Re: FLASH: RE: gettin' paid

[Gregg Caines]

That's an interesting way of looking at all that

time spent planning...an investment.  I'd still

like to minimize my investment (i.e. 'risk') in any

bid for a contract, but I know that minimizing

the time spent planning leads to trouble after

the contract is signed.


We haven't found it to be very advantageous to

charge hourly, and clients always want fixed

prices , but I do see how an hourly rate can

reduce the risk.


The 'three phases' idea was a good one too, and

one that we often employ, though we've never

really included requirements analysis as one of

the phases...that would be nice if clients would

go for it.


---------------------------------------------------

Gregg Caines

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

http://www.neometrixsystems.com

gcainesneometrixsystems [dot] com

> 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




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