>Hello everyone,
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>Well, I see that my inquiry has has led to some interesting dialog..:) I do like the idea of value based pricing. The problem that I find with many clients is that they view programmers as technicians only. They don't realize that a programmer needs to analyze the inner workings of their business operations, to be able to design the solution which they seek.
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>I can't recall at least one client, where I have not had to be extremely creative in developing an application that meets their needs. In the best case scenario, the client will present me with a written spec sheet that lays out the basic plan of what they require. This is usually limited to a list of data fields and command buttons (hardly a workable design plan). In the worst case scenario (and most frequent case), the client will just tell me that they want a database that will accomplish certain tasks (with no written specs). I've also found that there is an underlying assumption that I should have unlimited knowledge about their particular industry and every other industry on this planet. Last year, I had to consult with a financial expert and calculus professor in order to design a particular piece of financial software. The client promised to provide me with all of the financial formulas, but in the end he had no clue how to design the calculations.
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>My point is that we as programmers/developers are much more than professional coders. We research, plan, and create innovative designs which provide solutions. Programming is a synergy, in which the end value is much more than the sum total of hours spent building the software. It's just like being an artist. The artist does not price his/her paintings based on how many hours he/she worked on it, or the cost of paint. The value is in the end result or the overall pleasure people get from viewing the painting .
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>Well, I didn't mean to get philosophical here, but I really do see the value in value based pricing. I think it makes more sense to get paid for the value of a software solution, because there are too many intangibles that go into creating a piece of software. Can we really put an hourly rate on the brainstorming and creative process that goes into making a piece of software? I think not.
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>Ok, maybe I'm being an idealist and a little unrealistic...:) I know that most clients will always want to quantify everything into an itemized list of what was done and how long it took to complete each step. Either that, or they will want to bargain hunt and find the programmer who will build their software for the lowest flat rate cost. Sometimes I really do feel taken advantage of. I take a lot of pride in building quality software, but I always seem to end up with little money compared to the value received by the client.
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>Dave..:)

One other approach, and this touches on Mr Baker's #1 (7/26 2:33:14), is to hook up with another company which does the analytical, functional spec and client interface work leaving you to the coding. I do this and it allows me to be simply the "programmer" which suits me fine. I get too frustrated at times with client expectations, many of which have been explained well here by others. I prefer to avoid that hassle and let someone else handle it.

Steve