Is this appropriate?

[Peter h]

I was just curious if I could get some ideas of what someone might charge for an excel project. I know each project is different, but how do people come up with quotes? Could I get estimates for simple projects (Schedules, payroll, non vba etc...) to more complicated projects (extensive vba work)? I'm just curious, because I've thought about doing some projects for some people, and really have no idea what a starting point would be. Thanks for any info you guys might be able to provide.

Also, if this isn't an appropriate question for this forum, I apologize.

 

[UniMord]

I mean this kindly: The only part of your question that might possibly be considered inappropriate, is the meaningless subject line of "Is this appropriate?"! See A4 of Von Pookie's Guidelines: https://www.mrexcel.com/forum/board-announcements/127080-guidelines-forum-use.html. It helps people help you.

Regarding pricing, I've only done it a few times, so, take my advice with a packet of salt. You probably don't want to offer a hard number: "It'll be $300", because, these projects have a way of morphing, they come up with new problems, desired features, and extra meetings and phone time. If you're just starting, give them an hourly rate (include meetings and phone conversations!), and, only guess the time once everyone has agreed to the scope of the project.

The estimate that you write up will spell out in detail, what you've agreed to produce, and make it clear that your estimates are based on what was agreed. This way, if they decide they want more features or something else, you will be free to amend the estimate (and you will, in writing).

Here's a quick & dirty formula: I suggest you first decide what your time is worth, and then, multiply it by how good you are at developing. Meaning, let's say you'd like to make $100/hour, but your VBA inexperience means your development time is twice as long as the average developer, then your charge would be Hourly X AverageTime X 0.5 = $50/hour (you'll charge more when you get better at it). If you're so experienced that you can accomplish it in half the time of the same theoretical average developer, then, Hourly X AverageTime * 2. You get the picture. It doesn't take everything into account, but, it's a starting point for you to tweak as you please.

Only if you're blazingly fast, and you don't want them to know that this huge project will only take you 45 minutes, should you consider giving them a hard number estimate.

 

[Peter h]

I mean this kindly: The only part of your question that might possibly be considered inappropriate, is the meaningless subject line of "Is this appropriate?"! See A4 of Von Pookie's Guidelines: https://www.mrexcel.com/forum/board-announcements/127080-guidelines-forum-use.html. It helps people help you.

Regarding pricing, I've only done it a few times, so, take my advice with a packet of salt. You probably don't want to offer a hard number: "It'll be $300", because, these projects have a way of morphing, they come up with new problems, desired features, and extra meetings and phone time. If you're just starting, give them an hourly rate (include meetings and phone conversations!), and, only guess the time once everyone has agreed to the scope of the project.

The estimate that you write up will spell out in detail, what you've agreed to produce, and make it clear that your estimates are based on what was agreed. This way, if they decide they want more features or something else, you will be free to amend the estimate (and you will, in writing).

Here's a quick & dirty formula: I suggest you first decide what your time is worth, and then, multiply it by how good you are at developing. Meaning, let's say you'd like to make $100/hour, but your VBA inexperience means your development time is twice as long as the average developer, then your charge would be Hourly X AverageTime X 0.5 = $50/hour (you'll charge more when you get better at it). If you're so experienced that you can accomplish it in half the time of the same theoretical average developer, then, Hourly X AverageTime * 2. You get the picture. It doesn't take everything into account, but, it's a starting point for you to tweak as you please.

Only if you're blazingly fast, and you don't want them to know that this huge project will only take you 45 minutes, should you consider giving them a hard number estimate.

Thank you for the reply. The only reason I wasn't sure if it was appropriate to ask about pricing and what people charge is because I saw that you can hire MrExcel and the team to do projects, and I didn't want to appear like I was advertising or anything.

Thanks also for the tip and suggestion. I didn't even think about it that way. I will definitely keep it in mind. My only question is, is how do I know if what I think my time is worth is in line what other people are charging for a similar product? I've never hired anyone to do anything like this before, so I don't even know where a starting point is. I could think my time is worth $100/hr, and because of my experience charge $50/hr, but if that's not in line with a going rate for this type of work, the potential customer could be "Well John Smith will do it for $25/hr, and I know that guys is a professional..." How do I know if what I think my time is worth falls in line with what this type of work typically will cost a customer? In your example, is that $100/hr an accurate number, or just something you used as an example?

 

[UniMord]

The $100/hr was just an example. If what you want is more than what people are willing to pay for it, you probably won't want to do it anyway (unless you're really doing it for fun!), so, I think, the formula I gave starts you off at what you're willing to accept, and if the market doesn't bear it, so be it. If you're seriously looking to get into this line of work, and you don't mind starting off on the low end, you might consider working for someone else, at first. This way, you get a sense of the market, and learn how things are done in a professional environment. Most of the worthwhile programming knowledge that I have, came from being part of a development team (not Excel), not from school.

Also, you can't worry too much about what others are charging - there is a huge range. If somebody really wants to go cheap, there are websites where one can hire competent developers from third-world countries, for a pittance. Just present yourself as being competent and responsive, there will always be people who are willing to pay somewhat more for that peace of mind. Remember, you're creating custom-software here. Look at it this way: If someone wants to buy ready-made furniture, they can go to Ikea, if they want custom-made, the price is in another league entirely. I wish I could give you more specific numbers, but, it's really going to be up to you. Jump in, pick a number and good luck!

 

[Peter h]

The $100/hr was just an example. If what you want is more than what people are willing to pay for it, you probably won't want to do it anyway (unless you're really doing it for fun!), so, I think, the formula I gave starts you off at what you're willing to accept, and if the market doesn't bear it, so be it. If you're seriously looking to get into this line of work, and you don't mind starting off on the low end, you might consider working for someone else, at first. This way, you get a sense of the market, and learn how things are done in a professional environment. Most of the worthwhile programming knowledge that I have, came from being part of a development team (not Excel), not from school.

Also, you can't worry too much about what others are charging - there is a huge range. If somebody really wants to go cheap, there are websites where one can hire competent developers from third-world countries, for a pittance. Just present yourself as being competent and responsive, there will always be people who are willing to pay somewhat more for that peace of mind. Remember, you're creating custom-software here. Look at it this way: If someone wants to buy ready-made furniture, they can go to Ikea, if they want custom-made, the price is in another league entirely. I wish I could give you more specific numbers, but, it's really going to be up to you. Jump in, pick a number and good luck!

Perfect. Thank you. Unfortunately I can't really switch careers, so was just thinking of taking on a few projects here or there as kind of a hobby on the side. But I've been a bit timid going about it because I'm not familiar with the business aspect of it. Maybe the best thing to do, in any case really, would be to just start low and if I end up taking on too many projects adjust price up until I am taking on a more comfortable workload. Thanks again for the advise.