MB Software Solutions General Account wrote:
> Alan Bourke wrote:
>> On Tue, 19 Aug 2008 10:34:58 -0700 (PDT), "Michael Madigan"
>>
>>> What is the rule of thumb
>> How much the customer is willing to pay for.
> 
> 
> I asked a client recently on his budget, citing that in previous
> proposals, he'd always tell me he wanted the cadillac but only had a
> hyundai budget!  So I told him I'd like to know ahead of time so I don't
> waste time proposing things outside of his budget.  Folks sometimes seem
> to think that if they say how much their max is, the estimate will be
> that regardless if it takes less to do the work.  Any one else
> experience that kind of client?  This guy is pretty good, as he knows
> I'm fair and don't cheat him, but nonetheless, I've seen some pretty
> nervous prospects in the past when this approach is taken.

I hate writing up quotes for it only to not be accepted due to estimated 
price. So I sit for an hour with them, at lunch, on me, and get a 
general feel for the needs, and give it some internal categorizations 
such as "easy", "lots of tedium", "unknown requirements", "client ease 
of conversation", etc. I also find out, verbally or nonverbally, what I 
think they are thinking they should pay for such a thing. Usually I get 
them to spill the beans by asking leading questions like "have you 
looked at off-the-shelf software such as x or y that may do this for 
you?" or "have you researched or have experience with the pros and 
possible cons of contracting for custom software?"

Then at the end of lunch, given what I've found out by talking with 
them, I'll know immediately if I want to spend time on the quote. If I 
don't want to spend more time, I'll give them a general estimate that 
covers my butt (like 6x what my gut tells me it'll take) and asks for a 
significant down payment, and even though I don't like treating people 
this way I'll kind of give the cold shoulder. For whatever the reasons, 
I either don't want to work with them or I think I'll be wasting time 
making a quote. I've learned to trust my intuitions.

If I do think more time is likely to pan out with a good job, I'll spend 
like 2 full days making a detailed quote, explaining the processes 
involved and who I'll interface with, estimates of hours needed and this 
is only an estimate, etc. etc. I'll quote closer to reality and do 
everything I can to get the job, while still demanding a significant 
down payment before work commences of course. I'll have my wife 
proofread and play the customer, and I'll answer her questions and when 
both of us are satisfied, I'll ask for another meeting to deliver the quote.

Back to your question: sure, large projects cost a lot of money. But, 
the client doesn't need to come up with it all at once, because large 
projects also take a long time for a single person to deliver. It's like 
taking on a mortgage payment or two while the software is being 
developed, but with huge return on investment over the medium to long 
term. They already suspect the return on investment, or they wouldn't be 
wanting the software in the first place.

Right?

Paul



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