The question, Why is there overpriced Web development? has a simple answer and a simpler solution. There is overpriced Web development because there are consumers that will pay the high price. Web development started to be overpriced when the Internet began to be the home of successful entrepreneurs who, while they knew their own products, ideas and services, knew nothing about the Internet. They paid dearly for Web development experts who could launch their online business and make them a great deal of money. They didn't balk at the overpriced Web development fee because they didn't know that it was overpriced.
People pay for others to do what they don't know how to do, don't care to do, and / or don't have the time, energy or inclination to learn how to do. The less the customer understands what the Web developer offers, the greater the overpricing can be without that customer balking.
So, the answer to why there is overpriced Web development is that there are people who don't care that it's overpriced and can't do it themselves.
The solution to the Web development overpricing then, is to learn how to develop your Web site yourself, or learn enough about the development to realize what is overpriced and what isn't. Once you understand at least some rudimentary technology you can at least do some Web development comparison shopping on your own.
To avoid overpriced Web development learn the basics of the workings of the Internet and the creation and maintenance of Web sites. Learn what it takes to create a site, to launch it, to keep it running. Comparison shop at least ten different Web development firms, and note the variations in each offer. Advise each of what the other has and their fees (assuming it is lower.) Document each offer, check the references each provides and ask pointed questions. Start a bidding war, and you'll cut down on overpriced Web development.
