By Peter Bell

Functional Based Pricing

Posted At : January 30, 2007 9:32 AM | Posted By : Peter Bell
Related Categories: Specification, Pricing
One of the things I am trying to do right now is to come up with a better way to price projects based on the functionality required. The question is how to come up with the quickest way to provide the closest approximation to the real cost where clients have custom requirements but often don’t want to take the time to fully describe them.

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Know Your Niche

Posted At : January 28, 2007 7:47 PM | Posted By : Peter Bell
Related Categories: Pricing
I work with a lot of web developers, providing the back end programming while they handle the front end project management, graphic design, marketing creative and so on. Typically most of my clients sell sites all in for between $2,500 and $50,000 (most are between $5,000 and $35,000).

Every so often one comes to me asking if I’d be interested in helping them respond to an RFP from some large government agency or business that they’ve managed to get on the vendor list for. These days I usually decline . . .

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The Goldilocks Strategy

Posted At : January 25, 2007 8:09 AM | Posted By : Peter Bell
Related Categories: Pricing, Rants
For anyone who doesn’t know already, I thought I’d outline the primary vendor selection strategy utilized by most companies when selecting a website developer. It is called the Goldilocks Strategy and in over fifteen years of business, is probably the most prevalent selection strategy I’ve ever seen.

While your affability, clothing and proposal (often in that order) do go into selecting the right website developer, once the bad and the ugly (or at least the ugly) have been eliminated the buyer will then usually use a very simple algorithm for selecting the optimal vendor. It is called the Goldilocks Strategy and it works as follows . . .

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