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Don't forget, no matter what you quote them, procurement will want to bring the price down 40-50%, just because that's what they do...
by outericky 11y ago
Don't forget, no matter what you quote them, procurement will want to bring the price down 40-50%, just because that's what they do...
- Gustomaximus 11y agoAlso don't forget, if a budget line owner wants this product they don't care what procurement negotiated down, just that they got their tool. For me the big questions are; 1) what are the user numbers. If they have 1,000+ people going on the app I'd discount the app price reasonably and maybe throw in the dedicated server. If they have 15 people using the app I'd hold the price, charge for the dedicated server. And 2) Would this be a almost guaranteed springboard for future deals? Do you have much alternate competition? If it's not a tender bid type scenario I'd in my limited information be inclined to set initial pricing at appstore levels (or a small bulk discount) plus a dedicated server fee. They'll likely comeback and say they want a discount, but if not great. You may as well start high unless there is the chance they will walk and not return without an initial discount. If they don't like it then you can ask them how much, and you've anchored the expectation of full price. If relevant I'd also put on the initial offer some X hours of customisation work type offer @ full price. It's better to do this as you might roll the work into the wider app, so it's possibly 'free' anyway. It gives you another negotiation lever if they look to discount as you can take this away. It's something to make them feel like a win, plus it will look as a higher perceived value than the cost to you if the agreed hours are set right. There's always a bazillion variables. I know nothing. Good luck.