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Discussion on: Code price-tag

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cohnjesse profile image
Jesse Cohn • Edited on

Another way to go about this is to charge by the project. This is the model that most large agencies use and I have used for years. Here is the process I use -

  1. Work with the client to determine the scope of the project. Do they just need coding or does the project also need planning/ design? These don't nessisarily need to be done by you but you can certainly use your expertise in planning and if you do you should charge for it. How much functionality is needed? Do you have a clear set of requirements? If not this can add to the scope. Determine this stuff first before you price because it will affect how confident you feel in how many hours the project may take.

  2. Determine a fair market value for your time per hour. Everyone charges per hour in some way or another, with the method of charging a flat rate like I am telling you here you are adding up what the hourly rate would be and then adding some for overage. The rate you charge is a little bit of a subjective thing and if you don't feel comfortable charging a ton of money per hour that's ok since you are just starting out. But also charge enough that it is worth it, otherwise you might end up resenting the client. As a benchmark I am in the US and when I started by hourly rate was $20 an hour. Now 11 years later my hourly rate is $150 per hour.

  3. Multiply your hourly rate by how many hours you think the project will take you to complete. This time should include everything, research, planning, coding, everything. You don't want to be doing work for free. Unless you do, in which case this discussion is irrelevant.

  4. Add 25% for overages. You will always encounter things you didn't expect in a project, this allows you to give yourself a buffer.

Whatever number you come to is the flat price you charge the client. You can charge the price all at once or in phases if you think the project will take a long time. At the very least get 50% up front, this will let you know the client is serious.

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kostassar profile image
Kostas Sar Author

Sound strategy! Thank you for your answer!