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Business owners, managers and digital service providers are often faced with a simple but complex question: “How much will it cost?” Whether you’re a service provider offering a quote or a customer asking for a quote, the answer to that question isn’t as simple as it seems.
The key to avoiding miscommunication, budget overruns, and unmet expectations lies in how you define the project up front. Without clear specifications, both sides may find themselves in uncharted territory. Here’s how service providers and clients can work together to set precise expectations and avoid common pitfalls when pricing digital projects.
How long is the string? Why pricing digital projects is complex
Many years ago, when I was working on website development, someone asked me, “How much does a website cost?” They were hoping for a quick, definitive answer, like $X for a basic site.
Instead, I asked a follow-up question: “What do you need your website to do? Just content? E-commerce? Patterns?” I’ve since remembered their response: “Oh, that’s like asking how long is a string?”
This idiom applies to countless situations in our digital industry. Many think that the digital industry is similar to the automotive world. If you’re buying a vehicle, you start with a base price and add X dollars for various options to arrive at a fixed price before negotiating. In reality, it’s more akin to building a custom car to your unique specifications, starting at best with a custom car kit as a base.
Website builds, digital analytics implementations and marketing campaigns are all custom made that start with the basics. While some assignments may have predictable, fixed costs, most require thorough research and collaboration between service providers and clients to determine the details. Only then can you determine how much wire is needed — and how much it will cost.
Dig deeper: 5 Ways to Use Project Management Data to Improve Operational Best Practices
For service providers: Clear scoping and deliverables
Subjectivity of scoping work
The way the project is defined can drastically affect the offer. Taking the wire idiom further: if someone asked for a piece of wire, they might specify an 18 inch long wire. But did they mention the material — cotton, nylon, hemp? What about the measurement (thickness)? These details can make a big difference in price. What if they actually need a leash and not a leash? You just delivered what they asked for, but not what they needed or wanted.
When evaluating digital services, the more detailed the client’s request, the more accurate and realistic your offer will be. For example:
- Have they specified how many platforms their ads should appear on?
- Did they specify how many ad variations they need to review before approval?
Clarity in the client’s requirements helps ensure that both parties are aligned with expectations and budget. If you’re responding to a request for quote, make sure the “string” you’re providing is what the customer asked for and actually needs. Don’t be afraid to ask what they want to do with the wire. Understanding their goals can help you offer a better solution – often winning the project in the process.
How you handle a project can directly affect its success. Without clear specifications, you’re left to guess. This second-guessing can lead to unexpected costs, strained relationships, or unmet expectations.
Hidden costs of unclear specifications
Vague specifications are one of the biggest culprits for projects that go over budget or fall short of expectations. When clients aren’t clear about what they need, it leads to miscommunication, under-scope and surprise costs. This can create a ripple effect, ultimately leading to disputes or strained relationships. To avoid this, always clarify exactly what the client expects. The more specific their request, the more accurate your offer will be.
Additionally, when discussing the project with clients, encourage them to identify nice-to-haves—features or elements they’d like to include if budget and timelines allow. Separating these from core deliverables allows both you and the client to prioritize and effectively manage costs.
By tackling the must-haves first, you can focus on the essentials while still being open to those extra features if resources allow. This helps avoid misunderstandings and ensures a smoother, more transparent pricing process.
Clearly defining the results
When preparing a quote, ensure that all required deliverables are clearly stated for the client. For example, determine how many pages the site includes, the level of design complexity, or features like e-commerce or custom integrations. Be explicit about the scope to avoid assumptions and allow room for adjustments if additional features or changes appear later.
Transparency isn’t just about what’s included in your offer – it’s also about what’s not. Clearly state exclusions, such as ongoing maintenance, premium add-ons, or third-party subscription fees. Many disputes arise because clients assume something is covered when it isn’t, so stating this upfront protects both parties and builds trust.
Accounting for unknowns
In the digital world, unknowns are inevitable — server crashes, software updates that break functionality, and tools that become obsolete overnight. Your project plan should take these risks into account. For example, what is the backup plan if you are building a WordPress site and a critical plugin becomes unavailable? Include contingencies in your proposal to cover these situations.
It’s akin to taking your car to a mechanic for a noise, expecting a simple fan belt replacement, and then finding out the problem is the transmission. You wouldn’t expect a mechanic to fix a transmission for the price of a fan belt, and the same logic applies to digital projects.
Dig deeper: How to effectively delegate tasks and manage projects
Why comparing quotes isn’t always apples to apples
While apples, oranges, avocados and tomatoes are all fruits, they serve very different purposes. Similarly, not all quotes are created equal.
As a client, remember that price alone does not tell the whole story. A lower bid may seem attractive, but may result in poor performance, hidden costs, or endless revisions. When comparing offers, consider factors other than just price:
- Service provider experience.
- Their ability to meet your unique needs.
- Their experience with similar projects.
For example, a client once asked me for an hourly rate to fix their analytics setup. They thought my price was too high and almost went to someone cheaper. Before rejecting my rate, I insisted on reviewing their bill. Within 15 minutes I found and fixed the problem – free of charge. That client is now a regular and has never questioned my prices since.
Sometimes a higher rate reflects greater efficiency and value. Can someone on $200/hour do a job in one hour, while someone on $100/hour will take three hours? How much is your time worth?
Education for better results
Setting clear and realistic expectations is key to ensuring your project runs smoothly and stays on budget. Don’t hesitate to ask for clarification if you are unsure about a particular process or cost.
The more you understand the work involved, the better equipped you will be to evaluate bids, set realistic expectations, and effectively manage the project. For example:
- If you expect immediate results from an SEO strategy, understand that measurable gains usually take time to materialize.
- If in doubt about the cost of a project, ask your service provider to explain the steps, tools and expertise needed to complete it.
By educating yourself, you can set more realistic expectations and create a collaborative environment with your service provider. This proactive approach helps foster trust and ensures you are getting value for your investment.
As Syms, the clothing retailer, said, “The educated consumer is our best customer.” This timeless adage still rings true today, especially when navigating the complexities of digital projects.
Dig deeper: 10 steps to better supplier selection
The art of precision and clarity
Consultants and clients must work together to ensure that each project specification is clear and complete. Don’t assume it’s comprehensive just because something is in the RFP.
The next time you bid or ask for a quote, remember the question, “How long is a piece of wire?” Take the time to define the length, material, diameter and purpose of that string. Only then can projects be delivered on time, within budget and with minimal surprises.
By prioritizing precision and clarity, you’ll not only avoid headaches—you’ll build trust, encourage collaboration, and lay the foundation for long-term success.
Contributing authors are invited to create content for MarTech and are chosen for their expertise and contributions to the martech community. Our associates work under supervision redaction and contributions are checked for quality and relevance to our readers. The opinions expressed are their own.
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pubmatic.com, 81564, RESELLER, 5d62403b186f2ace
pubmatic.com, 156538, RESELLER, 5d62403b186f2ace
rubiconproject.com, 13510, RESELLER
adform.com, 1942, RESELLER
lijit.com, 249425, RESELLER
video.unrulymedia.com, 592728597, RESELLER
smartadserver.com, 2640, RESELLER
adyoulike.com, f1dfbb7f133fbdb25c96e7d85a5e628b, RESELLER
themediagrid.com, P19GFJ, RESELLER, 35d5010d7789b49d
smartadserver.com, 1999, RESELLER, 060d053dcf45cbf3
onetag.com, 8d4b087143c49f0, RESELLER
amxrtb.com, 105199794, RESELLER
contextweb.com, 563371, RESELLER, 89ff185a4c4e857c
onetag.com, 7a4244b2979db22, RESELLER
onetag.com, 7a4244b2979db22-OB, RESELLER
openx.com, 539625136, RESELLER
google.com, pub-2128757167812663, RESELLER, f08c47fec0942fa0
google.com, pub-4673227357197067, RESELLER, f08c47fec0942fa0
rubiconproject.com, 17210, RESELLER, 0bfd66d529a55807
appnexus.com, 10264, RESELLER, f5ab79cb980f11d1
pubmatic.com, 156383, RESELLER, 5d62403b186f2ace
themediagrid.com, VIY354, RESELLER, 35d5010d7789b49d
smartadserver.com, 1743, RESELLER, 060d053dcf45cbf3
improvedigital.com, 2048, RESELLER
lijit.com, 257429, RESELLER, fafdf38b16bf6b2b
adform.com, 2474, RESELLER, 9f5210a2f0999e32
triplelift.com, 12911, RESELLER, 6c33edb13117fd86
aps.amazon.com, 93aec77c-f6d2-45bd-affc-a85ab5a72683, RESELLER
onlinemediasolutions.com, 21097, DIRECT, b3868b187e4b6402
rubiconproject.com, 20416, RESELLER, 0bfd66d529a55807
onomagic.com, 210971, DIRECT
rubiconproject.com, 24364, RESELLER, 0bfd66d529a55807
getmediamx.com, 1221097, DIRECT
lijit.com, 374814, RESELLER, fafdf38b16bf6b2b
pubmatic.com, 161332, RESELLER, 5d62403b186f2ace
openx.com, 537153209, RESELLER, 6a698e2ec38604c6
video.unrulymedia.com, 6694405583287859332, RESELLER
themediagrid.com, IRK975, RESELLER, 35d5010d7789b49d
appnexus.com, 11801, RESELLER
appnexus.com, 15629, RESELLER, f5ab79cb980f11d1
appnexus.com, 15127, RESELLER
onetag.com, 7b561459c997848, RESELLER
audienciad.com, 210972, DIRECT
loopme.com, 12733, RESELLER, 6c8d5f95897a5a3b
onetag.com, 75753f1ebcc343c, RESELLER
yieldmo.com, 2757543169808605705, RESELLER
adyoulike.com, e9a771d72c076dbe3cafc2c6477f9238, RESELLER
amxrtb.com, 105199514, RESELLER
aps.amazon.com, 48266a61-b3d9-4cb7-b172-553abc6a42a4, DIRECT
smartadserver.com, 4253, RESELLER
adform.com, 3251, RESELLER, 9f5210a2f0999e32
sharethrough.com, LxFeZvU4, RESELLER, d53b998a7bd4ecd2
videoheroes.tv, 212692, RESELLER, 064bc410192443d8
rubiconproject.com, 25060 , RESELLER, 0bfd66d529a55807
appnexus.com, 12976 , RESELLER, f5ab79cb980f11d1
sharethrough.com, K5WDGAsP, RESELLER, d53b998a7bd4ecd2
smartadserver.com, 3964, RESELLER
pubmatic.com, 161018, RESELLER, 5d62403b186f2ace
adform.com, 3016, RESELLER
lijit.com, 483304, RESELLER, fafdf38b16bf6b2b
pubmatic.com, 161344, RESELLER, 5d62403b186f2ace
contextweb.com ,562794,RESELLER,89ff185a4c4e857c
improvedigital.com, 1805, RESELLER
video.unrulymedia.com, 170071695, RESELLER
criteo.com, B-064322, RESELLER, 9fac4a4a87c2a44f
openx.com, 559792583, RESELLER, 6a698e2ec38604c6
onetag.com, 601a5990b7f5cf7, RESELLER
tappx.com, 42024, RESELLER, 9f375a07da0318ec
sonobi.com, c58cf86903, RESELLER, d1a215d9eb5aee9e
e-planning.net,ea9874674191f1ff, RESELLER,c1ba615865ed87b2
freewheel.tv, 1601610, RESELLER
loopme.com, 11694, RESELLER, 6c8d5f95897a5a3b
sonobi.com, ac6f1a9ded, RESELLER, d1a215d9eb5aee9e
themediagrid.com, B8N9YH, RESELLER, 35d5010d7789b49d
gumgum.com, 15835, RESELLER, ffdef49475d318a9
thebrave.io, 1234750, DIRECT, c25b2154543746ac
appnexus.com, 12061, RESELLER, f5ab79cb980f11d1
media.net, 8CU9B72O6, RESELLER
inmobi.com, ef083d721beb4c0f8776ced01e262c03, RESELLER, 83e75a7ae333ca9d
rubiconproject.com, 24752, RESELLER, 0bfd66d529a55807
adyoulike.com, 994b7b4e03898048761c7110f11e56c2, RESELLER
loopme.com, 11561, RESELLER, 6c8d5f95897a5a3b
video.unrulymedia.com, 3881266972, RESELLER
richaudience.com, q3KyMB36ue, RESELLER
freewheel.tv, 1601388, RESELLER
lijit.com, 273050, RESELLER, fafdf38b16bf6b2b
33across.com, 0010b00002MptSLAAZ, RESELLER, bbea06d9c4d2853c
admixer.net, b0411519-d717-49e1-9051-eaf1cb5280b0, DIRECT
inmobi.com, 61d733c3779d43e590c51c8bc078e10c, RESELLER, 83e75a7ae333ca9d
pubmatic.com, 160846, RESELLER, 5d62403b186f2ace
loopme.com, 11488, RESELLER, 6c8d5f95897a5a3b
e-planning.net,ec771b05828a67fa,RESELLER,c1ba615865ed87b2
video.unrulymedia.com, 851532539, RESELLER
admanmedia.com, 1074, RESELLER
nextmillennium.io, 16425, DIRECT, 65bd090fa4a1e3d6
video.unrulymedia.com, 827123801, RESELLER
rubiconproject.com, 15268, RESELLER, 0bfd66d529a55807
richaudience.com, 9komJKwMhZ, RESELLER
mgid.com, 885240, RESELLER, d4c29acad76ce94f
adform.com, 1762, RESELLER
smartadserver.com, 3627, RESELLER, 060d053dcf45cbf3
adsinteractive.com,39993,RESELLER
adform.com,961,RESELLER
pubmatic.com,158937,RESELLER,5d62403b186f2ace
openx.com,541146395,RESELLER,6a698e2ec38604c6
appnexus.com, 17553, RESELLER, f5ab79cb980f11d1
risecodes.com, 682ede1cb5100100018d47ff, RESELLER
voisetech.com, 1248, RESELLER, 9009ef0379162448
pubmatic.com, 165116, RESELLER, 5d62403b186f2ace
video.unrulymedia.com, 436487936, RESELLER
exchange.loyal.app, AJxF6R45a9M6CaTvK, RESELLER
tappx.com,43770,DIRECT,9f375a07da0318ec
inventorypartnerdomain=tappx.com
triplelift.com,11617,RESELLER,6c33edb13117fd86
smartadserver.com,1692,RESELLER,060d053dcf45cbf3
rubiconproject.com,13856,RESELLER,0bfd66d529a55807
appnexus.com,10824,RESELLER,f5ab79cb980f11d1
appnexus.com,9569,RESELLER,f5ab79cb980f11d1
video.unrulymedia.com,3341072718,RESELLER
loopme.com,11227,RESELLER,6c8d5f95897a5a3b
pubmatic.com,158111,RESELLER,5d62403b186f2ace
pubmatic.com,92509,RESELLER,5d62403b186f2ace
sharethrough.com,iHIgeRWP,RESELLER,d53b998a7bd4ecd2
adform.com,2691,RESELLER
33across.com,0010b00001siQHqAAM,RESELLER,bbea06d9c4d2853c
videoheroes.tv,212473,RESELLER,064bc410192443d8
thebrave.io,1234661,RESELLER,c25b2154543746ac
chartboost.com,5da62a1035b91e0aff190bf7,RESELLER
inmobi.com,ec6f6ceb8bb1440ba5455644ec96c275,RESELLER,83e75a7ae333ca9d
improvedigital.com,1934,RESELLER
goldvertise.com,Tappx,RESELLER
playdigo.com,1970,RESELLER,92011346d63d3c30
themediagrid.com,4FDQYH,RESELLER,35d5010d7789b49d
inmobi.com, 945973801c1a43e7ad6cb904bf2df477, RESELLER, 83e75a7ae333ca9d
rubiconproject.com, 11726, RESELLER, 0bfd66d529a55807
rubiconproject.com, 12266, RESELLER, 0bfd66d529a55807
pubmatic.com, 157097, RESELLER, 5d62403b186f2ace
conversantmedia.com, 40881, RESELLER, 03113cd04947736d
smaato.com, 1100053415, RESELLER, 07bcf65f187117b4
lijit.com, 502742, RESELLER, fafdf38b16bf6b2b
loopme.com, 9724, RESELLER, 6c8d5f95897a5a3b
thebrave.io, 1234568, RESELLER, c25b2154543746ac
mintegral.com, 10003, RESELLER
zmaticoo.com, 5135082, RESELLER
opera.com, pub6871903319744, RESELLER, 55a0c5fd61378de3
admanmedia.com, 2063, RESELLER
impactify.io, 1146, RESELLER
improvedigital.com, 1058, RESELLER
google.com, pub-1343218370015870, RESELLER, f08c47fec0942fa0
appnexus.com, 11197, RESELLER, f5ab79cb980f11d1
adform.com, 2736, RESELLER, 9f5210a2f0999e32
pubmatic.com,160987,RESELLER,5d62403b186f2ace
pubmatic.com,160998,RESELLER,5d62403b186f2ace
pubmatic.com, 164545, RESELLER, 5d62403b186f2ace
freewheel.tv, 282594, RESELLER
freewheel.tv, 282818, RESELLER
rubiconproject.com, 19688, RESELLER, 0bfd66d529a55807
rubiconproject.com, 19690, RESELLER, 0bfd66d529a55807
smartadserver.com, 2974, RESELLER
smartadserver.com, 2974-OB, RESELLER, 060d053dcf45cbf3
appnexus.com, 11664, RESELLER
152media.info, 152M1135, RESELLER
amxrtb.com, 105199329, RESELLER
appnexus.com, 9124, RESELLER
alliancegravity.com, 2634077, RESELLER
sublime.xyz, 825, DIRECT
smartadserver.com, 1827, RESELLER
improvedigital.com, 335, RESELLER
appnexus.com, 3538, RESELLER
themediagrid.com, PIFK3H, DIRECT, 35d5010d7789b49d
missena.com,SID-43728762,DIRECT
themediagrid.com, IPB3NX, DIRECT, 35d5010d7789b49d
smartadserver.co