Custom Software Pricing

Discover how custom software is priced, and the various models used.

About Custom Software Pricing

Custom software pricing varies widely by company, region and model used. This can be very confusing, as it is hard to reconcile the fact that one company can estimate $20,000 and another company can estimates $150,000 for the same set of requirements. Some of this can be explained by the difference in hourly rates ($25 per hour is typical for India, for example, while $100+ per hour is common in the USA). But quality also plays a huge role in the difference in costs. Generally speaking, the higher the rate, the better the quality. For very simple projects, the quality difference might not matter a lot. For anything even remotely complex, quality will be a huge issue.

Hourly vs. Fixed Price

Generally speaking, most offshore companies, including many from India and China are going to quotea fixed cost. Of course, nothing about it is fixed, but we'll get to that in a minute. In the U.S., most companies estimate the project, and bill hourly. Both have advantages and disadvantages.

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Our Pricing Model

So which pricing model do we use, and why? As an American based company we charge per hour, but since we employ many developers from oversees (mostly from Europe), we charge a much lower rate than the typical American company does.

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How Much? How Long?

"How much" is the most commonly asked question we get, followed closely by "how long." While there are no typical projects to compare yours to, we can make some very rough estimates based on custom software projects we've worked on within the last 3 to 5 years.

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Custom Software Developer Rob Carr

Rob's Take

If one company quotes you $50,000 and another quotes you $75,000, you might be inclined to conclude the $50,000 quote is the better deal, assuming you cannot see any difference between the two companies. In our industry, nothing could be further from the truth. Low-balling is about as common as a computer virus. In reality, that $75,000 estimate could be very close, as the team spent enough time to accurately determine the effort to complete your project. Meanwhile, that $50,000 "fixed price bid" could easily turn into $100,000 or more, because once the programming starts it is very hard to pull the plug ona project. My advice is to make sure that every single detail about your project is known and communicated in advance, so you are sure what that $50,000 fixed price is based on.

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Erica, Company Confidential

Cincinnati, Ohio

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Fred Malinis, San Francisco Travel

San Francisco, California

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Nat Wallen, Bella Ruby

Charleston, South Carolina

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Mike Gobbo, Universal Studios

Los Angeles, California

Working with the MyProgrammer team was extremely easy and they were more than helpful in designing a program to fit our needs.

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Chelsea Burns, Coquille Indian Tribe

Bend, Oregon

We have been very pleased with our relationship with MyProgrammer. They have delivered a quality application that met our needs completely.

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Wayne Koch, Inmediata

Delmar, New York