Database Design Buyer's Guide
Database services pricing
It's easy to experience sticker shock when shopping for custom-designed database services. Depending on the functionality you need, a database can cost tens to hundreds of thousands of dollars.
One way to approach the costs is to view database services as a long-term investment. It will cost a lot up front, but the end result will help your business run smoothly for years to come. If built properly, the time and productivity savings to your organization will more than recoup your investment.
Development session
Before work actually begins on your database services project, the designer will hold a session with you and your staff to discuss the project and gather your requirements. This session will clearly define what the database will do, how many employees will use it, how long the project will take, and what the costs will be. For small applications, this session may run one-to-two days; customized databases, like CRM systems, could take several weeks. After the session, the designer will write up the results in a specification document.
While this session can account for about $2,000 of your total costs, documenting the methodology is a critical step in the process. The spec document provides an agreed-upon set of detailed guidelines before starting work on your database.
Design services
Database design projects, which can take months, are typically billed by the hour. Rates typically range from $50 to $220 per hour depending on the size of your database and how much customization you need. The rate typically includes the initial development session, software licenses, programming, customer support, and employee training. More massive databases, detailed customization, and extensive customer support requirements will all push your project towards the higher end of that price range.
The largest part of this cost is time and labor. A small database can take 50 to 100 total hours ($2,500 to $10,000). Larger, more robust databases can take 100 to 2,000 hours ($15,000 to $400,000) or more. For customized projects that will take longer to complete, lower per hour rates may be available.
Changes to the original design are almost inevitable. If you need to make changes to your design after it's been implemented, you'll pay the same $50-$220 per hour rate. However, you may be able to negotiate a lower rate since the designer has already done the most intensive work.
In addition, you may need to license database software if you don't already have it in-house. Pricing may include a fixed number of users or require a separate license for each individual user for $50 to $200 or more, depending on the size of your database.
Get detailed estimates from each database services firm you're considering so you can compare them accurately – and don't be taken in by the lowest bottom line. You don't want to wind up with a designer that low-balled you with a favorable rate, only to find out the project takes far longer than expected and you're responsible for overrun charges.
Extended warranties
Reputable designers typically guarantee their work against bugs or other problems for the first six months to a year. However, some also offer extended maintenance agreements. The price varies widely based on the level of support you need. Basic email and phone support can cost a few hundred dollars per year. Comprehensive database services agreements, with 24 x 7 support specialists and on-call repairs, can run 10% to 20% of the total project costs.
If you don't purchase a database services extended warranty, you'll pay an hourly fee of $100-$200 for each support or maintenance incident. The costs can vary based on location. Here's some pricing guidance we've collected:
- Midwest: $50/hour and up
- Small cities: $50-$150/hour
- Large cities: $50-$200/hour and up
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