Tales of a Designer

The Challenge of Quoting Projects

As I was going through reading some of my old blogs posts from this site, I came across 5 Things I Learned Starting a Business. As I was reading those, I felt that I’ve only gotten better at those 5 things, but also tried thinking of things that still need to be improved on, and the first thing that came to mind was quoting projects.

We have tried different approaches and we have far from mastered being consistently right on our quotes. At first we tried doing the hourly thing. This proved the be the worst solution for us because it was very challenging tracking hours to the minute. At one point or another, I always went over the hours specified for the project, which ends up in us losing money and having issues staying within the project budget.

Our next approach was, which we’re still using is just giving the project a total price, loosely based on an hourly rate. This has worked for two reasons. The first is because we’re in a different mind state in not having to stress over every hour spent. This allows us to be as creative as we need to in our research/design/development and not short ourselves because of the limitation on hours.

The second reason this has worked, is because when we meet and go over a quote before sending to a client, we all make sure we’re in agreement on the price tag. When we get to a point that we feel that we can crank out a project for a certain amount, then we are comfortable on whatever time we spend on the project. Again, this isn’t the best solution, but it’s worked for us lately, and we’re still working on refining this as well.

It’s not easy quoting projects, however, I imagine that the more we get used to working with each other, the better we will be at estimating the costs of certain tasks of a project. But it seems like only time will get us better at quoting.

How do you normally quote projects? Has your method been effective for you?