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Someone asked How much he can charge his customers for building a school site for them
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this is a rough estimate of how i compute
pricing- it may work for you.
how much time it takes to complete the
project = t.
your hourly rate = h
other costs (e.g server hosting etc) = o
your charge = t*h+o.
It may lead to a very high figure , but, that is
the realistic charge or in other words, the
value of what you are providing the client.
period.
Your hourly rate should factor in overheads like
= electricity, phone call etc.
so say you charge , N1000k/hr. and the work
will take you 100hrs = the charge will be
N100k
server hosting etc external charges = add that.
For desktop software or other software that
could be distributed to many clients, the
pricing model will be the same,but slightly
more complicated. But the basics is billable
hours * (times) hourly rate+ external
expenses.
e.g say, you want to make N10million/yr from
your desktop/distributable software. And you
expect only 10 people out of 10000 your
approach to buy it, then the price of the app
will be 10m/expected market = N1m/per
person.
The 1m would have factored in the marketing
cost of distributing to all the 10 000 people
and leave you with profit.
Anyway, this is just a model. See an
accountant to help you construct something
better. Or just use your head or ask around
and know what others are charging. But in the
case of confusion – use billable hours.
