Project Quoting Ups and Downs

How much should I quote this project?

This question plagues us freelancers time and time again.  How do we really come up with that $[number] we put at the bottom of the proposal?  I’d be willing to bet that no freelancer quotes the same price for the same project consistently.  There are always other factors that play into it.

It starts by assessing the project scope, deliverables, and time frame.  Just plug the potential client’s request into the formula:

X features  x  Y number of pages  +  Z deadline date = PROJECT FEE

Wouldn’t it be great if it were that easy?

Here are the other variables that you can’t calculate:

• The guess the number game. The number that the client has in their mind, which they have pre-decided they’re willing pay.  Everyone has this number, whether they come out and say it or not.  Will you meet this number?  Will you push it?  Are you bidding too low?
• The client from hell factor. Will this client be your next regret?  I’ve had a few bad ones.  Looking back, it’s always hard to tell which signals I should have noticed before taking them on.  If you do detect these warning signs, should you add to your quote?  Or turn down the project altogether?
• Your current workload. How busy are you?  If you’re (a little too) available this month, maybe you consider knocking a bit off your quote to make sure you secure the contract.  If you already have a lot on your plate, maybe you raise the quote and let the new project compete for your time.

I admit it.  Sometimes I end up with some form of regret.  After giving my proposal, if doesn’t respond (despite a follow up contact), I can safely assume my quote was too high.  Most of the time, this is fine.  It means my number was so high it wouldn’t be worth negotiating.  Not the right client for me.  But sometimes, My quote may have been pushing it and I lost out on work that I could have done for a bit less.  Oh well.

Sometimes the new client instantly accepts my proposal.  Great, new work.  But I can’t help but think, did I quote too low?  No sense in killing yourself over this one.  Even if they are getting a bargain (in their mind), I know I’m personally comfortable with the number, otherwise I would have never sent off that proposal.

Every now and then, I hit the sweet spot.  The proposal keeps the potential new client interested, asking questions.  Perhaps there’s a bit of a negotiation (in price, scope, or time), and we settle on a comfortable deal for both parties.  This leaves me with no regrets or second guessing.