Re: Need help with quote

by "Kevin A. Jackson" <kevin(at)nvision.on.ca>

 Date:  Thu, 18 Jul 2002 09:37:24 -0400
 To:  hwg-business(at)hwg.org
 References:  pieceoshit
  todo: View Thread, Original
At 05:07 AM 7/18/02 -0700, MC Bennett wrote:
>I'm new to all this, but I've got to agree with you,
>Lisa. Seems there's nowhere that gives any kind of
>guidelines as to what should be charged for services.
>As a result, lots of new folks (myself included)
>really aren't sure what's reasonable. We're forced to
 >- snipped -<

The process is frustrating, but necessary. Our industry desperately needs 
people to be experienced and professional before they take money to build a 
website. A fundamental understanding of the business issues is critical. 
Like any service, one of the simplest ways to determine the price is to 
work out how much it costs you, build in a margin of error, another for 
profit. If you are a one-person operation this is fairly simple as you are 
really estimating how many hours it will take you, and how much you want to 
charge per hour.

As the team and the jobs get bigger, the cost and complexity goes up.

If you do not understand this process, and have a grasp of how much it 
costs to do certain things, you are not serving your clients or yourself 
very well, as you are going to run into either budget or time problems.

This kind of evolution helps clients judge the ability of a shop to deliver 
a job. If they get five quotes in a close range, and yours is way off, that 
tells them that you are either intentionally boosting/cutting your price as 
a market strategy, or you have never done a project like theirs and don't 
know how to price it.

Bottom line: if you work out your costs, add a profit margin, and an error 
margin your price should be close to your competition, so don't worry about it.

Cheers

Kevin Jackson

--
Biz-Zone Internet Group Inc.
Web developers, publishers and consultants,
Non-profit Associations a specialty.
http://www.biz-zone.com/ - Mailto:kevin(at)biz-zone.com
Phone: (905)640-8441 - Fax: (905)640-0934

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