I'm learning a lot about Agile, I'm working in a small web development company. The one big issue remains: Billing
For example when working in story points, We can calculate that the team has a velocity of 20 storypoints / week (iteration).
Now to calculate the project cost we could measure the hours per week and multiply by price so we would get
money = <hours/iteration> * <no. of iterations> * <people> * <hourly rate>
But since the general way of working is a website gets designed first by the designers, and then developed, it's not realistic that the whole team will be working on the site at all times.
When I calculate the price using the above method our web projects come out as 5x the price they are now.
Does anyone have experience with this?