Thank you X Katja for the insight.
Truly a great help.

Guess it will take a while before we get really correct figures here;
Software development isnt really a known profession but i think in the next
2 years it will be the next major goldmine!

Cheers

Chris.
----- Original Message -----
From: "Katja Bergman" <[EMAIL PROTECTED]>
To: <[email protected]>
Sent: Thursday, July 14, 2005 9:31 PM
Subject: [delphi-en] Re: [OUT OF TOPIC] Costing


> Hi Chris,
>
> Starting a programming project first means you have to find a
> customer and talk with them about their needs. Some customers will
> pay you for this but in general these kinds of negotiations are done
> free of charge, unless they are taking a long while.
> When the customer has made their wishes clear, you have to check
> internally to see if you and your team can do it with the resources
> that are available for you. And generate a list of things you will
> need in addition to what you already have.
> You then return to the customer and start discussing more seriously
> about how to continue. In general, you will charge them about one or
> two days of work but in return will provide them a well-documented
> overview of what you can create and what you will need to do this
> project. You will also have to estimate the amount of time you will
> need to do this project.
> Remember to generate clear, but non-technical documentation for your
> customer. Preferably, print it by using a color printer and also
> print a nice hardcover and send it to the client nicely bound.
> Multiple copies would even be more appreciated. This is an expensive
> step, of course, since you're probably have more than two days work
> on this documentation. It might even take you a week to get it all
> nicely done, but the better-looking this documentation is, the more
> likely the customer will accept it when you tell him it will take a
> long time to develop this project.
> About the estimated time... Try to estimate how much time your
> project will take and double (!) this time when you first mention it
> to the customer. Then go down by 25% in the final estimation, so you
> have some time available in case you encounter some unexpected
> delays. (For example, your system might crash, someone might get
> sick, whatever...) By including this additional delay time you don't
> have to tell the client that things are going to be delayed because
> <fill in excuse>.
> Keep in mind that you will charge the customer for all the hours that
> it did take you to finish. Say you planned 100 hours but told the
> client it would take you up to 150 days. For whatever reason, you
> manage to do it in 90 days... Your client will then be happy if you
> tell him you'll only charge him for 90 days or he has an additional
> 60 free days if he pays you the full amount for some additional
> enhancements.
> Many clients will then be quite happy to ask for more enhancements or
> ask for more features. It gets them "addicted" to you, because if you
> manage to finish things within the agreed time, they get some
> additional "free" time for the next projects, which has some positive
> effects on their budgets.
> Don't charge them for 150 days and do 60 days of nothing if it only
> took you 90 days! They will go somewhere else if they discover this!
>
> Now, prices will vary from $25 per hour for a simple developer doing
> simple things to $250 per hour for a well-experienced developer who
> can produce at high speeds. But asking $250 per hour will often let
> you end up with clients laughing at you in the face while they start
> calling for a more serious developer...
> Yet at times you can get away with this if the customer is familiar
> with you, when he knows you're real good and when you basically just
> don't have time for him because you're working for someone else at
> that moment. Then this amount could be used to compensate for
> delaying the other project, ot just allows you to hire someone else
> to help you with it all.
>
> Also, the amount you can ask also depends on the average wages of the
> people around you. I've done some freelance work as a student and
> earned $100 per hour with it. Had to pay taxes and some other
> expenses so in the end I ended up with $5000 for about 100 hours of
> freelance work. Used that money to buy some new clothes and a newer
> version of Delphi. (Delphi 2005 to be precise.) And the rest is in a
> savings account to support my studies.
> I got that job because I was helping out another freelance developer.
> He was busy on some project but the company really needed something
> to be done, and done fast. He charged them the double amount and then
> hired me. I did the work, he then checked it first and then gave it
> to the customer.And the customer was real happy.
> Oh, the customer was aware that he was "outcourcing" it. They just
> relied on him knowing a very experienced person who could do it. :)
>
> With kind regards,
> X Katja Bergman.
>
> --- In [email protected], "Chris @ IT" <[EMAIL PROTECTED]> wrote:
> > Hi All,
> >
> > This might be a bit out of topic but i think its a crutial for the
> survuval
> > of us all (programmers)
> >
> > How do you cost a programming project? Is it per hour? i take it a
> > professional programmer can cost his work at about $25 an hour or
> close then
> > use a utility like coderush to calculate the number of total
> programming
> > hours; Is it by system features and challenges? Programming isnt
> really a
> > scalar measurable thing so ive always had this problem when a
> client comes
> > to me and asks "how much will it cost?", especially when you cannot
> factor
> > in things like popularity, marketing etc; Just a client who wants
> something
> > specific.
> >
> > ANY help would be GREATLY appreciated...
> >
> > Thanks,
> >
> > Chris.
>
>
>
>
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