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I have heard people advocate this before, and it makes sense until you ask yourself why should the business pay you $6000 for the project when they can hire (assuming similar competency) another developer to do the same thing for $1000?

You aren't just competing with their existing solution, you are competing with other developers that they are likely collecting quotes from.

IMO your ability to charge them $6000 was based more on them not knowing exactly how much work went into the project and not the value it saved the company.



why should the business pay you $6000 for the project when they can hire (assuming similar competency) another developer to do the same thing for $1000?

This was also addressed in the ebook, and charging significantly more than your competitors is a strategy in itself. If they go with a competitor based on price, this is not a client I want (low end market ironically is more demanding than the high end). I get fewer clients, but still make more money than the cheaper guy (e.g. sell 1000 Bentleys or 20,000 Fords).


Also included in our contract was a money back guarantee and access to previous clients who agreed to be contacted for testimonials (we offered a discount if they agreed to let future customers contact them). We also met every client in person and bought them coffee, and submitted our proposal as a printed and bound brochure. These are all things that set us apart from offshore and other low cost providers.




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