Changing the Total Cost Discussion

June 19, 2013

Discussions with client representatives concerning hourly rates can be frustrating. The belief that an hour of any person’s (or supplier’s) time is exactly the same as any other is like comparing software engineering services to purchasing a case of creamed corn.

Even this focus: Real Hourly Cost = Total Work Done/Hours to Do It

…Doesn’t show the true picture. It isn’t that easy. Even in cases where the work is closest to a commodity, like simple programming to update text on 1000 screens, there is more to the cost than just the work being done. We have to consider continuous improvement, efficiency, partnership overhead and an intangible called “Confidence”.

Below is a Total Value downloadable checklist that elevates the cost/value discussion to a higher level. The checklist is intended to encourage enlightened discussion about hourly rates and the expectations between client and development partner.