Determining the price of a LOB app [modified]
-
I recently spent a good month and half writing a management application for a hair salon, and they're asking me a good question: how much am I charging for it? I've done several similar projects in the past, but for one reason or another they ended up not getting used. One time, some moron came in half way through my working on the project, offered to do the same thing for my client for $500, and my client ditched me. The guy had no idea what he was doing, and my client ended up getting exactly what he paid for -- a botched company. Not that I was too sure of how much to ask for back during those days, but I'm sure things have changed nowadays. Any pointers? Thanks in advance. Edit: I forgot to mention, the software has several functions: contact management, a periodic emailer for subscribed customers (not spam), customer checkout, a very well-decorated survey app for customers, and marketing reports that I'll be making in the future as the needs arise.
modified on Thursday, September 11, 2008 2:40 AM
-
I recently spent a good month and half writing a management application for a hair salon, and they're asking me a good question: how much am I charging for it? I've done several similar projects in the past, but for one reason or another they ended up not getting used. One time, some moron came in half way through my working on the project, offered to do the same thing for my client for $500, and my client ditched me. The guy had no idea what he was doing, and my client ended up getting exactly what he paid for -- a botched company. Not that I was too sure of how much to ask for back during those days, but I'm sure things have changed nowadays. Any pointers? Thanks in advance. Edit: I forgot to mention, the software has several functions: contact management, a periodic emailer for subscribed customers (not spam), customer checkout, a very well-decorated survey app for customers, and marketing reports that I'll be making in the future as the needs arise.
modified on Thursday, September 11, 2008 2:40 AM
reinux wrote:
offered to do the same thing for my client for $500, and my client ditched me. The guy had no idea what he was doing, and my client ended up getting exactly what he paid for -- a botched company.
Well, if your client wants a sympathy card, he isn't going to get one from me ;P One approach you can do, is to offer to write the apps for your clients at a fair/competitive price, then make up the difference on the future maintenance/support of the app.
"The clue train passed his station without stopping." - John Simmons / outlaw programmer "Real programmers just throw a bunch of 1s and 0s at the computer to see what sticks" - Pete O'Hanlon "Not only do you continue to babble nonsense, you can't even correctly remember the nonsense you babbled just minutes ago." - Rob Graham
-
reinux wrote:
offered to do the same thing for my client for $500, and my client ditched me. The guy had no idea what he was doing, and my client ended up getting exactly what he paid for -- a botched company.
Well, if your client wants a sympathy card, he isn't going to get one from me ;P One approach you can do, is to offer to write the apps for your clients at a fair/competitive price, then make up the difference on the future maintenance/support of the app.
"The clue train passed his station without stopping." - John Simmons / outlaw programmer "Real programmers just throw a bunch of 1s and 0s at the computer to see what sticks" - Pete O'Hanlon "Not only do you continue to babble nonsense, you can't even correctly remember the nonsense you babbled just minutes ago." - Rob Graham
I tried looking around various salary and rates at a few websites. Things seem to have changed lately, with the average salary for developers in 2004 being around $65,000[^], and now at around $80,000 to $110,000[^]. Consultants average around $60 to $70 per hour[^]. Then again, it probably makes more sense to determine the market price of the product itself rather than the amount of work in time. Hmm... I used to work with a friend that came up with contracts and prices and such, but now that he's gone I have to deal with the business side of stuff myself :(
-
I tried looking around various salary and rates at a few websites. Things seem to have changed lately, with the average salary for developers in 2004 being around $65,000[^], and now at around $80,000 to $110,000[^]. Consultants average around $60 to $70 per hour[^]. Then again, it probably makes more sense to determine the market price of the product itself rather than the amount of work in time. Hmm... I used to work with a friend that came up with contracts and prices and such, but now that he's gone I have to deal with the business side of stuff myself :(
I've been down this track in the past (10 no 15 years ago). Do you consider this a one off project or Do you intend to onsell the finished product? Who is going to own the IP? In one case I built the app with no sale price on it, simply chrged $1k support per month, starting from 1st month with a 6 month dev twindow (it was not my primary job). Client was happy as he could change his mind as often as he liked and the only thing to change was the delivery date. I supported and developed the product for 8 years and only stopped when I left the country.
Never underestimate the power of human stupidity RAH
-
I've been down this track in the past (10 no 15 years ago). Do you consider this a one off project or Do you intend to onsell the finished product? Who is going to own the IP? In one case I built the app with no sale price on it, simply chrged $1k support per month, starting from 1st month with a 6 month dev twindow (it was not my primary job). Client was happy as he could change his mind as often as he liked and the only thing to change was the delivery date. I supported and developed the product for 8 years and only stopped when I left the country.
Never underestimate the power of human stupidity RAH
I got tired of all the negotiation and stuff and settled with a $2000 lump sum. I think I'm going to need some sort of manager if I'm going to stay in this job. Some of us just aren't cut out for demanding money.
-
I got tired of all the negotiation and stuff and settled with a $2000 lump sum. I think I'm going to need some sort of manager if I'm going to stay in this job. Some of us just aren't cut out for demanding money.
Now you know why I'm a contractor, you turn up for work, they start paying you, you leave, they stop. I once had a partner who was very business savvy, I went broke he walked away with the business and what's more I was happy. Make sure you have a line drawn in the specs, this far and no more. Do get the client to sign off on the requirements, I know this sounds a little melodramatic but a 2k job can cost you 5 times that in scope creep.
Never underestimate the power of human stupidity RAH
-
Now you know why I'm a contractor, you turn up for work, they start paying you, you leave, they stop. I once had a partner who was very business savvy, I went broke he walked away with the business and what's more I was happy. Make sure you have a line drawn in the specs, this far and no more. Do get the client to sign off on the requirements, I know this sounds a little melodramatic but a 2k job can cost you 5 times that in scope creep.
Never underestimate the power of human stupidity RAH
Aye, well said. Thanks. Both my client and I were a little regretful that we the specs were somewhat vague. It worked out in the end, but the price wasn't what either of us had expected. Thanks again.