Excel Application Development Costs - Need Advice

[TheRobsterUK]

Hi,

I am developing an Excel-based modelling and costing tool for a civil
engineering firm and am having some difficultly in setting a price for
the work.

Strictly speaking I am not a programmer (I'm really a research
scientist) but I have a lot of knowledge in this particular area and a
good knowledge of Excel/VBA and so have been asked, as an external
consultant, to develop a spreadsheet for this company.

Problem is I don't really know what the going rate for spreadsheet
application development is. I estimate it will take between 4-6 weeks
to complete the application and have so far been offered £1,500
(US$2,700) for it.

Does this sound reasonable? I think it doesn't sound like a lot
considering the amount of money some programers seem to charge. I've
been told that £40 an hour for a programmer is not unusual and so this
would work out at about £1,500 a week, or in my case 4-6 weeks would be
£6000-9000 (£11,000-$16,000). But the company I have been contracted by
are adament that £1,500 is the most they are willing to pay.

Does anyone have any advice? Should I ask for more? What would you
people charge to develop and Excel app. that would take 4-6 weeks to
complete?

Cheers
-Rob

 

[Chip Pearson]

Pricing is a difficult issue, balancing the fair value of your
work versus the legitimate budget concerns of your client.
US$2,700 for a project that will take 4-6 weeks (I'm assuming
full time work) is very low. I would charge somewhere in the
neighborhood of US$10,000 for such a project.



--
Cordially,
Chip Pearson
Microsoft MVP - Excel
Pearson Software Consulting, LLC
www.cpearson.com




"TheRobsterUK"
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[TheRobsterUK]

Thanks for the reply. Looks like I should hold out for more money.

Begginning to wish I'd gone into programming instead of engineering
You lot must be raking it in!

-Ro