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Adrian Twarog
Adrian Twarog

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Estimating Working and Pricing in Development

Estimates are an important part of doing development or design. There are estimates for fixing bugs, estimates of hours to deliver a project, and estimates of how many weeks that will take.

Youtube: Estimating Working and Pricing in Development

Hour Based Pricing Estimates

When doing estimates I like to:

  • Break things down into smaller parts, ie. home page, about, contact pages for a website
  • Break down large items like home page into sections, header, etc
  • Figure how out much API's take to do
  • Use these as the baseline to create a great total figure to pass to the client
  • If you get questions on what estimates are, you have real world examples of what it should cost

Value Based Pricing Estimates

Estimates can also be done with value based pricing. Estimating on this is a bit harder, because you have to undrestand what the value to the client is. This can be done by knowing how much money they will save or make via the website.

Some things I like to do for value based pricing:

  • Use evidence to show how you set your pricing
  • You're not defined by the time you put in, but the value you provide, thus;
  • Value based pricing allows for more time and effort into projects
  • It can sometimes be easier to figure out value based pricing in comparison to development pricing
  • There is more wiggle room with value based pricing if things need to be done or re-done

Development hour/based pricing needs to be precise, so if you make any mistakes, you have to eat the cost and time for that, which can be a very difficult thing to do.

Design is different when estimating because it depends on so many factors, such as what the client knows, what you know, the current inspiration and ideas out there. I might talk a bit more about this in the future but usually, they require a bit more time and more difficult to estimating because you have to figure most things out for your client especially when they are not sure what they are doing.

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