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From "Simon Kelly" <>
Subject Re: help.. what do i charge
Date Wed, 19 Mar 2003 10:55:43 GMT
The UK Local Authorities do have a policy on purchase of software (and other
products), and I think, but don't quote me, you can get a copy from the
Government offices in London.  This outlines the policy of product offers to
the government in general ascertaining to the price, guarantee and support.
ALSO, to the governments right to get compensation from *YOU* if the product
delivery, performance and support are not met. (Reference to Rolls Royce's
near bankrupting failure to get *one* engine on the test bed in time).

The idea of "pretending" to be a UK local authority and asking around is, to
say the least, a VERY bad idea.  For a start it is illegal, and you will be
looking at a crippling fine, and possibly a short visit to one of Her
Majesties "special" buildings (If you catch my drift).

Think in these terms.

How many hours did the product take to build? (Don't add any here, auditors
are very nasty people).
How much is one hour of your time worth? (A top developer will make in
excess of 40 uk pounds and hour)
What are your overheads? (What was the material cost, and *beer* does not
Who else was involved (that you had to pay), who charged you? (you can take
this and add maybe 5-10% as a clerical charge)

Add this all up and work out what you want as a profit.  I would suggest
between 10-15% on the total for above, LESS the clerical charge on external
help (auditors again!)

I think that if you do this you will come in somewhere between a very large
company (who can afford a smaller profit margin) and the smaller companies
(trying to keep up with the large fish)

Hope this helps in your decision making,


----- Original Message -----
From: "Jamesey" <>
To: <>
Sent: Wednesday, March 19, 2003 9:46 AM
Subject: help.. what do i charge

> I have written a small payment portal using struts.. i have a buyer who
> wants to talk cash..but i have no idea what i can sell the product for.
> I am not selling the code itself.. only the app and support.
> the app allows them to look up their ref number and pay their balance..
> simple about a dozen screens..
> all i have to write extra is the db interface (to my db Facade) and the
> CCPayment interface to my (CCFacade)
> Anyone know what i should be charging?
> its my first product sale?
> James
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