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  3. Yes, my first customers! But i don't know how much to charge him :(

Yes, my first customers! But i don't know how much to charge him :(

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  • T The_Real_Chubaka

    I think Leppie might be the person who can give me the best advise (he also lives in South Africa) but, i need words of wisdom from anyone who is willing to give me some... I finally have my first customer. That is a good thing :thumbsup: The only problem is that i don't know how much he should pay me. He would like me to tell him how much i charge. This is what the project looks like: There is a database with a dozen tables. Some basic processing have to be done on those data. He want me to develop a windows application with a user interface. It is a application that will be used in a gym: Every time you go to the gym you have fill in all the exercises you have done. The program is supposed to show you your progress. There are also other details like food recommendation.... I am meeting him on Saturday to give him a presentation of what i will do. I have a UML diagram and i am done writing the prototype of my classes. But I also don't know how long i should tell him the project will take. :confused: Anybody, please, give me some words of wisdom. Please Leppie, don't let me down! Regards, Herve

    H Offline
    H Offline
    hairy_hats
    wrote on last edited by
    #24

    "Walking on water and developing software from a specification are easy if both are frozen." - Edward V Berard

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    • L Lost User

      An estimating formula I was shown recently is (2*B + E + 3*W)/6 B = best estimate (optimistic) E = expected W = worst case A good way of correcting your initial estimate on time required.

      Join the cool kids - Come fold with us[^]

      M Offline
      M Offline
      megaadam
      wrote on last edited by
      #25

      But in fixed price consulting projects there is another huge risk, and this must be kept in mind. The customer will "always" come with changes along the way. (modifications, extensions, he sees the first GUI : "How about adding a button for this?", "I really need a graph of this too", "I need to add this data to the database, but the app must remain compatible with the old DB" ) That will cost you extra work. So... methinks you need to have the guts to inform your customer that such changes will add to the total cost of the job. Not so east, especially if both customer and consultant are relatively fresh in the business of ordering/delivering contract work. And when he comes with those changes during the project (trust me he will, everybody does), you must stand up and hold your ground. You need to agree that: "Change Requests will be charged on a per case basis.", depending on your relation to the guy you may put it down in writing (good idea) or agree verbally. Good Luck!

      ..................... Life is too shor

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      • K Kelvin Armstrong

        I had the same problem with my first customer :sigh: As I had taught myself to code - I didn't quite know what "should" be charged. I didn't feel comfortable going with a specific charge as some things may require Google investigation - and technically was furthering my career opportunities. So on that basis, I looked at how much work would be involved in creating the app (also a DB with a winforms UI), and decided on how much would I be happy in receiving as appropriate remuneration for the effort. It took about 140 hours to complete and I charged R4000, which was about R30 an hour.

        B Offline
        B Offline
        Brady Kelly
        wrote on last edited by
        #26

        I work on the principle that my clients only pay for what I know, not what I must Google, so I charge a fixed price for a number of hours, but if I quote 24 hours, I only promise delivery next week, to allow for me getting stuck etc.

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        • L Lost User

          An estimating formula I was shown recently is (2*B + E + 3*W)/6 B = best estimate (optimistic) E = expected W = worst case A good way of correcting your initial estimate on time required.

          Join the cool kids - Come fold with us[^]

          M Offline
          M Offline
          Marcus_2
          wrote on last edited by
          #27

          Trollslayer wrote:

          An estimating formula I was shown recently is (2*B + E + 3*W)/6 B = best estimate (optimistic) E = expected W = worst case

          We use a different variant of that: (B + E * 3 + W) / 5 Works resonably well for us.

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          • M megaadam

            But in fixed price consulting projects there is another huge risk, and this must be kept in mind. The customer will "always" come with changes along the way. (modifications, extensions, he sees the first GUI : "How about adding a button for this?", "I really need a graph of this too", "I need to add this data to the database, but the app must remain compatible with the old DB" ) That will cost you extra work. So... methinks you need to have the guts to inform your customer that such changes will add to the total cost of the job. Not so east, especially if both customer and consultant are relatively fresh in the business of ordering/delivering contract work. And when he comes with those changes during the project (trust me he will, everybody does), you must stand up and hold your ground. You need to agree that: "Change Requests will be charged on a per case basis.", depending on your relation to the guy you may put it down in writing (good idea) or agree verbally. Good Luck!

            ..................... Life is too shor

            M Offline
            M Offline
            Marcus_2
            wrote on last edited by
            #28

            megaadam wrote:

            But in fixed price consulting projects there is another huge risk, and this must be kept in mind. The customer will "always" come with changes along the way. (modifications, extensions, he sees the first GUI : "How about adding a button for this?", "I really need a graph of this too", "I need to add this data to the database, but the app must remain compatible with the old DB" ) That will cost you extra work.

            Wrong, about the last part anyway.;) As someone said at a seminar I attended, thats where all the profit and money lies. So you get your customer, you draw up a contract on what is going to be done and agree on the price. When the first change request comes in you tell them it's not part of the contract and inform them that you can do it, but it will add time AND cost to the project (time and cost is decided per CR, with a relativly high cost). So the extra work will not cost you anything, it will cost the customer (and they'll really think about what CR's they actually want). I agree with you, it's something that has to be considered.

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            • L leppie

              hervebags wrote:

              Please Leppie, don't let me down!

              I would say about R150 - R250 an hour. But keep in mind, how long it will take. Time estimation is important here, and only you can be the judge how long it will take you. That comes with experience. I have seen supposedly experienced people completely underestimate themselves over and over by a factor of 8 (yes, eight!) times. That is a hard one, I tend to over estimate a little and give extra, or make the customer happy by coming in less than the estimate price. Also beware of possible screw ups on your part that may happen, like the dog eating your source code, etc. So to start, start with the high number, and then let the customer bargain a bit. No point going low to start with, then it will just go lower. Lastly, make sure you have a proper after sales support contract, in case you need to provide extras. Also take into consideration possible bugs to fix, that may be your fault, or just a lack of specification. Hard call again whether one should charge for bug fixes. If it is a small one, then it does not matter that much. As long as you can fix it fast (and correctly) :)

              ((λ (x) `(,x ',x)) '(λ (x) `(,x ',x)))

              T Offline
              T Offline
              The_Real_Chubaka
              wrote on last edited by
              #29

              Thanks, Leppie. :thumbsup:

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              • L leppie

                Well said :)

                ((λ (x) `(,x ',x)) '(λ (x) `(,x ',x)))

                T Offline
                T Offline
                The_Real_Chubaka
                wrote on last edited by
                #30

                leppie wrote:

                Well said

                Indeed!

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                • M Mark_Wallace

                  hervebags wrote:

                  I am meeting him on Saturday to give him a presentation of what i will do. I have a UML diagram and i am done writing the prototype of my classes.

                  UML? Why are you calling me names, and what's an emmal, anyway? Classes? Hey, I'm not going back to school! You can keep that sh1t! You'll be talking to a guy who runs a gym, not to a dev in the office next to yours. He won't give a bluddy blue damn how you process the data; he'll want to know about what his customers will have to do to enter data (so it had better be damned simple and intuitive), and how they'll get the feedback. Mock up a user interface, with all the things you think it needs, and print out hard copies, so he can cross out the bits he doesn't like, and draw the things that he wants.

                  ah, the line-feed-after-a-formatting-tag problem is fixed! What bliss!

                  T Offline
                  T Offline
                  The_Real_Chubaka
                  wrote on last edited by
                  #31

                  :-D Ok, i get it. I am not gonna give him all those details. ;P

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                  • B Brady Kelly

                    Hmmm, I would recommend going with WinForms with C# given your experience/qualification. The jump to basic C# shouldn't be any problem, but maybe you should look at something like MS LightSwitch, which allows you to build apps using a designer and very little code. Also, you can always shout if you need any help. Where do you stay?

                    T Offline
                    T Offline
                    The_Real_Chubaka
                    wrote on last edited by
                    #32

                    Brady Kelly wrote:

                    Also, you can always shout if you need any help. Where do you stay?

                    Hey, thanks. I live in Plumstead, Cape town. Do you live in Cape town too?

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                    • T The_Real_Chubaka

                      Brady Kelly wrote:

                      Also, you can always shout if you need any help. Where do you stay?

                      Hey, thanks. I live in Plumstead, Cape town. Do you live in Cape town too?

                      B Offline
                      B Offline
                      Brady Kelly
                      wrote on last edited by
                      #33

                      No, I'm a thoroughbred Jozi boy.

                      T 1 Reply Last reply
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                      • K Kelvin Armstrong

                        I had the same problem with my first customer :sigh: As I had taught myself to code - I didn't quite know what "should" be charged. I didn't feel comfortable going with a specific charge as some things may require Google investigation - and technically was furthering my career opportunities. So on that basis, I looked at how much work would be involved in creating the app (also a DB with a winforms UI), and decided on how much would I be happy in receiving as appropriate remuneration for the effort. It took about 140 hours to complete and I charged R4000, which was about R30 an hour.

                        T Offline
                        T Offline
                        The_Real_Chubaka
                        wrote on last edited by
                        #34

                        I wouldn't mind getting R30 an hour from my first customer.

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                        0
                        • B Brady Kelly

                          No, I'm a thoroughbred Jozi boy.

                          T Offline
                          T Offline
                          The_Real_Chubaka
                          wrote on last edited by
                          #35

                          No problem, bru. As long as we are all in Mzanzi :)

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                          • T The_Real_Chubaka

                            I am a c and C++ programmer. I have about 4 years of experience with console applications. I am a researcher (computer vision). If this project was a console application i would do it in maximum 2 weeks. I have used the MFC framework before but, i'm not very familiar with it. That is the only part of the project that will take longer to do. I have been playing with windows forms this past week and it is pretty fun.

                            M Offline
                            M Offline
                            Mycroft Holmes
                            wrote on last edited by
                            #36

                            So basically you have no experience building applications with a UI. As BC suggested go with winforms and C#, the transition will be pretty painless. As the project will not be specified in detail and the specification will not be signed off and nailed down I suggest you double the 2 weeks development time. This will cover you for some scope creep and testing, you probably have not factored in testing. I used to take the 2 weeks, double it and then double it again, this would be my opening estimate, then allow the client to wittle it down by 10-15% to make them feel better and you might break even. I'd use BCs hourly rate. [edit] for gods sake factor in down stream support, this sent me broke when I was doing this type of work [/edit]

                            Never underestimate the power of human stupidity RAH

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                            0
                            • L Lost User

                              An estimating formula I was shown recently is (2*B + E + 3*W)/6 B = best estimate (optimistic) E = expected W = worst case A good way of correcting your initial estimate on time required.

                              Join the cool kids - Come fold with us[^]

                              T Offline
                              T Offline
                              The_Real_Chubaka
                              wrote on last edited by
                              #37

                              That makes it about R6000. Not bad. :)

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                              • M megaadam

                                But in fixed price consulting projects there is another huge risk, and this must be kept in mind. The customer will "always" come with changes along the way. (modifications, extensions, he sees the first GUI : "How about adding a button for this?", "I really need a graph of this too", "I need to add this data to the database, but the app must remain compatible with the old DB" ) That will cost you extra work. So... methinks you need to have the guts to inform your customer that such changes will add to the total cost of the job. Not so east, especially if both customer and consultant are relatively fresh in the business of ordering/delivering contract work. And when he comes with those changes during the project (trust me he will, everybody does), you must stand up and hold your ground. You need to agree that: "Change Requests will be charged on a per case basis.", depending on your relation to the guy you may put it down in writing (good idea) or agree verbally. Good Luck!

                                ..................... Life is too shor

                                T Offline
                                T Offline
                                The_Real_Chubaka
                                wrote on last edited by
                                #38

                                Thanks. Very good advice.:thumbsup: I don't want to give the guy a hard time though. He is my first customer

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                                0
                                • C Chris C B

                                  Ditto. I charge 30% to start, 30% on delivery of a working prototype, 30% on going into production, and 10% after three months warranty, or close of last bug reported during warranty, whichever is the later. Never had a payment problem.

                                  T Offline
                                  T Offline
                                  The_Real_Chubaka
                                  wrote on last edited by
                                  #39

                                  Thank. I think i will do the same.

                                  1 Reply Last reply
                                  0
                                  • T The_Real_Chubaka

                                    I think Leppie might be the person who can give me the best advise (he also lives in South Africa) but, i need words of wisdom from anyone who is willing to give me some... I finally have my first customer. That is a good thing :thumbsup: The only problem is that i don't know how much he should pay me. He would like me to tell him how much i charge. This is what the project looks like: There is a database with a dozen tables. Some basic processing have to be done on those data. He want me to develop a windows application with a user interface. It is a application that will be used in a gym: Every time you go to the gym you have fill in all the exercises you have done. The program is supposed to show you your progress. There are also other details like food recommendation.... I am meeting him on Saturday to give him a presentation of what i will do. I have a UML diagram and i am done writing the prototype of my classes. But I also don't know how long i should tell him the project will take. :confused: Anybody, please, give me some words of wisdom. Please Leppie, don't let me down! Regards, Herve

                                    E Offline
                                    E Offline
                                    Ennis Ray Lynch Jr
                                    wrote on last edited by
                                    #40

                                    Rate Calculator[^] Bill hourly

                                    Need custom software developed? I do custom programming based primarily on MS tools with an emphasis on C# development and consulting. I also do Android Programming as I find it a refreshing break from the MS. "And they, since they Were not the one dead, turned to their affairs" -- Robert Frost

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                                    • M megaadam

                                      But in fixed price consulting projects there is another huge risk, and this must be kept in mind. The customer will "always" come with changes along the way. (modifications, extensions, he sees the first GUI : "How about adding a button for this?", "I really need a graph of this too", "I need to add this data to the database, but the app must remain compatible with the old DB" ) That will cost you extra work. So... methinks you need to have the guts to inform your customer that such changes will add to the total cost of the job. Not so east, especially if both customer and consultant are relatively fresh in the business of ordering/delivering contract work. And when he comes with those changes during the project (trust me he will, everybody does), you must stand up and hold your ground. You need to agree that: "Change Requests will be charged on a per case basis.", depending on your relation to the guy you may put it down in writing (good idea) or agree verbally. Good Luck!

                                      ..................... Life is too shor

                                      L Offline
                                      L Offline
                                      Lost User
                                      wrote on last edited by
                                      #41

                                      This can be used to estimate your time, you don't have to base a quote on it.

                                      Join the cool kids - Come fold with us[^]

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                                      • D Dalek Dave

                                        £40 per hour. (Convert to Krugerands at whatever rate).

                                        ------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC Link[^] Trolls[^]

                                        S Offline
                                        S Offline
                                        Soulus83
                                        wrote on last edited by
                                        #42

                                        Dalek Dave wrote:

                                        £40 per hour

                                        Man, that's a good price! 2.5 £ it's the base daily salary over here so you can see the difference! now I'm seriously thinking on sell outsourcing to you guys :-D

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                                        • E Ennis Ray Lynch Jr

                                          Rate Calculator[^] Bill hourly

                                          Need custom software developed? I do custom programming based primarily on MS tools with an emphasis on C# development and consulting. I also do Android Programming as I find it a refreshing break from the MS. "And they, since they Were not the one dead, turned to their affairs" -- Robert Frost

                                          T Offline
                                          T Offline
                                          The_Real_Chubaka
                                          wrote on last edited by
                                          #43

                                          Thanks, the calculator is quite helpful! :thumbsup:

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