Ask HN: Why do UK companies think that software development is cheap?
Just got asked from a reputable university to build a mobile phone application on (Windows, Android, iOS) with a CMS. The mobile apps are to include photos / videos / online shop / payment etc.
They wanted this done by 1st September, which is giving me 5 weeks to complete for the grand total of 3k.
Does anyone else find this on the low side?
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[ 4.4 ms ] story [ 53.3 ms ] threadRealistically if you have some experience you can expect (outside London) to earn ~40k pretty easily (and much more if you are good/prepared not to do the easy stuff) Given you are freelance my view is that you can ask for a 10% premium to cover sickness and fallow periods. So aim for 44k so I think that £4700 would be a fair quote (low end) for this job.
Of course this assumes that the work can be done in 5 weeks on 40 hr weeks. If in fact you will need to work 60hrs a week you need to be asking 50% more ~£7k
That is extremely low and, IMHO, not even close to what you'll need to make freelancing viable.
My rate is about 100% more than my former FT salary expressed as an hourly rate and it wouldn't make sense for me to freelance for much less than that. Remember all of the hours that you are not getting paid, looking for leads and doing admin work. Also you don't receive benefits as a freelancer.
Counter with a realistic timeline of deliverables and justify your quote.
When you tell people your rate is 60/70/80 pound an hour they laugh because they themselves most probably earn less as a full time employee. What they don't know is that this money has to cover the likes of sickness, holidays, hardware etc. you need to let them know that.
A client that comes in with such a low estimate (£3k for a £100k job) is going to take days of negotiations before agreeing to a sensible price ... if they ever will. There's no way that time will be recouped by winning the job. Ergo, say no and walk away because it will cannot be profitable to persue it.
Time spent pitching for work is lost time. Choose your battles wisely.
If "got asked from a reputable university" means the client is a university, in USA at least universities and non-profit institutions tend to pay less than for-profit.
Generally, I avoid firm fixed price contracts and quote an hourly rate and a non-binding estimate of hours. The reason is it is usually very hard to accurately predict how long a software project will take. Sometimes if it is something very cookie-cutter that you have done several times before, you can make a fairly good estimate of how long it will take.
Are they handing you wireframes and design files? E.g. has somebody already done all the work of thinking through the UX, come up with all of the pages, handed you the static assets, and all you have to do is program it? Because if not, that part alone can take months.
Are you prepared to develop on multiple phone platforms? That could take 5 weeks.
Look here: http://www.itjobswatch.co.uk/contracts/uk/developer.do
This isn't quite the same sort of work, but it will do as a rough guideline. Look at the average rate outside London: £350.
So, what does this work pay by comparison? £3000/25 days=£120/day. Not enough! The page above suggests £300-400/day is a usual daily rate. So you could use that as a guide. 25 * 300=£7,500; 25 * 350=£8,750; 25 * 400=£10,000.
This isn't the sort of work I normally do, so I'm not hugely familiar with what people tend to charge - but I think £10,000 might even be a bit low. There's possibly people who've done this before laughing at the very idea right now. After all you'll be shipping on 3 platforms with payment/videos/online shop, and in only 5 weeks. If you're going to need to pay somebody else to do anything (artwork, programming), that is going to eat into this sum at quite a rate. Don't forget hardware and software costs too.
Aside from the scope, there is also a good possibility that more people at the client end will want their fingers in this pie once it gets going, and that will delay things further.
(Apologies if none of the above is news to you. I just assume that if you're contemplating doing this for £3,000, then it's something you haven't done before.)
We software engineers more often than not, project the 'I can build that easily' view (you can see that in this thread too). Many of us are too eager to put our engineering ego before business sense. We forget that it is one thing to demonstrate technical feasibility and quite another to build a finished product. Even the smallest piece of software needs real good effort to make it complete.
This is compounded by having substantial pieces of software available as open source and customers always read that as free as in free beer. It takes quite some effort to make them see otherwise.
When we say its easy, when many of us give our work away for free (even with good intentions), when we put engineering before business, we are steadily moving software in the path to being a cheap commodity.
All this is not even considering availability of software talent in countries where the skill set is available for much less...
Realistically, in the US at least, regardless of web app or mobile app you are looking at likely multiple 10's of thousands of dollars to do it right assuming it is all new code and design work still needs to be complete etc.
As an FYI, I have seen a few companies make these wild type suggestions to find out who NOT to use. If someone even entertains it they know the person has no clue and so they won't work with them.
You could easily argue it is underhanded, or slimy, but I don't think it is as uncommon as we would like to think. Just like an Enterprise level client who won't pay for a $99/month SaaS, but if you change that price to $999/month, suddenly you are a contender and taken seriously. The value proposition is about perception, not reality for many larger organizations, which I put health care and universities in too.
I have other contracts that pay above the market rate for my services. I did email the person back and said they would be able to get my services for one week for 3k.
I was interested in what people thought about the offer, as recently I've had a few offers in this bracket. (Which I've politely turned down).
Assuming the latter and assuming you work 5 days a week 8 hours a day for 5 weeks, it amounts to 200 hours. You will be working for 15 pounds an hour.