Software project cost estimation isn't as simple as shown here. You lose a lot of money if you do this way. Have you calculated your efforts to arrange client meetings and efforts to manage the team, resolve disputes, and cost of legal action on non-payment? A lot more of hidden costs is missing.
By engaging 3 resources, the expected profit by you is very low, For this scenario, I would charge approximately 1 lac to 1.5 lacs, I don't care about the market cost, because I provide some value-added services to my customers, so I would prefer to have a huge profit margin, like 100% or 150% profit margin on actual project cost. If the customer does not want to develop at this cost, I don't care he/she can go to some other developer who develops software for a cheap price. What do you think?
@@HackerKernelIN Yes, I know its just an example, but you have not added the involvement cost of the company owner, if I would be the owner, then I will add my involvement cost, marketing cost, uncertainty expenses, like errors, exceptions, research time cost, etc, which would occur during the development phase.
Ok, good. Now, this takes as a given the hardest part - the estimate of how much time it would take the people to do it - the 30 days. BUt that would be another video. Another thing I think about when watching calculations like this is that it doesn't take the market into consideration. For example, everybody would like to make 30%, but you could be in a market where other companies have cheaper employees and costs or that find 20% profit is good for them. Then, this exercise is a starting point to eventually reach the point where the client says "This other company tells me they'll do it for 45,000!" Even if you discount the negotiation add-on you're don only to your 49,000 with your 30% profit.
how is that even the last part logical, if you have a project you firstly estimate time for development , you can't just leave the porject unfinished just because of dev worked the 15 or 20 days
Software project cost estimation isn't as simple as shown here.
You lose a lot of money if you do this way. Have you calculated your efforts to arrange client meetings and efforts to manage the team, resolve disputes, and cost of legal action on non-payment? A lot more of hidden costs is missing.
my soul left my body after seeing
30% of 770 is 30 💀💀💀
Good 👍👍
Nice video bro keep it up i found this type of video from last 2 month and finally i found your channel i subscribe you now 😃.
I am with you..
This really a very good explanation, and good plan. If possible please do a video on project timeline too bro. Thank you soo much much this
By engaging 3 resources, the expected profit by you is very low, For this scenario, I would charge approximately 1 lac to 1.5 lacs, I don't care about the market cost, because I provide some value-added services to my customers, so I would prefer to have a huge profit margin, like 100% or 150% profit margin on actual project cost. If the customer does not want to develop at this cost, I don't care he/she can go to some other developer who develops software for a cheap price. What do you think?
It's just an example.
@@HackerKernelIN Yes, I know its just an example, but you have not added the involvement cost of the company owner, if I would be the owner, then I will add my involvement cost, marketing cost, uncertainty expenses, like errors, exceptions, research time cost, etc, which would occur during the development phase.
@@UMARZONE I think that is the markup cost of the 30% that was added to every member per/day cost in this example
Ok, good. Now, this takes as a given the hardest part - the estimate of how much time it would take the people to do it - the 30 days. BUt that would be another video.
Another thing I think about when watching calculations like this is that it doesn't take the market into consideration. For example, everybody would like to make 30%, but you could be in a market where other companies have cheaper employees and costs or that find 20% profit is good for them. Then, this exercise is a starting point to eventually reach the point where the client says "This other company tells me they'll do it for 45,000!" Even if you discount the negotiation add-on you're don only to your 49,000 with your 30% profit.
You need to provide value to customer, if you do that customer will come to you. Service industry is all about value & quality.
As your company grow , the costing grow..
how is that even the last part logical, if you have a project you firstly estimate time for development , you can't just leave the porject unfinished just because of dev worked the 15 or 20 days
When to add gst?
18% on the final calculated cost.
Gst should be excluded.
Hey
Can you help me cheaper and best developer make my software
baba app server, db server vagera kaun dega? aur gst?
Those are additional services, Now a days client prefer using Aws or cloud servers.
Where's Cost for
Support
Allowances
Overheads
Management Cost
This is not a scientific method for cost estimation. Where did you learn this method?
What is the scientific method, can u please share a link or something, so I can study and research it, thank you.
Personal experience, I have been running a Software company for 4 years now.
Definitely add value, but it's not a practical advice
How to estimate api's cost
Experience
headache
Is that english?
Man you look really tired
😅 Yes.