Dennis was asking what pricing models people adopt
Do You agree to ship solutions to one price no matter of the number of users or is the price related to a price / copy in use?
Do You offer a price all in for a solution or is it related to a hourly rate?
If related to hourly rate, does it exist any maximum top price or is it a running price?
For smallish stuff (say under 10k GBP (20k USD)) I tend to go for a fixed price, which I modify based on number of users (ie potential ongoing support) . That would be paid part on proof of concept (POC), part on start of user acceptance testing (UAT) and the rest on live release. I haven’t tried to go for a separate support deal, but I probably will start.
For bigger or less clear stuff I tend to go for a day rate, I have also done a few support only deals recently, based on 3 or 5 days per month or whatever, on a retainer basis. These deals seem pretty hard to get though. Shame, as it seems to make sense for everyone.
I tend to base costs on a mix of the day rate I need to earn to feed the family, what the client is likely to pay, how critical the product is, likely support burden, and how busy I am. I wouldn’t normally go for a maximum cost number.
I tend to develop the high risk, complex and big win parts of a system first, which means I can hack out nice-to-haves if total cost or delivery date becomes an issue.
What about you?
If you are employed I bet you still go through the same process with your internal customers, so how do you play that?