in reply to How much is an web-based application worth?
My company develops Enterprise Network Management application written in perl and our apps cost 1k to 45k+ depending on what the customer choose to purchase. We develop internally and contract other perl developers occassionally to help when development as needed.
We normally structure work by the job vs. an hourly rate. We mock up the entire project in Powerpoint, get the necessary feedback for our strategic direction, then its my job to determine what the time frame to deployment and how long to develop the application. This works fairly well for us and allows me to figure out how to bonus both internal staff and budget for external contractors (if necessary) to complete the task. I personally think its reasonable to charge $35 - $50/hr when doing by the hour. However, I prefer to say:
- here is the scope
- it needs to be completed in 30 - 60 days
- and we'll pay you X dollars.
This way, the developer has the freedom to complete the task when they can as long as they meet my release date goals. Whether they crank and get it done in 2 weeks or they take 60 days to complete the job is up to them. It pays the same. Some time we add additional incentives to complete the job quicker.
This is the same methodology we use when we bid for custom features and applications that either integrate or not integrate with our applications.
- Powerpoint the project
- conversation between the customer and development
- agree on a dollar amount for the job
- get the PO
- develop and deploy