[Sigia-l] Pricing the Design Process (was "Testing your own sites")

[Paola Kathuria]

Arthur Fink wrote:
> Billing may be based on time, estimate, or perceived value.
> 
> * I expect your project will take me 300 hours, but it may be more. 
> I'll quote you a fixed price based on 400 hours at my highest rate (but
> I'll not give you that computation -- just the number).

Our estimates are usually ranges and we now give clients a
choice of pro rata or fixed price.

For example,

pro rata: from what I know of your requirements, it'll take
  between x-y hours but it could end up less than x or more
  than y. If you want, I can mail you my hours worked at the
  end of each day. I'll let you know as soon as it becomes
  clear that the project can't be finished without exceeding y
  so that we can decide what to do.

fixed: y + a percentage contingency (% stated openly) to
  cover unforeseen eventualities.

Now that I've started giving them a choice, my regular clients
always go for a fixed quote even though, after having tracked
my time, the original requirements were accurate, there
weren't extra design iterations and I was within my original
estimate. (But sometimes the contingency doesn't cover the
extra work needed - so I have to elicit better requirements
next time).

And, as has been said before, it's intensely liberating
to be able to do what you know needs to be done, even
going that extra mile, without having to get the client to
approve extra work beforehand. Unforeseen things always come
up once a project starts and it's so very good to just deal
with things as they arise, knowing you'll end up with a
better solution and not having to be slowed down or quibble
about money.

(I hope that people know not to discuss actual prices:

  http://www.limov.com/journal/?e=1061
  "The perils or mailing lists")


Paola