Last week I was looking to partner with a local company on a potential project, and I ran in to what is probably my least favourite question to hear in business. “What’s your budget?”.
Why do I hate this question? Well, because in most cases, it’s followed by “sure.. we can do it for that”, and suddenly you’re committed to spending your entire budget. There’s always a part of me immediately thinking, “damn, why did I say that figure? I should have said something a bit lower. Maybe I could have got it cheaper”. And right there – you’ve got an unhappy customer and the project hasn’t even started yet!
When quoting a job, I always feel you should be looking at the requirements and estimating the time its going to take, breaking it down in to tasks and producing a rough timeline forecast, then checking this fits in to your teams workload. Now you know how long it’s going to take, you can multiply that by your hourly rate, and you have your quoted figure.
Sure, sometimes it’s a good idea to quickly ask about the budget just to qualify the client – there’s nothing worse than producing a quote on a £20,000 job for a client with a £2,000 budget. But the response to the question should never be “Sure, we can do it for that”.
At Nighthawk Software we will always provide a ball park estimate initially to ensure we are both on the same page budget wise. This will then be revised when a formal quote has been completed and the requirements properly analysed.
All quotes are provided free of charge and are non-binding. If you have a project in mind, please get in touch to discuss it.