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Often it’s hard to negotiate app development costs as founders often are not quite sure about features,
therefore leaving developers giving poor estimates!
Proper negotiations can only happen when functionality is absolutely clear. The ideal time to negotiate is
after wireframes and user stories are written out. Unsure how to design a wireframe or list our technical
user stories? Then hire a CTO or Product Manager!
If it’s your first time building a digital product, I recommend you hire a experienced product manager or
CTO who can help you document your requirements. Explain the project to him/her and let him build a
documentation (ideally working in with designer) to b clear on requirement.
Negotiate on how many resources you will be allocated and hours of those resources for project! This is
the best way to compare quotes!
Also make sure to negotiate in a QA resource! Nothing works perfectly at first when developed. It takes
time and updates in order for it to settle down. Its important to have a quality assurance resource to
spot out the problems (especially if developing overseas!).
Pay half upfront and half on completion: Trust is an important factor when hiring someone but it never
hurts to have insurance. Start negotiations off with payment terms. Suggest paying half of the amount in
advance and remaining end of month.
Beware: Fixed price is not normal in custom web development: The price of an app depends on its
functionality. The more complex you want your app to be the more money it’ll require in order to work.
When building very innovative ideas remember fixed price is not the norm
One of the major concerns of every buyer, how long will it work like it’s supposed to? That’s why you
need to take the warranty into consideration too. Be clear if things break who will be responsible?
Also in web development maintenance is absolutely essential! It is something that is pretty common
these days and is done on a monthly or quarterly basis. The question that arises here is the length of the
maintenance deal and the hourly payment rate which you need to be clear on!
Above are some high level pointers you need to absolutely include in your web development
negotiations! If you want someone to be part of that conversation with you, please feel free to yell out, as
we will be more than happy to help you seal a fair app development contract!