A few years ago I ran a small IT dealership.  I learnt that problem
customers stay problem customers, things never get better.  And the longer
you keep them on your books the worse it gets.  While I was dealing with the
idiots (and that's being kind) my competition was getting the good stuff.
Had I had more sense and experience I would of dumped these idiots very
early on and they would of been knocking on the door of my competitors and
giving them the grief.

Bad customers aren't just bad news because they pay late and their feedback
to you is never good.  The longer you keep them on your books the longer
they are bad mouthing you behind your back to other potential customers.  So
get rid.

I currently charge 50% up front and 50% on completion for development based
on total project cost, not an hourly rate.  The idea of the 10% on hold I
think is really good, but I think 90 days is a bit long and I'd probably go
for 30.

I'm seeing some extremely wide variances in project costs in the market.
>From the stupidly cheap (how can they live on that level) to the incredibly
expensive (the customer won't come back when he finds out he has been ripped
off).  So I am wondering what realistic rates are in the UK and would
appreciate feedback.

Thanks,

Jenny




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