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Thread: Comparing my costing
Jan 13, 2006, 10:49 #1
Comparing my costing
I need to cost a complete web solution (php) from end to end. I've done all the bits of this job in one way or another before, from design to specifications to coding to testing to hosting, but the real challenge for me is going to be treading a fine line between a competitive price and an opportunity to make a good return.
Can anyone offer links or suggestions about quoting/proposing web systems?
Jan 14, 2006, 15:25 #2
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- Apr 2005
- Subic Bay / Toronto
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You're unlikely to get any solid pricing info around here, as it's against the rules.
That being said here's some basic accounting for you,
Figure out how much it will cost you to complete, in terms of time and or subcontractors.
Figure out how much you want to make this year. Call it $50k in this example. (my cost of living is higher due to where I live, so my top line is higher - yours may be lower)
Figure out how many hours this year you plan to spend billing. Not working - you need to have time to get new clients, bill the old ones, and perhaps take a vacation. Let's say an average of 20 hrs per week working, and 4 weeks off.
Divide 50k by (20*48 weeks) = $52/hr
Your cost on the job is your hourly rate * the number of hours you realistically expect the project to take, plus the cost of your subs.
** Rule 1: Always mark up the work your subs do! **
So lets say its 75 hours, plus a $2000 bill from a sub. You should be charging AT LEAST $52*75+2000 = $5900. A more reasonable quote would be $7500. Then you have both wiggle room if he asks for a discount, or if it takes longer than anticipated.
** Rule 2: it always takes longer than you think **
Hope that helped.
Jan 14, 2006, 17:46 #3
I suppose the thing I miss not working for a big company anymore, is someone there to say "way too high" or "way too low"!
I'm going to try and estimate the hours today, and see whether I come up with something realistic.