Comments on: Random Thoughts on Estimation http://blog.brodzinski.com/2009/09/random-thoughts-on-estimation.html Dealing with software projects in real life Fri, 10 Feb 2012 19:07:34 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Pawel Brodzinski http://blog.brodzinski.com/2009/09/random-thoughts-on-estimation.html#comment-2395 Pawel Brodzinski Wed, 23 Sep 2009 08:13:00 +0000 http://blog.brodzinski.com/2009/09/random-thoughts-on-estimation.html#comment-2395 Gabriel,<br /><br />One thing I didn't specified here is I separate work estimates from pricing. If I want for some reason win the contract I can still undercut prices no matter if my schedule is more or less reasonable.<br /><br />If I play with high prices there's no problem to keep the prices high even though you know project will be fairly easy.<br /><br />And one more comment on undercutting: if your estimates are poor and you're always after schedule you either have high margins which covers that or you aren't profitable. In the latter case it's usually better not to do a project at all. Gabriel,

One thing I didn't specified here is I separate work estimates from pricing. If I want for some reason win the contract I can still undercut prices no matter if my schedule is more or less reasonable.

If I play with high prices there's no problem to keep the prices high even though you know project will be fairly easy.

And one more comment on undercutting: if your estimates are poor and you're always after schedule you either have high margins which covers that or you aren't profitable. In the latter case it's usually better not to do a project at all.

]]> By: Gabriel Blanc-Laine http://blog.brodzinski.com/2009/09/random-thoughts-on-estimation.html#comment-2394 Gabriel Blanc-Laine Wed, 23 Sep 2009 00:27:25 +0000 http://blog.brodzinski.com/2009/09/random-thoughts-on-estimation.html#comment-2394 On the 2nd one – be careful. History can work for or against you. If you have a history of under-cutting everyone else you may run into problems raising rates if people think you are the “cheap” firm. If you’ve traditionally had higher prices and start quoting lower, clients often wonder if there has been a dip in quality as well. And additionally the market changes permanently, and you should adjust in real time. On the 2nd one – be careful. History can work for or against you. If you have a history of under-cutting everyone else you may run into problems raising rates if people think you are the “cheap” firm. If you’ve traditionally had higher prices and start quoting lower, clients often wonder if there has been a dip in quality as well. And additionally the market changes permanently, and you should adjust in real time.

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