That's an intriguing way of pricing - I hadn't run into it before but it makes a lot of sense (cents?)

The biggest problem with that approach (IMHO) is that you rarely get asked to write a program that REPLACES people - makes their life easier, perhaps by automating reporting and by reducing multiple data entry, but not actually do their work. And many times the important benefits of the program are only visible to the managers at the top of the pyramid. Right now I'm writing a proposal for a program that will replace a lot of WORD docs and EXCEL spreadsheets and hand-written job orders, hopefully reducing confusion and allowing better tracking of products and procedures. But one of the points of discussion is that the shop personnel, many of whom are barely literate in Spanish or Vietnamese, are able to check the 'process completed' box on the (presently used) paper workorder attached to the product but won't be able to bring up the workorder on the computer to check the same box. We may actually continue using the paper workorders for the foreseeable future, and let the shipping folks enter this data. Which actually ADDS to their workload from the present perspective. This does NOT mean I'll write the module for negative money, however < bg >.

Just my $.02 US,
Barbara


>Dave,
>
>I'm just getting to this thread. I've never done an independent contract, but Jim Duffy, in the course of the class I took from him, said something interesting that you don't usually hear.
>
>He said that he prices based on the amount of work the computerized system will replace. If the computerized system replaces 3 bookkeepers who work for a year at $32,000 apiece then say anything under $96,000 will still be cost-effective for the customer. Then he decides whether he can do the project for under $96,000 and still make money. If not, he doesn't take the contract.
>
>It's one more point of view to add to your mix of ideas. As I said, I've never done consulting (yet!).