Monthly support contract vs unconditional bug-fix guarantee

Sent by Jonathan Stark on March 14th, 2017

One more email about guarantees and I’ll drop it for a while :)

Imagine these two scenarios:

  1. A client asks you for a quote on a custom software project. You give them a price of $10,000 and plan to try to sell them a monthly support contract for $300/mo once the project is complete. If they accept both, you’ll gross $13,600 in the first year.

  2. A client asks you for a quote on a custom software project. You quote them a price of $25,000 for the project, backed by your 12 month unconditional bug-fix guarantee. If they accept, you’ll gross $25,000 in the first year.

Questions:

My answer to each of these questions is 2. 

What’s yours?

—J


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