FLASH: RE: gettin' paid

[Phillip Kerman]

The way you describe your business is interesting... but it's just not the

way I work personally.


I simply do hourly.  People sometimes ask for fixed bids and I just let them

tell me how many hours they want (at my rate) and then I stay within

that--simple.  They must understand that money is the priority and the set

of features etc. will be modified to stay within their budget.  I guess it

helps if they believe your time is valuable.. and in my case, my clients

MUST provide the management.  I keep them informed, they decide how much to

invest.


I think you can actually make much more doing fixed bids...but like you say,

the bidding process is costly.  If you go that route I think you just need

to incorporate that "investment" as a cost of doing business.  One would

hope you're good enough that you win enough contracts to make it worthwhile.


I have, on the occasions when clients what an fixed price, charged for the

time to put together a bid.  After all (my argument is) they can use the

analysis and specification (aka "bid") even if they don't hire me... but

they need to pay for the time invested as it has value.


Another way I've heard of people doing it... is to have 3 phases to a

project and charge for each.  You sort of limit your potential loss that

way.


You can do it however you want... I'm not saying one way is better than the

other.  However, the main part of your post makes me think to say: there's

nothing wrong charging for analysis.  It also reminds me that  "price

follows value".  It's pretty important that your client values what you're

doing (so they're willing to pay for it).  If you're doing work that isn't

valued by the client... and not valued by you (as an investment or

whatever)--then you shouldn't be doing that work.


Phillip



> Date: Thu, 11 May 2000 23:03:58 -0400

>

From: "Gregg Caines" <cainussprint [dot] ca>

> Subject: Re: RE:FLASH: Hyperride - Ft. Lauderdale

>

> One thing I'd love to know is how people deal

> with the contracts where the design has to be

> done before there is a signing.

>

> We often run into situations where the contract

> should not be written until a complete

> requirements analysis and specification is

> complete, but since this a big portion of the

> development, it is a little unnerving to do it

> before the contract is signed.

>

> It would be nice to write this into the contract

> too, but most clients want to pay on a per-project

> basis, so they want to know how much it will cost

> before they sign the contract.

>

> The catch-22 is that it is difficult to calculate the

> cost without first doing the planning...

>

> How do others handle this?

>

> - ---------------------------------------------------

> Gregg Caines

> n e o m e t r i x  systems inc.

> http://www.neometrixsystems.com

>

gcainesneometrixsystems [dot] com

>

> >

> > What other problems / solutions do independents have?

> >

> > Phillip

> >



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