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What to charge for setting up a shopping cart
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jema
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Joined: 28 Oct 2004
Posts: 26565
Location: escaped from Swindon
PostPosted: Thu Oct 28, 04 11:10 am    Post subject: What to charge for setting up a shopping cart  Reply with quote    

I am moving into the business of setting up shopping carts for small businesses.

I did :

http://www.arkwrightshomebrew.com/

largely out of annoyance at the way the owner had been taken to the cleaners by rogue web designers. Deciding what to charge was very hard.

I am wondering what the going rate actually is, and what small businesses feel is fair?

jema

mrutty



Joined: 28 Oct 2004
Posts: 1578

PostPosted: Sun Oct 31, 04 8:12 pm    Post subject: Reply with quote    

I've been thinking about this one. 1000 a day is normal consultant rates in my line of work, but some companies rollout some 600 a day guys to keep a steady trickle of work coming in.

A site takes what about 3-4 days is the pictures and text is almost there. Small business, limited money, I'd pitch 2K for the first week of set up and then the hosting and an agreed monthly maintance cost. I'd also allow the companies to add this time up and keep them up todate on how much time they have in credit and any new ideas (break down of the sales they've got via the site would be really cool). I'd add a pre agreed hourly or daily rate for any new work valid for say two years. I ask for this from my big suppliers as I can then forecast costs.

jema
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Joined: 28 Oct 2004
Posts: 26565
Location: escaped from Swindon
PostPosted: Sun Oct 31, 04 8:29 pm    Post subject: Reply with quote    

Those are certainly what you might call "going rates" in the industry for skilled work, but shopping carts are not rocket science to set up.

They only call for a fraction of the skills that I have been able to charge out at 600+ a day.

jema

mrutty



Joined: 28 Oct 2004
Posts: 1578

PostPosted: Sun Oct 31, 04 8:44 pm    Post subject: Reply with quote    

If you're happy to go cheapier that I would whilst you're enjoying the work. It's the nasty split of doing it because you want to and having to do it as a job.

The thing is you have at least three other IT people near by that could pickup any 'extra' work you had if necessary + the three staff you have at home.

Me, I'd go for it and see if I couldn't get a week of work per month of pure maintaince (about 14 sites I figure). I'd go for local, friendly chap only wants to help business grow type thing.

tahir



Joined: 28 Oct 2004
Posts: 43966
Location: Essex
PostPosted: Mon Nov 01, 04 10:02 am    Post subject: Reply with quote    

mrutty wrote:
I'd go for local, friendly chap only wants to help business grow type thing.


I'd agree with that. A lot of the target customer has no idea what's out there or how much it's liable to cost, so a friendly face is worth loads.

jema
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Joined: 28 Oct 2004
Posts: 26565
Location: escaped from Swindon
PostPosted: Mon Nov 01, 04 11:26 am    Post subject: Reply with quote    

I have just popped out to my one customer to deal with an email issue. For the small businesses it is this hand holding that costs, not the actual tech which is quite simple.

jema

mrutty



Joined: 28 Oct 2004
Posts: 1578

PostPosted: Mon Nov 01, 04 12:03 pm    Post subject: Reply with quote    

Now I would take this off of the monthly support budget. Then at the end of the first year you'll possible be at the point where in theory he owes you. I'd then use this as the opening to the bargaining for more services. Support of his shop PC, fitting ADSL firewall, VPN (saves driving), patching, etc

tahir



Joined: 28 Oct 2004
Posts: 43966
Location: Essex
PostPosted: Mon Nov 01, 04 12:08 pm    Post subject: Reply with quote    

Does he have a monthly support contract? I'd definitely get all my clients to have a VPN of some sort, not too expensive nowadays is it?

jema
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Joined: 28 Oct 2004
Posts: 26565
Location: escaped from Swindon
PostPosted: Mon Nov 01, 04 12:20 pm    Post subject: Reply with quote    

I think he'd have a heart attack if I started mentioning VPN, heck he is not even on broadband.

A gently gently approach is what is needed i think, once a small business is actually making money from the shopping cart, then is the time to start getting more complicated.

jema

tahir



Joined: 28 Oct 2004
Posts: 43966
Location: Essex
PostPosted: Mon Nov 01, 04 12:23 pm    Post subject: Reply with quote    

That's very true, he has to see some benefit in what you're doing

mrutty



Joined: 28 Oct 2004
Posts: 1578

PostPosted: Mon Nov 01, 04 12:26 pm    Post subject: Reply with quote    

Trust - that's the key for all businesses

Treacodactyl
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Location: Jumping on the bandwagon of opportunism
PostPosted: Mon Nov 01, 04 7:22 pm    Post subject: Reply with quote    

Would it be possible to somehow agree a % of the new turnover? I know there may be a few problems agreeing the proffit rise but I'm sure you can convince people that it's in both your interests to make a good site and keep it running.

jema
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Joined: 28 Oct 2004
Posts: 26565
Location: escaped from Swindon
PostPosted: Mon Nov 01, 04 7:32 pm    Post subject: Reply with quote    

I think that a % deal is problematic. One of the things I emphasise is that I am doing nothing that stops the business deciding someone else should take over the maintenance. I think that is the only ethical way of doing it.

But turnover builds up with time on a good site, I would therefore be vulnerable to being discarded at the point the work came to true fruition.

jema

Nick



Joined: 02 Nov 2004
Posts: 33710
Location: Hereford
PostPosted: Fri Nov 05, 04 12:34 pm    Post subject: Reply with quote    

Then make the deal for a percentage of the increase in turnover or profits to run for 6/12/24 months after you stop working for him?

There are many problems with this, but many solutions, too. I've just signed a ten YEAR agreement with a large company from the date we finish working together.

jema
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Joined: 28 Oct 2004
Posts: 26565
Location: escaped from Swindon
PostPosted: Fri Nov 05, 04 12:40 pm    Post subject: Reply with quote    

NickHowe wrote:
Then make the deal for a percentage of the increase in turnover or profits to run for 6/12/24 months after you stop working for him?

There are many problems with this, but many solutions, too. I've just signed a ten YEAR agreement with a large company from the date we finish working together.


Nice

jema

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