Page 2 of 2 FirstFirst 12
Results 11 to 20 of 20

Thread: tips on quoting for projects

  1. #11
    just me duncan drennan's Avatar
    Join Date
    Jun 2006
    Location
    Cape Town
    Posts
    2,642
    Thanks
    119
    Thanked 94 Times in 77 Posts

    Question need some help and suggestions here...

    Broken things up into a bunch of steps (probably still missing some) and guestimated how long each step will take (tried to over estimate). I'm still pretty sure I'll end up doing more hours than I've guessed (I used the lower of two numbers).

    Then multiplied that by the rate I'd like to earn and ended with a very large number!

    Now, I believe my time is worth that (and as I said I'll probably end up working more hours resulting in a lower actual rate), but I'm not too sure that they will think so.

    The amount came out to what I'd guess to be 3 - 4 months salary for an engineer (obviously got no idea what they pay their staff - but do have a friend that works there...hmmm).

    What do you think? Quote it and see what the reaction is? May be ,may be that they feel they are getting reasonable value

    For this project, the client has the skills to do it, just not the time (engineers have other important tasks to do, but this is also a big need right now). At the end of the day they'll compare it directly to what they would have to pay to put one of their guys on it.

    Suggestions?
    [SIGPIC]Engineer Simplicity[/SIGPIC]
    Turn ideas into products | The Art of Engineering blog

  2. #12
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    What's your guestimate on time to do the project?

    How long would one of their engineers take to do the project full time?

    "Casual" use of professionals comes at a higher rate because allowance is made for the fact that they are not always employed, and there aren't all the fringe benefits.

    I think Chris Bouwer might be able to shed more light on that aspect.

  3. #13
    just me duncan drennan's Avatar
    Join Date
    Jun 2006
    Location
    Cape Town
    Posts
    2,642
    Thanks
    119
    Thanked 94 Times in 77 Posts
    Quote Originally Posted by Dave A View Post
    What's your guestimate on time to do the project?
    I'm estimating around 250hrs. This includes some of the things which I would subcontract out.

    Quote Originally Posted by Dave A View Post
    How long would one of their engineers take to do the project full time?
    Difficult to say - they would have the information advantage at the start (background knowledge). Most of the knowledge has to do with fully understanding all the nuances of about 3 standards, but 1 in particular. They do have a version already, but want a bunch of extra features + future extensibility.

    Because it is a "side" project as such, it would probably take quite a while due to having to juggle it between the "real" work.

    Quote Originally Posted by Dave A View Post
    "Casual" use of professionals comes at a higher rate because allowance is made for the fact that they are not always employed, and there aren't all the fringe benefits.

    I think Chris Bouwer might be able to shed more light on that aspect.
    Yes, the "casual" rate is higher, but budget constraints are still a reality. Being an engineer (and an engineer will be the first person to see the quote) I know that we tend to under estimate the real cost of developing an item. I've learned a lot about how much time small things take over the last couple of months due to logging my hours for the contract work I do - enlightening!
    [SIGPIC]Engineer Simplicity[/SIGPIC]
    Turn ideas into products | The Art of Engineering blog

  4. #14
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    Quote Originally Posted by dsd View Post
    What do you think? Quote it and see what the reaction is? May be ,may be that they feel they are getting reasonable value
    I like face-to-face at times like these. It gives you a clue for next time - and also there's a chance to catch the ball if you're way off...

    The trouble is you've got to be in control of your own body language. It's why I stress the "I'm worth it" visualisation first.

  5. #15
    just me duncan drennan's Avatar
    Join Date
    Jun 2006
    Location
    Cape Town
    Posts
    2,642
    Thanks
    119
    Thanked 94 Times in 77 Posts
    Quote Originally Posted by Dave A View Post
    I like face-to-face at times like these. It gives you a clue for next time - and also there's a chance to catch the ball if you're way off...
    Good idea - I'll see if I can work things that way
    [SIGPIC]Engineer Simplicity[/SIGPIC]
    Turn ideas into products | The Art of Engineering blog

  6. #16
    just me duncan drennan's Avatar
    Join Date
    Jun 2006
    Location
    Cape Town
    Posts
    2,642
    Thanks
    119
    Thanked 94 Times in 77 Posts
    Had the face-to-face today which was a good thing. Turned out that he was quite happy with the quote - now I feel like I underquoted! (makes me worry I might have missed something )

    Anyway, I'll know within the next week or two what the head honchos have to say, but for now it seems positive
    [SIGPIC]Engineer Simplicity[/SIGPIC]
    Turn ideas into products | The Art of Engineering blog

  7. #17
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    Yee Haa!

  8. #18
    Silver Member
    Join Date
    May 2006
    Location
    Houston
    Posts
    361
    Thanks
    51
    Thanked 41 Times in 32 Posts
    I know that my comment has nothing to do with your question directly, but it is a small reminder of things that can go wrong, due to "tunnel" vision when trying to quote the best price to make sure you are competitive, and overlooking some seemingly tiny matter which comes back to haunt you at a later stage.

    A young relative started a new business, he sold a large power surge/lightning protection system to a casino.
    The unit was "guaranteed" to protect the equipment, but no-one told him that one lightning strike and the equipment itself was now useless and would have to be replaced.

    He had "quaranteed" the item he sold.

    End result, possibility of being sued and he had to at his own cost purchase an even better system to honor his sale agreement
    For his start up business this was a massive loss as his commission on the item had been a very small percentage.

    Do not overlook possible negative factors.

    So if you selling something as a agent, firstly check all quarantees, and make absolutely sure that you understand what you in turn are guaranteeing to your client.

    Yvonne

  9. #19
    just me duncan drennan's Avatar
    Join Date
    Jun 2006
    Location
    Cape Town
    Posts
    2,642
    Thanks
    119
    Thanked 94 Times in 77 Posts
    Now this is dragging an old thread out of the archives....

    I've certainly gained lots of experience over the last few years and approach quotes differently now. I still find them quite difficult to do, and fairly time consuming. There doesn't seem to be a clear way to do this for electronic design, but at least I have a framework now. So I wrote down my current "rules" for quoting.

    1. Always give a quote

    An offer is on the table ensures that you are in the running. Set a time frame for the quote and deliver on your commitment. This the first opportunity you have to demonstrate that you can deliver – make sure that you do. I recently quoted on a project and was shocked that at least three other companies had not bothered to deliver a quote.

    2. Know your worth

    Understand your own value and how that contributes to the project. Undervaluing yourself leads to difficult financial situations and lack of motivation. Overvaluing results in a begrudging client who is unlikely to use you again. Clearly communicate the value that you add.

    Read the rest on The Art of Engineering
    I would be interested to know what you guys think, and what your own "rules" are when you quote for a project or something that you don't actually know how long it will take.
    [SIGPIC]Engineer Simplicity[/SIGPIC]
    Turn ideas into products | The Art of Engineering blog

  10. #20
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    A great blog post, Duncan.

  11. Thanks given for this post:

    duncan drennan (09-Feb-09)

Page 2 of 2 FirstFirst 12

Similar Threads

  1. Some tips on forum etiquette.
    By Dave A in forum Administrative issues
    Replies: 0
    Last Post: 11-May-06, 09:10 PM

Tags for this Thread

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •