1.Start with asking for a quote from at least 3 vendors.
– Any less and you are risking not having a complete range.
2. Get each vendor to estimate both how many hours your project will take to complete and the cost. The key is the number of hours!
a. Different software vendors charge different hourly rates and different fees. So it can be difficult to compare quotes based on cost alone.
b. A vendor can low-ball you in cost but they can’t lie in the estimated effort (in hours) your project might take. Because if they do lie, you will find out very very quickly. Also, the number of estimated hours determines how long the project will take to complete. Meaning, if the vendor gets the hours wrong they will get the timeline wrong.
c. Ask each vendor for a range in hours. This is a lot easier to provide right away when there is little info than an accurate single figure.
-> For us to provide an accurate quote we need several details: see blog post on the topic – link.
3. Here is how you make sure that you are getting an accurate quote: if all the vendors provide similar ranges in the number of hours, then you know that your quote is accurate.
a. if the majority of the vendors you asked for a quote have provided you with similar ranges and one vendor is completely off, then either that vendor – who is off – misunderstood something, or their quote is inaccurate on purpose as a sales tactic.
b. if half or more of the vendors you asked give you completely different ranges then your description is completely off. It is common for first-time software clients to get massive ranges in quotes for their idea. This is usually when a client goes back and created more detailed requirements for what they are looking for.
The important thing to remember is that a vendor’s quote is fully dependent on the information that you provide them. As long as all your vendors have the same requirements then you should have similar quote ranges.
Here is how a proper high-level* quote is supposed to look:
*A detailed quote will have the table (on the right in the image below) fully filled in. But to get a detailed quote there need to be at least one or two discussions to confirm requirements.
