WHAT GOES INTO PRICING A SOFTWARE ESTIMATE | RICK REA

If you have ever shopped around for development help, you probably received a wide range of estimates. Why is that? How would it cost one team $500,000 and another team $100,000 to complete the same project? I’m the founder of a JavaScript development agency in Boston, and we have been on both sides of the spectrum. We’ve been the cheaper option — and we’ve been the more expensive option. There are actually a number of reasons why this can happen, and in this article, I’ll try to shed some light on what’s actually going on so you won’t be confused by development estimates again.

How Much Are Your Resources Being Paid?

The first factor that really can drive the price up or down is how much money a company is paying their resources. It sounds simple enough but it can vary based on location and cost of living. For example, the average senior developer in Kiev, Ukraine makes $3,500 a month, while the average senior developer in Boston makes $8,500 a month. This is a significant difference, and there are plenty of cities that cost even more than Boston and plenty of cities that cost even less than Kiev. Even within the U.S., a developer in rural Maine might not make nearly as much as a developer in a major city. It’s a common misconception that more expensive always means better talent, but that’s not always the case. Even though the Ukrainian developer costs less, this does not nullify their skills nor does it mean that you will receive a poorer quality product.

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Business News – RICK REA.