I often hear some version of the following:
My friend’s nephew who is a student can do this for $3,500 “just to get experience”. Why should I hire company that charges premium hourly rates?
We analyzed a dozen mobile projects we did for various clients for where we provided the most value, and the breakdown might be very unexpected to most people:
Percentage per VALUE provided:
35% vision (thing user never think of) and project management (PM)
20% graphics design, User Interface (UI) and User Experience (UX)
20% development, coding
5% Quality Assurance QA and Delivery to market
20% Promotion and Marketing (creating Facebook pages, tweeting, etc.)
As you can see the project that your friend’s nephew could attempt to do for $3,500 really should cost at least $17,500 and all the things that client underestimates usually leads to the failure.