FreeLists / webproducers / [webproducers] Re: fwd: proposal pricing question

["Katherine Gray" <kat@xxxxxxxxxxxxxxxxxxxx>]

That's a great idea. We always emphasize that the estimate is just that--an 
estimate--and we talk about how we'll updated the scope/budget/schedule after 
the first kick-off meeting. Then we talk about change orders and when they're 
used and give the client a blank one so they'll recognize it when they get one 
for real.

-Katherine
  ----- Original Message ----- 
  From: Michael J. Shirey 
  To: webproducers@xxxxxxxxxxxxx 
  Sent: Friday, May 16, 2003 4:40 AM
  Subject: [webproducers] Re: fwd: proposal pricing question



  Can you build a contingency into your proposal?  Give an average "per page"
  cost or something to that effect?  Insist that the pricing can change as the
  scope changes?  Make sure you have a "change form" handy for when this
  happens.

  I can see two reasons why people would make such vague requests.  One is so
  that they can change their minds but hold you to a price.  The other, and
  more common, is when the clients simply do not know enough to provide a
  solid request.

  The result is the same, and both sides need to be prepared for the changes
  that will incur.

  Michael Shirey
  Web Producer
  http://www.maertz.net

  -----Original Message-----
  From: webproducers-bounce@xxxxxxxxxxxxx
  [mailto:webproducers-bounce@xxxxxxxxxxxxx]On Behalf Of Katherine Gray
  Sent: Thursday, May 15, 2003 6:15 PM
  To: webproducers@xxxxxxxxxxxxx
  Subject: [webproducers] Re: fwd: proposal pricing question


  >>Now the point is the following. How do I price the work in order to outbid
  other porposals and avoid shooting myself in the foot ?

  You may not be able to do both. Concentrate on developing a budget that's
  accurate in terms of hours and priced so you can turn a profit. Pitch your
  best ideas and charge what you need to charge to be profitable. If you
  don't, you're setting yourself up for managing a client with unrealistic
  expectations and losing money. If the client isn't interested in your
  approach, or can't afford your services, move on. It's better to keep
  searching for work that fits your company than filling up your team's
  capacity on money-losing projects.

  There are exceptions to this rule, of course. There are reasons to take on a
  client or project other than immediate profitability (immediate cash flow,
  building a relationship, publicizing a high-profile job).  If none of these
  things apply, just charge what you need to charge to be profitable.



  ----- Original Message -----
    From: m o r r y
    To: webproducers@xxxxxxxxxxxxx
    Sent: Thursday, May 15, 2003 1:24 PM
    Subject: [webproducers] fwd: proposal pricing question



    I wanted to forward this question to the list because I thought it would
  be
    an interesting point of discussion.
    I did not write I'm just forwarding it along.
    --------------------------------------------------------------------------
  --
    ---------------------------------------

    ...Bidding for the development of a web site. It includes some layout work
    (design is done by others) and quite a bit of server side work. Making
    abstraction from layout (it not yet clear how many pages there will be) I
    need to implement the following modules:

    - search module (generation of a listing of clips from a database back
  end.
    Clip database is created by someone else)
     - shopping cart module (generation of a list of selected items)
     - mail module (need to send information at check out time to the site
    administrator about users' selections)
     - users database generation and management (database keeping track of the
    user )
     - admin interface (inclusive of the ability to manage the databases and
  run
    a routine matching clip database info with file archive)

     Now the point is the following. How do I price the work in order to
  outbid
    other porposals and avoid shooting myself in the foot ?
     Any idea about average development cost for small web site that are
    inclusive of a server component ?

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__________________________________________________________________________
To unsubscribe send a blank message with unsubscribe in the subject to 
webproducers-request@xxxxxxxxxxxxx

To access our webform (instead of sending e-mail) for popular commands 
including subscribe, unsubscribe, digest, and vacation  visit  
www.WebProducers.org. You can also access the list archive at the website.

Questions and comments are welcome just e-mail  info at webproducers dot org