June 18th, 2009 by Junde

RMB 368 ($53) website development in Guangzhou

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I came across this signboard-wielding guy at Shipai Computer City (石牌电脑城). He was advertising for a web development company situated in the building behind, which does basic web development for RMB 368 ($53).

RMB368 for a website!!

Ok, so what else can one get in Guangzhou for RMB368?
- A bottle of Chivas at New Era Disco
- Luxurious lunch buffet for 2 at Shangri-la Pazhou
- a *product for non-adolescent use
- 368 sticks of roadside lamb kebab
- A *massage

*Price estimates are provided without actual visit/purchase account. Guangzhouer would not be responsible for price fluctuations.

We’ve heard of cheap websites in certain places but RMB 368 is a whole new (low) level! This sort of price competition might just induce new consumer trends.

Imagine 2 random dudes, for the sake of mentioned randomity,
let’s call them John and Mo:

John: Woah..hot day, What shall we do tonight?
Mo: How about massage?

John: Nah we did that yesterday. Where else can we spend RMB368?
Mo: Oh I know! Let’s get ourselves a website!

John: You’re a F888ing genius!

 

Ok, imaginary stuff aside, based on my experience as an employer in Guangzhou, here’s a little cost and quality analysis on the company that offers to build and host a 5 page basic website for RMB 368.

Quality analysis (based on http://bilan.cn which I presume to be an initial RMB 368 package that was upgraded)

Templated Design: template-like, with template-like flash elements.
Content layout: little or no variation of content layout and design across pages
HTML Slicing: Not inter-browser compatible, not adhering to standards

Estimated Production Time: 1.25 days
Average salary of a web programmer of said work performance: RMB2500
Cost of Production: RMB2500 / (21 working days / 1.25 production days) ~ RMB150
Gross Profit Margin: (368-150)/150 = 145%

A 145% profit margin is rather healthy, I would say, for a piece of technology development priced at RMB368.

From my humbly brief period in the web industry in Guangzhou, I have not encountered many quality web companies. It’s not just a supply side issue. The habits of the common man on the streets, and the knowledge and practices of small/medium enterprise here, are telltale signs that general appreciation beyond low-cost design is absent.

This industry in this part of China is not yet matured, and has become saturated with vendors who compete on price. Strides will be made with time, as upcoming generations of internet-savvy youth join the workforce and slowly exert their influence. Free seminars exist, like Web Wednesday Guangzhou, a monthly event organised by web evangelists to inform and educate students and professional enthusiasts.

International exposure (writings, visuals, people) also plays an integral part. This is the essential part of our blog offering to the peoples of Southern China. From an Asian-expat perspective, we aim to inform, entertain, and learn more about the vast south as we roll along.

Arise Guangzhouer!

 

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9 Responses to “RMB 368 ($53) website development in Guangzhou”

  1. JOJOarez says:

    I got the sofa..

    368 is just a sales hook la..
    They trick all the time.. They will tell you that 368 doesnt cover this or that..you may have to pay double or more .

    便宜没好货, 好货不便宜。小心没用上两天就被黑了。。呵呵。。.

  2. Carol says:

    i think i’ve ever seen the cheaper price somewhere. lol

  3. Ryan says:

    Definitely a hook - and I’d rather have the kebabs for my money! You can easily get a some-what original template at any number of stock template sites that will only run you $50 (340 RMB) and will be cross-browser compatible, and not look like a 1st year Chinese design program student did the work.

    It’s funny because lower prices is about the worst thing you can do in a service industry for pricing - once you set the bar that low you’ve just stated what your service is worth. It might hurt your competition, but ultimately it ends up hurting your own business way worse.

  4. Junde says:

    haha Ryan, Thanks for your comment.
    You’d be a really cool client if we weren’t already kinda in the same business

  5. Wei says:

    Another “chabudo website” for a price of a lunch. Who will submit this post to Neatorama this time? Who’s turn?

  6. Junde says:

    @Wei Neatorama?

  7. ChinaRussiaUnited says:

    At least cheaper than the companies from other countries who want to trick their own people for $99. usd and then tell them they need a $2000. usd website. Talk about playing tricks , the western companies and corporations are the most unethical and dirty of them all. To even use a mobile phone and open a number you have to sign a contract for 2yrs written by conmen scamsters dressed in business suits with tags like AT&T and Verizon. Why else do you think that most people in the USof A are poor and in China looking for jobs and teaching English?

  8. prabhat says:

    Very nice….I’m sure it will help many people

    IT solution

  9. Wei says:

    @Junde Yes.They are buying this stuff. Always.
    Talking about websites - you can buy 7 rmb DVD on a dusty street of shenzhen or guangzhou with tons of templates.

    340-7=333 rmb net profit, haha.

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