November 9, 2024
Whose face will it blow up in?
A software developer who was new to value pricing told me that the prices on the proposal he was working on were so high they made him nauseous.
He asked, “I know the value is there, but how can I justify charging a quarter million dollars for three to six months of work?”
I asked, “What if it turns out it actually takes you two years, and they never pay you another dime?”
That calmed him down.
Here’s the thing...
If you give a fixed price for a custom project, you are taking on all the risk of scope creep that the client normally shoulders.
Many clients will happily pay a premium for you to take on that risk for them.
And sometimes, a project will blow up in your face, so you better dang well be charging enough to survive it.
Yours,
—J