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Ask HN: How much?

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Re: Ask HN: How much?

#41
post #14

Earlier quoted context omitted.

100000$ for two months work seems like a good price.

I should probably mention that even though I spent 20h/day working on it, I spent/spend virtually every waking hour either reading/writing/thinking about writing software/business. I don't drink, I don't do drugs, I don't party. I live with my fiancee, and work pretty much every waking hour on something or other. I don't have a blog because it would consume too much time, and I don't interact with other developers be…

I don't interact with other developers because I worry that it will pull me toward the middle of the bell curve.

Didn't you say you used RoR? You're okay with using other folks high-level code, but you think interacting with them will pull you towards the middle of the bell curve. Interesting.

Re: Ask HN: How much?

#43
post #35

I've been trying to work this out for some months now, so apologies for piggy-backing onto this question: How do you actually achieve market prices? I'm aware that there are massive differences in how much you can charge based on location, but I still feel I'm hitting more resistance to my asking prices than I should be. As far as I can tell, it's not a quality issue. I've had repeat business from almost all my past…

Short answer: by turning down projects that are below your threshold. Intermediate tactics: * No matter how your SOW/MSA is structured, don't quote prices in terms of $/hour. * When you get rate pushback, follow up with a bid for a smaller or more constrained project. Slip scope. Never slip your rate. You'll never get it back. * Include a support retainer or annual/quarterly maintenance price, instead of giving that…

Thanks for the advice, Thomas!

Short answer: by turning down projects that are below your threshold

I'm slowly getting to the stage where I can afford this, but I've only built up about 6 months of runway, and it seems nobody starts projects in winter, which meant I came this >No matter how your SOW/MSA is structured, don't quote prices in terms of $/hour.

Easier said than done. I keep doing this dance where I'm avoiding giving an hourly figure, but end up going nowhere. Do you have a more specific suggestion for how to go about doing this? Also, what does 'MSA' stand for in this context? Too many meanings for google to be useful.

When you get rate pushback, follow up with a bid for a smaller or more constrained project. Slip scope.

Thanks, that's useful. Thinking back, that's happened by accident a few times, but I'll consciously encourage this in future. Some customers seem to fear this though: it seems they're afraid I'll build something only I can maintain and then charge them crazy money later. Maybe this happens. I don't know.

Never slip your rate. You'll never get it back.

Yep. I expected that, had to do it once or twice anyway. No fun at all.

Include a support retainer or annual/quarterly maintenance price, instead of giving that away for free.

So far, I've just billed individually for any but the most trivial maintenance. (e.g. 15-minute fixes to bugs that were blatantly my fault) How do I avoid scope creep on flat fees without it seeming like a raw deal to the customer?

Re: Ask HN: How much?

#44

Over the past few years, I've worked on quite a few PHP/MySQL/jQuery/Oracle webapps for clients. I've never worked on a plain HTML site or a Flash site, so I can't provide any stats there. Here are some of my stats - most projects I have worked on cost around 10-20k, average around 75-100 an hour, and take approximately 3 months of part time effort. I've done maybe 15 to 20 projects of this length/cost. I like projec…

If you don't mind me asking, where/how do you find projects to bid on?

Re: Ask HN: How much?

#45
post #35

Earlier quoted context omitted.

Short answer: by turning down projects that are below your threshold. Intermediate tactics: * No matter how your SOW/MSA is structured, don't quote prices in terms of $/hour. * When you get rate pushback, follow up with a bid for a smaller or more constrained project. Slip scope. Never slip your rate. You'll never get it back. * Include a support retainer or annual/quarterly maintenance price, instead of giving that…

Thanks for the advice, Thomas! Short answer: by turning down projects that are below your threshold I'm slowly getting to the stage where I can afford this, but I've only built up about 6 months of runway, and it seems nobody starts projects in winter, which meant I came this > No matter how your SOW/MSA is structured, don't quote prices in terms of $/hour. Easier said than done. I keep doing this dance where I'm avo…

An SOW is a statement of work. An MSA is a master agreement. Together, they're your contract.

If your BATNA is "lose house, live in box", the bill rate discussion is academic. Steadily raise your rate with new clients. Many consultants will advise you to build a steady pipeline and then raise your rates until you're turning away enough work to be 50+(Nx10)% utilized.

You can quote prices in fixed project dollar amounts (or by the milestone), and then cap your hours in an SOW. If you're working with procurements departments, it doesn't matter, since they're doing the math automatically. But don't offer up a $/hour amount.

I have less development consulting experience than many of the other commenters here do, but what I'd probaby do with regards to bugfix support is:

* Have a formal acceptance process, at the end of which the customer is responsible for signing off on the deliverable. Most large projects I've worked on are QA'd by the customer as well as the vendor.

* Have an escalation ladder for bugs, from cosmetic to data-loss, and have SLA time frames for free fixes on anything other than "cosmetic".

* Offer an up-front retainer contract for rapid (=better than SLA) bugfixes, changes, or feature requests, pointing out that if the customer does not opt for the retainer, feature additions and subsequent revisions will be full-on new projects subject to whatever your current rate and scheduling terms are.

Something I've learned in the past 4 years: scheduling risk is something many customers will pay to mitigate.

Re: Ask HN: How much?

#47
This has often been a hesitation of mine when being asked to do freelance projects. Before I took a web programming job, I had no formal training or experience so I always felt like I couldn't ask for high hourly rates because I wasn't confident enough in my work. After landing a job and doing it for a living, I still felt like I couldn't charge much because I would compare it to my salary which was a FAR cry from anything close to $50+ an hour. Because of the inhibitions, I've always just stuck with friends, friends of friends and family members when doing projects.

Now that I'm unemployed, I really think I need to reevaluate what my work is worth and start asking for a decent rate when projects come my way. The comments in this thread are definitely telling me I'm selling myself short - both in freelance projects and in what I fought through to earn what I earned at my last job.

Enjoying this thread. :)

Re: Ask HN: How much?

#49

Just for the sake of giving us more information, would you be willing to compare your RoR app with a website I made a while ago. I got paid $500 to make http://www.solafcars.com (works in multiple languages, includes an admin panel, everything on the site is editable). I would assume your RoR app was much bigger, but let us know how it compares. I know I got underpaid though.

A tip for your future: Price based on value, don't price based on cost.

You are delivering a tool which sells new automobiles. A single sale is worth thousands of dollars to the dealership. If they are achieving ROI on the first sale they make as a result of your website, and you're expecting that to eventually be in the few sales a day range, you are DRASTICALLY underpricing relative to the value they perceive the website as delivering.

Re: Ask HN: How much?

#50

Just for the sake of giving us more information, would you be willing to compare your RoR app with a website I made a while ago. I got paid $500 to make http://www.solafcars.com (works in multiple languages, includes an admin panel, everything on the site is editable). I would assume your RoR app was much bigger, but let us know how it compares. I know I got underpaid though.

You made a triple-language supported database application with immaculate crisp graphic design and well thought-out layout for $500 dollars??? Your solution btw is about as good as it gets for a small-biz website.

I second the opinion that your pricing is off by one or two orders of magnitude.

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