“Don’t mess it up, you only have one chance,” is what you might be thinking when it comes to app development. But I want to help you avoid that thinking by sharing with you some points of what you should be aware of and what to avoid when requesting software development quotes.
Too Low
Sometimes the price may be reflective of the quality. This is by far the most dangerous. Many vendors will quote you a very low price only because they want your business. They want you to sign a contract for the work so they can start working. But, as soon as the work begins to progress, you’ll collectively discover more complex issues that require more work, which in turn means the price will be raised. It’s hard to say whether or not they do this intentionally, some probably have good intentions but it is difficult to tell.
Any company that has experience building software should know that the process will naturally lead you to discover new, complex issues and the price will rise, so in good conscience, they shouldn’t be trying to low-ball you. They should be confident that their price, though not always the lowest, is the most reliable. If you’re paying anything less than $30k, you’re probably going to get a poor result for an app and probably spend more money there than you should, so you might as well burn your $30k to find the right vendor for you.
Too High
There are some development companies that have experienced what was just mentioned above in terms of quoting too low, and then being left to manage their app. Eating the cost of additional development is no fun (we’ve done it). So, these companies hedge their bets by quoting you very high prices, like $250k.
There are apps out there that cost $250k to build, but those apps are not an MVP, those apps are enterprise-quality apps with a different level of software development rigor compared to what you need to get your MVP to market. If you are a software entrepreneur working on an MVP, you should be willing to spend a reasonable $70k, not a crippling $250k.
For a deeper discussion about the cost, check out this article: App Development: How Much Does It Cost?
Quoting a Price Too Soon
Every once in a while you hear of a vendor who is so eager to get your business that they’ll turn around to give you a price for everything after one, maybe two meetings. The reason this is something you want to look out for, is because there is no way that they can know what the app will really cost to build through one or two meetings. They wouldn’t have explored enough of the app concept with you, to make sure it is something they can handle and want to spend their time working on.
Comprehensive Quotes
Some companies will do a lot of exploration for free up front. If they are willing to do that, great. If you can find a company that will make time for multiple sessions to gather requirements and explore features for free, it is a solid indicator that they are confident they know what they’re doing, enough to risk the time they’ve spent with you, should you choose to work with another company. This CAN be good practice, but… exploration is work, and you should pay for work. If they gather your requirements and don’t give them to you AND you don’t pay for it. Now someone else has the requirements for your app, and that is obviously not good.
Vague Wording
I was reviewing a quote for a friend, just to give her a second opinion. As I reviewed the scope of work, the price, and other language in the quote, I came across a clause that basically said: “This price won’t be the actual price.” A huge red flag. They were quoting the works as it was described making it seem like a fixed-price contract, but looking at the fine print, it actually said that my friend was just buying a certain number of developer “man days” worth of work. Two completely different things. Please be careful and read through the fine print as tedious as it may sound. Don’t accept language that lets the vendor get off the hook, otherwise you will pay for it… literally.
Fluffy “Non-content”
You may come across some quotes that have filler material to make it look like the quote says more than it really does. Different software vendors might include information about their development lifecycles, processes, values, or company history. There’s nothing inherently wrong with this material, but it is not a quote! Don’t let a vendor make you feel like they understand your needs by filling your quote up with things that have nothing to do with you.
It may be hard to get started on the path of app development when you don’t know what you should be looking for, the good or the bad. In the process of developing an app you will have to review several quotes. But now, you are that much more knowledgeable to help you put your best foot forward. Doing so will not only help you, but your company as well. If you’re ready to start developing your app, let us know, we’d love to work with you on your next project.
0 Comments