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> Flat Rate Pricing > This also applies to software development. If an e-commerce application you are building will bring in $500,000.00 in sales in the next y
by mettamage 5y ago
> Flat Rate Pricing
> This also applies to software development. If an e-commerce application you are building will bring in $500,000.00 in sales in the next year, then charging 10% to 20% of this amount is acceptable. The same goes with feature implementation. If your feature will save them $200,000.00 in the next year, price with that in mind vs the hourly rate.
And how do you know what amount of money they'll make or save? Do you estimate it yourself? Do they tell you?
- handrous 5y agoI was about to write that a guide to estimating savings or income from partial information would be really useful, then it occurred to me that, since businesses & management do that a lot, this is probably exhaustively covered in business & management literature. Maybe some case studies of how to do this specifically with the kinds of info a software consultant (or, indeed, a low-ranked development employee—all are advised to attach a dollar value to their work for later bragging/self-promotion purposes, after all) may readily access, then, would be enlightening.
- HeyLaughingBoy 5y agoIt seems to me that the person who researches how to do this for software development, then packages and publishes the information, is themselves producing a valuable (and therefore saleable) piece of content.
- 0xEFF 5y agoJust ask. A good client thinks of you as a trusted business partner and will want you to be fully informed. Maybe you can help them make or save even more.
- mooreds 5y agoHere's a great book about this topic: https://www.amazon.com/Value-Based-Fees-Charge-Youre-Worth/dp/0470275847 https://www.amazon.com/Value-Based-Fees-Charge-Youre-Worth/d...
- deleted 5y ago[deleted]