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Ask HN: How much detail do you provide in quotes to clients?
When charging a fixed amount to a client for a project, how much detail do you provide? We've been quoting projects based on estimated hours for each part of the project and including those numbers in the proposal, but I'm wondering if that's best.
- dmboyd 15y agoIts either hours times rate (which sucks imho, because it creates a perverse incentive for laziness) or you go value billing and have a set of agile steps with dollars and time expectations. Its easier to relate to and easier to bill if you have specific steps, rather than trying to productize a service.
- tnorthcutt 15y agoDo you know of any good resources for getting started with value billing, especially for web design/development? We mainly build websites for small/medium sized businesses, and I anticipate needing to do a lot of education/selling on a possibly unfamiliar pricing system. I'm aware of this book aimed at consultants: http://www.amazon.com/Value-Based-Fees-Ultimate-Consultant-Pfeiffer/dp/0470275847 http://www.amazon.com/Value-Based-Fees-Ultimate-Consultant-P... but I'm not sure how well that will apply to my situation.
- steveattard 15y agoI think that clients vary in their preferences. I would usually have a very granular template (i.e. broken down into little chunks), and I would directly ask the prospect, "What level of detail would you prefer in this quote?" Then I would adjust the quote accordingly, because I think you will find that more detail is not always better for some clients that prefer to pay lump sums, but the opposite will also apply.
- tnorthcutt 15y agoDo you see any strong patterns in terms of different kinds of clients preferring certain levels of detail?
- steveattard 15y agoNo strong patterns, but some characteristics. Situations where you're more likely to get by with a block quote: Established trust, where you have high credibility with the prospect, when you have been referred to them from a trusted source, or where they are already a client of yours. Where you probably will require a more granular quote: If your proposal/quote will be passed on to other people in the company, needs to be approved by a board or higher management, and if the prospect is known to be tight with their money. Also quotes above a certain amount usually need to be granulated, for me this was anything over $5K.
- tnorthcutt 15y agoThanks, that's very helpful.