Subj : Re: How much should I charge for fixed-price software contract? To : comp.programming,comp.lang.java.programmer,comp.lang.lisp From : Pascal Bourguignon Date : Mon Jul 11 2005 09:33 pm "jonathon" writes: > Pascal Bourguignon wrote: >> For example, if their business practice on investing is to expect a >> TTROI of 0.25 year, and your software will allow them to earn 1 more >> dollar/year/customer and they have 100,000 customers, that is, your >> software will earn them 100,000 more dollar/year, then you can quote >> it for P = 0.25*100,000 = $25,000. > > So what would be the rationale for charging double for the same product > simply because they are willing to wait six months rather than three > for ROI? Who told anything about reason? It's psychology. You approach the "decider" with this argument: "Hey, with my product, in six months you'll be earning twice the dollars you earn now.". While you don't have a competitor bidding a TTROI of three months, you don't need to bid less. If you good at it (you approach the decider in the right context with the right adornments), you can even bid a TTROI of one year. -- __Pascal Bourguignon__ http://www.informatimago.com/ Our enemies are innovative and resourceful, and so are we. They never stop thinking about new ways to harm our country and our people, and neither do we. -- Georges W. Bush .