13 Replies - 2924 Views - Last Post: 12 August 2010 - 11:49 AM

#1 bioshock  Icon User is offline

  • D.I.C Head

Reputation: 3
  • View blog
  • Posts: 75
  • Joined: 08-June 09

How much do I charge?

Posted 04 August 2010 - 04:07 PM

Hello everybody,

Well, here's the problem: How do I figure out how much I must to charge to the clients?
I readed recently about charging by hours, ok, that seems cool, but how do I know the precise price that I must charge to the clients?

Thanks for the answers!
Is This A Good Question/Topic? 0
  • +

Replies To: How much do I charge?

#2 macosxnerd101  Icon User is offline

  • Self-Trained Economist
  • member icon




Reputation: 10596
  • View blog
  • Posts: 39,257
  • Joined: 27-December 08

Re: How much do I charge?

Posted 04 August 2010 - 04:33 PM

Moved to Freelancing.

It really depends on the type of work you are doing and your skill level. Can you give us more information pertaining to this so we can better answer your question?
Was This Post Helpful? 1
  • +
  • -

#3 bioshock  Icon User is offline

  • D.I.C Head

Reputation: 3
  • View blog
  • Posts: 75
  • Joined: 08-June 09

Re: How much do I charge?

Posted 04 August 2010 - 05:19 PM

View Postmacosxnerd101, on 04 August 2010 - 03:33 PM, said:

Moved to Freelancing.

It really depends on the type of work you are doing and your skill level. Can you give us more information pertaining to this so we can better answer your question?


Hi, yes of course!
Well, the application that I'm developing should act in different schools, that's my big objective. Although, for now, I'm just developing for one school that spoked with me.
Initially, I will spend my full time working in the part of students, because that's my 1st objective. When this done, I'll try to "grow up" the level.

All of this stuff is being recorded (by the hours that I spend in each part of the application) into Project (Microsoft Office).

Thank you, and sorry for the bad session of the post.

PS: Feel free to ask me something.

This post has been edited by bioshock: 04 August 2010 - 05:20 PM

Was This Post Helpful? 0
  • +
  • -

#4 Momerath  Icon User is offline

  • D.I.C Lover
  • member icon

Reputation: 1012
  • View blog
  • Posts: 2,444
  • Joined: 04-October 09

Re: How much do I charge?

Posted 04 August 2010 - 08:43 PM

First thing you need is a contract specifically stating that you own all the code and that they are just getting the right to use it. Otherwise if your software becomes popular, you can bet they will come looking for the cash.

Which means: Hire a lawyer. Get a simple contract written and get it signed.

As for what you should charge, that's up to you. Without knowing your country, the standard of living you expect off this project, the financial resources of the client, etc. anything we say would be meaningless. Just don't sell yourself cheap, or future clients will expect you to be cheap too :)
Was This Post Helpful? 2
  • +
  • -

#5 bioshock  Icon User is offline

  • D.I.C Head

Reputation: 3
  • View blog
  • Posts: 75
  • Joined: 08-June 09

Re: How much do I charge?

Posted 05 August 2010 - 07:13 AM

Hi,

Yes, but for now there's no contract at all, because I'm am still developing the application, and it will take maybe 1 or 2 months, I hope.
The contract will be made when I finally ended the application. For sure they just have it for use and not for sale.

Well, as I know, there's just one company that made a program such like I pretend, but that program is made to normal schools and not for the professional schools. My application is essentialy to the professional schools.
I know that these professional schools just use papers and excell, so I guess there's a good oportunity for me. Although I don't want to think very "high".

I will not sell myself cheap, but I will not get any absurd value. If the application runs nicely in this school that I want to implement, then I guess I will start thinking about to "explore" more schools, but as I am a freelancer, one step at a time.

Thank you!
Was This Post Helpful? 0
  • +
  • -

#6 Robin19  Icon User is offline

  • D.I.C Addict
  • member icon

Reputation: 272
  • View blog
  • Posts: 552
  • Joined: 07-July 10

Re: How much do I charge?

Posted 05 August 2010 - 01:26 PM

Get the contract before you develop the program. Otherwise they might be able to prove that you were writing for them, and that they own part of the rights to the program. Not only would they be able to sell it, you would need to give them a cut when you sell it.
Was This Post Helpful? 2
  • +
  • -

#7 macosxnerd101  Icon User is offline

  • Self-Trained Economist
  • member icon




Reputation: 10596
  • View blog
  • Posts: 39,257
  • Joined: 27-December 08

Re: How much do I charge?

Posted 05 August 2010 - 01:28 PM

Plus, if you don't contract with them, then they have more room at the end to say "sorry, we don't want it."
Was This Post Helpful? 1
  • +
  • -

#8 bioshock  Icon User is offline

  • D.I.C Head

Reputation: 3
  • View blog
  • Posts: 75
  • Joined: 08-June 09

Re: How much do I charge?

Posted 05 August 2010 - 02:32 PM

Hi,

Guys they're will not do that to me. I past my last 3 years in that school, working with them, I know how they like me. In the final, to complete the course, we all have to do an program, well, I did and they liked as I expected, and they proposed me to continue the program and give them a price to buy it.

This application if they do not want it, it's available to use in others schools.

Thank you for care guys!
Was This Post Helpful? 0
  • +
  • -

#9 Momerath  Icon User is offline

  • D.I.C Lover
  • member icon

Reputation: 1012
  • View blog
  • Posts: 2,444
  • Joined: 04-October 09

Re: How much do I charge?

Posted 05 August 2010 - 03:44 PM

View Postbioshock, on 05 August 2010 - 12:32 PM, said:

Guys they're will not do that to me.

I hope you are right, but let me tell you a short story about not having a contract.

A while back some (so called) friends, six of us in total, started a small company. Two of them fronted the money for the company and became the president and vice president. We developed a product and started selling this to various companies. Our goal was either to take over the market in our area (not likely) or have some big company buy us out. The agreement we has was that the two fronting the money would get 1/2 of whatever we made, and the rest of us would split it. A couple years later, here comes big company X that wants to develop a product just like ours, but figures it would be cheaper to buy us out than spend all the money playing 'catch-up' to us. You can probably guess what happened next.

Since the company was in the name of the two who fronted the money and we didn't have a written agreement about the split, the rest of us ended up with $0 while they became multi-millionaires. Remember, these were my friends. If friends are willing to screw you for money, what do you think strangers will do?

I learned a costly lesson and it was: No written contract, no work.

This post has been edited by Momerath: 05 August 2010 - 03:46 PM

Was This Post Helpful? 1
  • +
  • -

#10 bioshock  Icon User is offline

  • D.I.C Head

Reputation: 3
  • View blog
  • Posts: 75
  • Joined: 08-June 09

Re: How much do I charge?

Posted 06 August 2010 - 01:51 PM

Hi Momerath,

I appreciate, seriously, your consern, and it makes me think in different view, sure that it does.


To prove it, I want to ask you something: there's a possibility to get an contract to make just a specified work, just like (ex: "Creating the form about")
When this all done, I can get other contract to (for example: "Create the form clients")

Of course I will not make one contract for each form..but I guess you understand what I mean.

Thank you!

This post has been edited by bioshock: 06 August 2010 - 01:52 PM

Was This Post Helpful? 0
  • +
  • -

#11 Imdsm  Icon User is offline

  • D.I.C Regular
  • member icon

Reputation: 103
  • View blog
  • Posts: 362
  • Joined: 21-March 09

Re: How much do I charge?

Posted 07 August 2010 - 09:54 AM

As a few people have said, you need a contract, but don't let this scare you off. I could write out on paper that you agreed to make me coffee every day for a week, in return for 10, and if we both signed it, that would be a contract. All you simply need that for is to make sure they keep their word, it is in effect a legal promise - in the same way as a bank note is - they are simply contracts, if you read them they say 'I promise to pay the bearer x' etc.

So what you need to do is first of all is work out the parameters of the contract - plainly speaking - you need to agree on what you'll do and what they will pay. Make a list of what they want, and then put a figure with it, one you're both happy with. This can either be price per hour, or a final price. If it's a fixed project, a final price is usually best.

You then need to decide what you'll do if they ask for more, for example you can either amend the price or renegotiate the contract.

You then need to put this all into writing, doesn't need to have lots of big words, just needs to make sense. Put the date on it, sign it, and get them to sign it, (remember to put names on it of the person who signs it too!)

This, in effect, covers your ass.

But, returning to the actual question you asked, how much should you charge? Well it depends, national minimum wage per hour here in the UK is about 6 or $10 USD. So you could charge per hour with that, or if you're going for one price, try and work out how long it will take you, and then add that up in price per hour. When I worked as a freelance web developer/designer, I charged 30/hour to new customers, and 25/hour to existing customers, but this really depends on your level of experience and the demand for your product/services.

What language are you coding in? VB.Net? C#? ASP.NET? PHP? This will also affect how much you should charge, for the more complex or obscure you're required to code in, the more effort it takes, and therefore the more it's worth.

You should also agree on WHEN you get paid, how often, and what happens if they back out.

You said it'll take 1 to 2 months, is this working 8 hours a day 5 days a week? Or is this working after college/at weekend? How long will it take in man-hours? How complex is the application?

You may also wish to outline in said contract, what happens if something breaks after you're paid, they will - being 'friends' - try and get you to fix it for free. You can be the good guy and offer 3 months warranty etc, or you can be smart and charge.

Good luck!
Was This Post Helpful? 2
  • +
  • -

#12 bioshock  Icon User is offline

  • D.I.C Head

Reputation: 3
  • View blog
  • Posts: 75
  • Joined: 08-June 09

Re: How much do I charge?

Posted 08 August 2010 - 03:37 PM

View PostImdsm, on 07 August 2010 - 08:54 AM, said:

As a few people have said, you need a contract, but don't let this scare you off. I could write out on paper that you agreed to make me coffee every day for a week, in return for £10, and if we both signed it, that would be a contract. All you simply need that for is to make sure they keep their word, it is in effect a legal promise - in the same way as a bank note is - they are simply contracts, if you read them they say 'I promise to pay the bearer £x' etc.


Hi, yes!
I don't want anything big..I'd just want a contract where me and the school have some agreements and obligations.

View PostImdsm, on 07 August 2010 - 08:54 AM, said:

So what you need to do is first of all is work out the parameters of the contract - plainly speaking - you need to agree on what you'll do and what they will pay. Make a list of what they want, and then put a figure with it, one you're both happy with. This can either be price per hour, or a final price. If it's a fixed project, a final price is usually best.


For sure. I had already thought about that. The school make the parameters and if I agree, then simply we assign the contract.
About the price, but how I can figure out what the price? Because, with the hours, I can see how many hours I spent creating the application, and I can multiple for hours..

View PostImdsm, on 07 August 2010 - 08:54 AM, said:

You then need to decide what you'll do if they ask for more, for example you can either amend the price or renegotiate the contract.


Hmm, and if I complete the contract and begin another one?

View PostImdsm, on 07 August 2010 - 08:54 AM, said:

But, returning to the actual question you asked, how much should you charge? Well it depends, national minimum wage per hour here in the UK is about £6 or $10 USD. So you could charge per hour with that, or if you're going for one price, try and work out how long it will take you, and then add that up in price per hour. When I worked as a freelance web developer/designer, I charged £30/hour to new customers, and £25/hour to existing customers, but this really depends on your level of experience and the demand for your product/services.


Well, as I am freelancer, here in Europe, we talk about euros, I know that £6 = 4€ and that is the price that I want to charge..however, If the school doesn't agree, I can, in the first contract do it for 3€. What do you think about that?
My experience (professional) is 0. However, I know very well the language that I work in.

View PostImdsm, on 07 August 2010 - 08:54 AM, said:

What language are you coding in? VB.Net? C#? ASP.NET? PHP? This will also affect how much you should charge, for the more complex or obscure you're required to code in, the more effort it takes, and therefore the more it's worth.


I am coding in VB.Net, and using the database MySQL because, in the future, if this works very nicely, I can easily put this into a webpage too, that's why I choosed MySQL

View PostImdsm, on 07 August 2010 - 08:54 AM, said:

You should also agree on WHEN you get paid, how often, and what happens if they back out.
You said it'll take 1 to 2 months, is this working 8 hours a day 5 days a week? Or is this working after college/at weekend? How long will it take in man-hours? How complex is the application?


When I said it'll take about 1 month or 2, was an part of the application, not all. Because, I expect that will take much more, but I have time.
The application is a little bit complex, as you know, school is just too damn complex.
I hope working after the work...

Thanks for all!!

This post has been edited by bioshock: 08 August 2010 - 03:48 PM

Was This Post Helpful? 0
  • +
  • -

#13 Imdsm  Icon User is offline

  • D.I.C Regular
  • member icon

Reputation: 103
  • View blog
  • Posts: 362
  • Joined: 21-March 09

Re: How much do I charge?

Posted 09 August 2010 - 09:54 AM

View Postbioshock, on 08 August 2010 - 02:37 PM, said:

Hi, yes!
I don't want anything big..I'd just want a contract where me and the school have some agreements and obligations.

For sure. I had already thought about that. The school make the parameters and if I agree, then simply we assign the contract.
About the price, but how I can figure out what the price? Because, with the hours, I can see how many hours I spent creating the application, and I can multiple for hours..

Hmm, and if I complete the contract and begin another one?

Well, as I am freelancer, here in Europe, we talk about euros, I know that 6 = 4 and that is the price that I want to charge..however, If the school doesn't agree, I can, in the first contract do it for 3. What do you think about that?
My experience (professional) is 0. However, I know very well the language that I work in.

I am coding in VB.Net, and using the database MySQL because, in the future, if this works very nicely, I can easily put this into a webpage too, that's why I choosed MySQL

When I said it'll take about 1 month or 2, was an part of the application, not all. Because, I expect that will take much more, but I have time.
The application is a little bit complex, as you know, school is just too damn complex.
I hope working after the work...

Thanks for all!!


Well, the way I do it is we agree on a design brief, we have everything laid out and we know what needs doing and what to expect etc, then we come to an agreement on the price, and that settles it. If they want things doing afterwards, I then say that it isn't in the contract, so if you want it it will cost more, and then I make sure I get the payment before doing it. All the contract will allow you to do is hold your own against them if they say "well we aren't paying because we want this as well" etc.

You really do have to agree a price, if it's going to be an ongoing thing, then you should work in hours, and get paid monthly. If you work 160 hours a month on it, then ask them for 640 a month, but give them a reasonable estimate.

The only problems you will have collecting money are: 1) it's a school 2) they know you personally 3) you have little if any professional experience.

You really need to sit down with them and ask them the questions, before doing any work.

Good luck
Was This Post Helpful? 2
  • +
  • -

#14 bioshock  Icon User is offline

  • D.I.C Head

Reputation: 3
  • View blog
  • Posts: 75
  • Joined: 08-June 09

Re: How much do I charge?

Posted 12 August 2010 - 11:49 AM

Hi,

Yes, I really want to sit down with them and ask which things they really want to implement in the school. But I want to go by "steps", I don't want to make everything right now.

For now, I stopped programming my application untill I have the contract. I already sent them an email, if they agree, ok's fine! If they do not accept, I just do not continue with the application.

About the wage, already told you, about 4€ per hour +/-, seems nice to me.
Thank you for everything! :bigsmile:

This post has been edited by bioshock: 12 August 2010 - 11:49 AM

Was This Post Helpful? 0
  • +
  • -

Page 1 of 1