Generate
the estimate. The Pro version of the Proposal Kit and the
Estimate Pack includes spreadsheets used to create estimates.
Once you have interviewed the prospect and have a clear design
and diagram, you will have a list of all of the components needed
to create the project. The spreadsheets are designed to plug in
your own rates along with the costs and quantities of each component
of the project (number of pages, e-commerce, custom programming,
affiliate programs, image editing, software license fees, etc.).
Our estimate spreadsheets will calculate 3 different payment plans
to choose from. The calculations can be plugged into the Proposal Kit's
payment plan documents.
You must have
a method for creating consistent and accurate estimates based
on the information gathered during the interview and design process.
Your estimate spreadsheets are designed for internal use only.
You should not show your client the original estimate spreadsheet
or you will be answering all kinds of questions about why you
are charging for admin time, spell checking, safety padding, etc. The prospect
should only see the final total and possibly a breakdown of individual
components such as 3rd party fees (hosting costs, licensing fees,
etc.). This higher level of estimates is also input into the "Cost
Summary" document or the Short Form Work Order document
included in your proposal if you are using the Proposal Pack and/or
Contract Pack materials.
After each
project, use the Per Page Average spreadsheet to calculate how
much you over or under-estimated the project. Then edit your Estimate Pack
spreadsheet for the next project to account for the difference.
For example, if the page creation took longer than expected, increase
your time per page accordingly so the next estimate will be closer
to the actual time.
You should
use a time tracking system to account for all of the time spent
on a project so you can accurately estimate each project. Track
all time spent including administration time, client contact,
etc. You need to capture all of the actual development time and
the hidden time spent. A good time tracking tool is TimeSlips.
You can also find time tracking utilities by searching software
download sites such as ZDNet.
The spreadsheets
are supplied in Excel compatible formats which work on Windows, Mac and Linux platforms with any supported office applications (not just Excel).
The payment
plans in the spreadsheet and Payment Terms document (included
in Contract Pack) include both flat fee and fixed price estimates.
Developers usually want to charge hourly rates, clients usually
want a fixed price up front. The trick is to find a solution that
works for both. Use the estimate spreadsheets to help determine
a more accurate fixed price padded to account for admin time and
unforeseen events, then protect yourself with a detailed specification
and a payment terms document that allows extra change requests
by the client to be charged at an hourly rate.
Our Contract
Pack also includes change forms for when a contract or project already
signed and underway needs to be changed. Avoid "feature creep"
by having the client sign off on any change requests that alter
the scope of the project, including deadline changes and increased
costs.
The
Pro version also includes a CD-ROM/Flash presentation estimate
spreadsheet and a video production estimate spreadsheet to help
generate quotes for other multimedia presentations. The spreadsheets can be altered for use with any type of project by editing the line item descriptions.
Trick: When
you first start using an estimate tool such as our estimate spreadsheets,
create some sample estimates based on past projects you have done
(even if they were not paid for). By creating sample estimates
based on known work you have done previously, you can create estimate
templates to use for future projects which will be more accurate.
This will also decrease the time it takes you to generate each
estimate, allowing you to get estimates out to prospects while
they are still hot.
Continue
to : Generating your documents
Back to
: Tutorial Index
