go this route, it's best, to begin with, a thoroughly detailed proposal and agreement that outlines what is and isn't included.
When it comes to actual dollars and cents, there can be big differences in UX agency prices. Hourly rates can vary from anywhere between $50 to several hundred dollars. Larger companies with longer track records sometimes charge more to make sure they can cover their numerous organisational and administrative expenses. That said, this extra expense may come with the benefit of a larger, more experienced team at your disposal.