How do you decide what is the right price? What are you paying for exactly? A website will be your brands online identity, new customers will interact and engage with your business online first before they visit your physical store/office if this is the case. So the next question you need to ask yourself, how important is your brand identity to you?
We get a lot of clients who have placed very little emphasis on setting up an effective online presence and they often get their friend or family member to put up a website. This website is often poorly designed and is actually an embarrassment rather than a fine tuned branding tool. They often spend very little on this part and as the old saying goes, you pay peanuts, you get monkeys.

Let’s look at it this way. Dave has a Lamborghini Aventador and Jim has an old Ford Fiesta. Both have seats, engine and four wheel’s etc. and both will get you from point A to point B. But one costs significantly more than the other and turns more heads and looks a million times more attractive and the other just doesn’t get noticed much and looks plain and boring. So which one would you rather have?
Another example can be that you want to buy a pair of shoes and one shop you walk into is dull, boring and the staff are not helpful and the other shop opposite the road is bright inviting and the staff are knowledgeable and helpful.

Both scenarios are pointing to two things that make a website work for you. Aesthetics and Functionality. Get these two things right and your customer experience will be excellent and their loyalty with your brand will run deep.
So going back to the original two questions, essentially you are paying for the expertise and experience of someone who will deliver something that you can proudly show off to your customers and will become an integral part of your business and as for the price that depends on how badly you want your business to succeed.