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Thread: Application pricing

  1. #1
    Kerry Jannsen
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    Default Application pricing

    Hi,

    I've developed a customized delivery routing and scheduling application for a small CO2 gas company that I work for. I am planning on leaving the company soon and am having trouble determining a fair price for the application. The owner and I have an agreement in place for him to buy the application once I leave. I've never done this before and haven't a clue as where to begin. I will still be available for consultation and for troubleshooting any major problems but he will be able to handle most issues that may come up. The application is fairly flexible and allows for 1,2,4,6,8 and 12 week scheduling with the ability to assign each individual stop to multiple drivers if necessary. There are a large number of reports such as the route sheets which are given to drivers, recommended delivery frequecy, tracking, efficiency, customer lists, history, as well as monthly billing reports used for billing large chain and group accounts. The application is not used for accounting purposes. Can anyone give me idea of what something like this would sell for? I am just looking for educated guesses to give me some kind of starting point. Perhaps you could tell me about something similar you've developed and what you currently sell it for. Any help is appreciated.

    Thank you,
    Kerry

  2. #2
    VAR davej's Avatar
    Real Name
    Dave Jampole
    Join Date
    Apr 2000
    Location
    Haughton, LA ( just east of Shreveport, Louisiana)
    Posts
    2,524

    Default RE: Application pricing

    Kerry,

    I do development work using A5V5 and A4V6 (when I'm not teaching). A5 is my primary platform and I still support some legacy applications developed in A4. I've recently contracted to do some update work in A4V6, so maybe I can give you a sense of what you should charge for your work.

    First of all, what do other developers in your area chargh? The tool you do your work in makes no difference. If others in your area charge $75-$100 per hour, that should give you a target range. How much time do you have invested in the application? Does the agreement between you and you supervisor specify an amount?

    There are conflicting philosophies regarding what to charge. Ssome say charge what the traffic will bear, some say don't price yourself out of business, some say don't leave money on the table. I guess that my point is that stay reasonable based on what other developers in your area charge. Example: in my area of the country (northwest corner of Louisiana), the cost of living is relatively low so labor costs are relatively low. I charge $75 per hour for new clients and somewhat less for existing clients.

    If you'd like to talk about this in more detail, you can call me at 318.949.4342 any evening other than Tuesdays or Thursdays.

    Dave

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