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RE: OT (sorry): Web site Pricing
Title: Message
I
would have to agree. I've never done custom development work on an
hourly basis, however, so I can't speak to it's strong points. For
the stuff I have done, people seem to like to know up front what they are
in for in terms of pricing. Usually (and, again, this is strictly from my
own experience), when a company goes for a private contractor to do a job it is
usually a small-ish project and they are most interested in saving money.
An up front agreement on cost will help allay their fears. The bad part
is, you really have to know what you are getting yourself into or the hours you
end up putting in to the project could turn out to be a very small hourly
rate.
Here's
what I recommend:
1-
Always get a good understanding of what you are doing before committing to any
price or time schedule.
2- A prototype of the product cannot be
overrated. Keep in mind that by prototype I do not mean a
fully-functional system. It doesn't even _have_ to be an HTML prototype
(for a web based app). But having something that both you and the customer
can look at and agree on before you start work is critical. For
example, you may think you have gotten all the requirements up front and
completed what was wanted... until the client calls up and says, "Hey where's
the validation? This software allows me to enter Feb 31 as a valid
date!"
3- Take the stance that scope creep is your
friend. Often, especially when working with clients not technically
inclined, they will get a taste of what is possible and start hammering off a
list of 'got-to-haves' that they never knew they wanted (or was
possible) until your whiz-bang software showed them the 'light'.
Being up front and honest in saying that, yes it can be done but not without
more time and money is fine, people usually accept this. But I prefer the
approach in saying, "Let's complete what we've already started first. I'll
keep your wish list in mind and design the software to allow for future
expansion into that functionality." After your initial release, you can
begin discussions for v.2.0. This translates into happier customers
and more gainful employment for you. For large projects, I would recommend
breaking the initial list of requirements into smaller incremental releases
(with incremental payments as well). This really helps keep you and the
client on friendly terms; unmanaged scope creep can very easily and quickly kill
projects and relationships.
4- Freebies. Usually, you find that you can add
one or two items from that 'got-to-have' list with minimal effort. Do
it. For free.
5- Fair costing. While a fair price is always
something to strive for, what I have done recently is to provide a sample
of what some other companies might charge for similar services and let the
client know up-front that they are getting a discount. Good
faith is also something that cannot be overrated. I once told a client
that I did a web search of 10 consulting company prices and that the average
cost for the same project with another company would be X. I
then told the client that since I had done work for him before and he was a
great customer (all true), I would do it for .75 * X. 25% percent is a
steep discount, he really appreciated the thought and ended up insisting that he
pay me the full amount of X. And, he wanted more work done than he
originally ordered. Don't do this as a gimmick-- that (IMHO) is easy to
see through. Be fair and honest and understand that everybody has bills to
pay and they _will_ remember it.
6- Warranty. In an example of pride in my work, I
_always_ guarantee the product for some period of time (usually three
months). This is good in that it gives them time to find any of those
little bugs hiding in there, and saves you from getting support calls even in to
your old age.
7- Closure documentation, and the beer
invitation. After completing the project, provide
some documentation. This can usually be in the form of some
small user manual (Word document), along with some technical specs helpful for
whomever (hopefully you) may expand on this project in the future. Along
with this, invite the client out for a beer (your treat). This
provides good closure, even if the beer date never actually happens. Do
this even if you are in negotiations for a v2.0-- this is a good segue into
those negotiations. And, do this especially if at any time during the
project there were any issues that maybe didn't get entirely
resolved.
Sorry to ramble, I guess I went into more than just
costing considerations. But the guidelines above have proven to me to be
life savers. Again, this is
only from my experience in part-time/weekend projects. I would love to
hear other thoughts on the issue.
... Mike
I would figure in a good contracting hr/rate. Then estimate
the time it will take to do it. Include in the time for consultation,
materials, testing and implementation and maybe a more give them a fixed
price. If you finish earlier than expected give them some money back they will
always remember that and will pass the word that you saved them money and
time. If you do it on an hourly or features bases (depending on how deep their
pockets are) most of the time they will start to cut back to cut cost. If you
can get all the requirements and come up with a fixed price its usually a win
win for both parties. You will get paid what you worked and they will get the
application/system that they really wanted.
Jay
-----Original Message-----
From:
Stieglitz Noel (fin2nxs) [mailto:fin2nxs@ups.com]
Sent: Thursday, November 07, 2002 1:46 PM
To:
ajug-members@ajug.org
Subject: RE: OT (sorry): Web
site Pricing
It will be a website with:
"Library" of media to check out posted by users for a fee (cc
transactions).
Public and Private Chat rooms w/webcam
access. The chat rooms will be
administered by
users of the website (create own room and administer it).
I haven't got the requirements yet, so I am not sure what is
involved. I
was really just asking for maybe
some high-level rules that may apply to any
web
project, or, for those of you with experience, your own personal
preference.
Thanks again,
Noel
-----Original Message-----
From: James
Mitchell [mailto:jmitchtx@telocity.com]
Sent: Thursday, November 07, 2002 1:25 PM
To: ajug-members@ajug.org
Subject:
RE: OT (sorry): Web site Pricing
That depends on what you are selling.
James Mitchell
Software
Engineer/Struts Evangelist
http://www.open-tools.org
"Only two things are infinite, the universe and human
stupidity, and I'm not
sure about the former."
- Albert Einstein (1879-1955)
> -----Original Message-----
>
From: Stieglitz Noel (fin2nxs) [mailto:fin2nxs@ups.com]
> Sent: Thursday, November 07, 2002 1:04 PM
> To: ajug-members@ajug.org
> Subject: OT
(sorry): Web site Pricing
>
>
> Hi all,
>
> I am about to start a large web
project, and I don't know anything
> about
pricing. Should I charge hourly or by feature? Suggestions for
> quick reads (online/books)? Your input is
greatly appreciated.
>
>
Noel
>
>