Question about pricing

[ExcelAtEverything]

Sorry for the long post, but I was wondering if I could ask this community for help with something. This will be my first time actually charging someone a price to create a spreadsheet for them. Where I'm struggling is that I feel like I should be paid $3k for this sheet easy,. I'm just not sure how much spreadsheets cost. I know their are pro firms out there who do it, and I know their are websites where people offer their services for a very low price, but I don't know where I should and with my own price. I know the guy as an acquaintance, but his company is definitely not hurting for cash. I was also given a $400 deposit once I asked for it, and he mentioned that there are more spreadsheets he will want after this. If any of you are in the know about this and feel like helping me out, I would so appreciate your input here. I'm just not knowledgabe about pricing in this business. Sorry I can't upload it due to sesitive info, but I can try to explain it as best as possible. Here is some info about it.

The spreadsheet is a daily/monthly/yearly sales analysis tool which will compare this year vs last year, and will report on things like sales, sales dates, returns, discounts, aging inventory, avg basket, items per transaction, and more. I spent years in retail field leadership, so I promise you that the report will look very professional once complete. Also, that puts me in a unique position to completely understand how much this sheet is going to help them analyze & run their business each day.

This will be a spreadsheet that requires me to use some macros, and a lot of Power Query. I will basically be logging into their system to download Excel reports. I will then use those reports in Power Query to generate 5-10 very large data tables (more than 100k rows x 35 rows each table). The spreadsheet will receive additional info & be refreshed each day. It wil have a summary tab on the front which pulls daily info from those tables. Some process will be automated thru macros. I will also have a coupe of Pivot Tables on the summary tab.

It's also requiring me to learn a little about their system because of the customer'slack of knowledge of his own reports. For instance he wants me to report daily sales, but had no idea until I told him that his current reports don't include returns in those sales (which he thought they did). So he thought is was as easy as pulling the sales number from his report, but now it's requiring me to generate an extra report in his system to see returns, then import that info onto a table via Power Query like everythig else, and then subtract the two. There are MANY instances like this throughout this project.

It will take several weeks to complete . Some of that time spent on building and testing the sheet, and a lot of time analyzing the current reports and comparing against actual info in their system to see exactly what is happening in each column of their current reports. In doing so, I even discovered an error in their own current reporting which he was unaware of.

Again, any pricing help or insight would be appreciated.

 

[B-Man]

I cant help you decide. I have only done freebies for others.
Id hourly rate it, its the only way you will get paid what you think you deserve for the sheet. that rate would depend on if you need to google your formulas or you know most of it off the top of your head... the more experienced you are the more should strive for and it shouldn't cost them anymore as you can get it done quicker than someone with a lower hourly rate and to a better standard. and if it does exactly what they wanted they are happy then price shouldn't matter. but definately give them a figure not a quote but something so they know what there expecting rather than bill shock when they expect for $300 and your charging $3000
maybe a variable rate depending what your actually spending your time on... as for learning his system thats a tough one as you should charge.. how much though... if theres more sheets to come then you already know how it works so your more valuable but then whos to say you dont get anymore work...
a high hourly rate to do the work and then a lower hourly rate to test it and finish it.
I have had some issues with hiring IT and getting a quote then due to their mistakes it has blown out in time and expected to pay them to fix their own mistakes.

 

[alansidman]

To this properly, you will need to build a specification sheet outlining exactly what you will deliver and have the client agree to that delivery. Then put an hourly rate to what you have agreed to. If the client deviates from the original agreement, you will need to come to an agreement on Change Orders and you will need to then come up with pricing for the Change Order. I urge you to put everything in writing and have the client agree.

 

[Logit]

I agree with alansidman comments.

You were given $400 as a deposit to begin the project. This is an indication your client understands the cost and value of a well programmed product. Additionally, you had
to learn their system and in doing so identified several errors / omissions in that system (great bonus to the client). Use that as a selling point if the need arises.

My feeling is $3000 to $4000 is reasonable; whether you charge a total fee or by the hour - make certain your hourly rate ends up totaling to $3000 to $4000.
My client contracts included the testing before and adjustments after delivery (there is always something that pops up that was not understood prior to delivery). I felt that was another selling
point for my fees.

Major changes to the delivered product are an additional cost at the same rate as the original contract ... that is how I handle it.

Best wishes.

 

[ExcelAtEverything]

Each of you has made excellent points to consider. Thank you so much. I especially am feeling response from Logit.