Behind the Pixels: What Really Drives UI/UX Design Costs

What Do UI and UX Mean?

Some may use UI and UX as interchangeable terms, but they are two distinct concepts. UI stands for user interface, the surface users use to communicate with software or hardware. UI design refers to the creation of elements that users use to carry out such communication, focusing on their look and feel.

UX stands for user experience. It is the term used to describe the total experience an end-user or customer has when using a system, product, or service. UX design focuses on creating digital products that aren’t just simply visually appealing but also intuitive, coherent, and user-friendly.

The Human and Business Value of UX Design

It can be difficult to see the immediate value of UI/ UX design, as the results often aren’t tangible. However, the impact of UX designs is often subtle and/ or long-term. There have been multiple studies that have determined the importance of UX design.

• British researchers have found that a website’s look and feel are primary factors driving users’ first impression. When responders were asked to give feedback regarding the website, 94% of them were focused on the website.
• UX/ UI design is the foundation of a successful product and high ROI. The return on investment for UX design is $100 for every $1 spent, according to Forrester research. This is equivalent to an ROI of 9,900%, which is undeniably impressive. The same research highlights that a well-designed user interface can increase website conversion rates by up to 200%, while enhancing the overall user experience can drive conversions by as much as 400%.
• 88% of users will abandon a site after a bad experience.
• PWC reported that just one bad experience is enough for 32% users to stop doing business with a brand they once loved.

These statistics go to show that UX and UI designs are more than pretty interactive buttons. They play a large role in shaping user perception of the brand, and even determine customer retention and ROI.

Properly investing in UX and UI design is crucial. Let’s take a closer look at the costs involved in the following sections so you can budget and plan accordingly.

Project Scope & Feature Complexity

Project complexity is one of the biggest drivers of UI/ UX design costs. Depending on the project’s scope and features, the cost will go up or down.

• If the app only requires straightforward design needs, such as a limited user flow or little to no back-end complexity, the app is much cheaper.
• If the app requires advanced features, involving deep research and multiple stakeholders, the development time will be longer, testing will be more complex, and thus, the prices are higher.

A project’s scope often directly correlates with the app’s feature complexity. The number of screens, animations, and third-party integrations requires more resources and time, so the costs will increase. This is not to mention the time it takes to conceptualize, develop wireframes and prototypes, and test the concept. Planning features clearly beforehand is crucial to keeping UI and UX costs under control.

Custom Vs. Using Existing Brand Assets

An app’s style plays a big role in the final UX/ UI costs. The style determines how complex the design elements will be, whether they can utilize stock images or need to create them from scratch, and whether there are UI kits readily available. In a cheaper project, you can reuse the design elements from other projects or buy stock images to save time.

However, when it comes to specific branding strategies and interactive elements (e.g., buttons and icons), designers are often required to create them from scratch. This often takes several trials and errors until the design meets the client’s requirements, which in turn raises the overall design fees.

Designer’s Experience & Niche Expertise

Senior designers with years of experience often charge a higher rate, but they will also take fewer hours to complete the project, require fewer revisions, and allow you to make decisions faster. This, of course, is not the sole pricing factor. The costs will go up the more niche your required skills become.

Let’s say you need experts to redesign the app to increase the likelihood of customers successfully adopting your product. This is a niche skill related to a particular, narrow business problem, and most likely takes you time to hire someone with such specific experience.

In-House Team Vs. Outsourcing

There is no one-size-fits-all guide to determine whether a business should build an in-house team or outsource UI UX designs. It depends on the business’s goals, long-term plans, budgeting, resources, and more. However, we can glean the different impacts of in-house teams and outsourcing.

In-house Team

An in-house team gives the company full control and influence over every decision and process. There are often little to no barriers to communication, and team members are aware and aligned with the company’s culture. The cost spent on in-house teams is consistent and predictable.

However, the recruitment process can be both expensive and time-consuming, and sometimes teams lack specific skills. Companies also need to pay for employees’ benefits, training, and other overhead costs.

Outsourcing

There are several outsourcing methods, and each impacts the overall UI/ UX costs differently.

• Freelancers: A freelance designer is cheaper compared to a full-fledged design agency. They allow the company to scale up and down quickly, depending on the specific skill sets required for the project. Significant disadvantages of freelancers, however, include the varying quality of their deliverables, limited availability, and wonky coordination, especially when the project involves numerous freelancers at once.
• Local design agency: A design company provides you with a full team – a project manager, a UX researcher, UI designers, employees who do market research, etc. They often offer a wide range of skills and a structured approach to the UI/ UX design process. However, the hourly costs may vary, especially if you live in an area with high living costs. You’ll also need to give up some control over the project.
• Outsourcing to another region/ country: This form of outsourcing (also referred to as nearshoring or offshoring) brings you all the benefits of local design agencies, but with the added advantage of location. Designers in locations where living costs are lower and vice versa. For example, your company is located in San Francisco, which is home to Silicon Valley, which means the hourly rates and living costs are high. If you choose to outsource to Vietnam, where living costs are lower, the talent pool is just as wide, which will automatically lower design costs and save you money in the long run.

However, it’s important to keep in mind that outsourcing comes with communication challenges (different time zones, culture and language barriers) and ensuring quality deliverables, so it’s essential to check the company’s reputation and past work to ensure their credibility.

Revision and Support

The design process will inevitably require revisions and iterations. Numerous iterations and revisions can incur higher costs, so make sure you discuss this matter with your vendor beforehand.

Also, not every agency supports revisions post-launch. If you receive feedback from users and wish to adjust elements, you will likely be billed extra.

Platform Compatibility (Web, iOS, Android, Multi-platform)

Choosing a platform for the app has different cost implications. Designing and developing different UI/ UX designs for each platform (iOS, Android, or web) will drive the cost up. Opting for cross-platform design is generally a cheaper approach, but the app will need third-party integrations to access native device features. This can hurt user experience, so keep this in mind when deciding the app’s platform compatibility.

Timeline & Urgency of Delivery

Numerous factors need to be considered when planning a software development project: the scope, budget, resource allocation, and timeline. A well-planned timeline can save you costs in the long run. If your deadlines are rushed and the timeline is tight, the design team will need to allocate more resources and work longer hours, resulting in extra costs. A more lax timeline gives the design team more space to finish the requirements properly, thus using fewer expenses.

Industry-Specific Requirements & Compliance (Healthcare, Fintech, Etc.)

UI and UX designs aren’t simply meant to be aesthetically pleasing. They also need to meet certain industry standards and regulatory compliance.

• To ensure data privacy and security, designers need to think about encryption-friendly UI, a user flow that comprises a secure log-in, consent forms, and more. This requires deep research and even collaboration with the legal team.
• To pass platform-specific guidelines like Apple Human Interface Guidelines and Google Material Design, the team needs to ensure design consistency across devices while passing the platform’s approvals.
• The team needs to ensure color contrast, text size, keyboard navigation, and screen reader compatibility.

While these factors might seem minor separately, they can quickly drive up design costs as each adjustment or iteration might add extra costs.

By Project Complexity

By Deliverables

By Geographical Location (Hourly Rate)

By Platform Compatibility

By Customization Level