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330.000 $ for a business software?

Discussion in 'eCommerce' started by Ectoplasm, Feb 10, 2020.

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  1. #1
    Someone told me he needs / wants a software programmed from scratch (no other way) and him was offered one for about 330.000 $ for his business to code it.

    I would think that business does not differ that much from other usual businesses with tasks, work like usual.

    I do not have any idea of software and prices but that sounds unbelievable. Can it - generally - be like that, 330.000 for software?
     
    Ectoplasm, Feb 10, 2020 IP
  2. sarahk

    sarahk iTamer Staff

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    #2
    About 15 years ago I worked for a company that sold software at USD100/k per seat per year and THEN we had teams customising the software.
    I'm pretty sure those companies thought their CRM requirements weren't that special either.

    I've done BA work for small companies where they've whined at the start of the day about having to assemble a team of 10 senior managers when their company was like any other company. By morning tea we'd have established at least one set of business rules I'd never come across before.

    That said, a more recent project was for a company that wanted world domination and had a really expensive site built only for them to lose their nerve and get left with a white elephant.

    Without knowing anything about your friend's business I'd recommend they start with something basic that they can get up and running quickly and then customise later when they need more functionality.
     
    sarahk, Feb 10, 2020 IP
  3. Ectoplasm

    Ectoplasm Greenhorn

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    #3
    What does "USD100/k per seat" mean?

    So modifying / adapting an already existing software, e.g. Drupal, or a shop system or what ever might not be possible or useful (instead of paying for 330.000 $) for a few companies or only a very few?

    Sorry, what does that mean? I cannot understand the context. What is BA work?

    Thank you! With a software already available?
     
    Ectoplasm, Feb 10, 2020 IP
  4. Andrii Ozemko

    Andrii Ozemko Member

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    #4
    I would say this price can be reasonable. Let's imagine you need at least 3 developers (DEV) and 1 quality analytic (QA). DEV's average salary is about 3000$. QA's average salary is about 1500$. So, you need to pay 10500$ each month. That means 105000$ per year. Business software development can take 1-2 years (or more). And this is only a salary. So, 330.000 $ doesn't look too much, but it depends on details, of course. I would suggest to get some more offers and compare prices before buying.
     
    Andrii Ozemko, Feb 11, 2020 IP
  5. sarahk

    sarahk iTamer Staff

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    #5
    Every user is a seat, so every time the add an employee as a user my company was paid USD100k, and at the end of the year they got to do it again.

    It's a common pricing mechanism in America.
    it all depends on the company and if they can DIY any of it.

    business analyst

    absolutely. There are loads of systems, it's a matter of trial and error. Time is money, if your friend has the time and patience they might find an existing product that does the job.

    Key considerations include
    • Can they export their data if they outgrow the system
    • Can they modify the system
    • Are there integrations with other systems - such as an accounting system like xero or myob
    • How many users can they add
     
    sarahk, Feb 11, 2020 IP
  6. Ectoplasm

    Ectoplasm Greenhorn

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    #6
    So to be able to sensefully compoare the offers one has to write down what exactly the software should be able to do. I guess, doing this, describing what one really wants, needs is not that easy respectively there will be many things one does not know of at all.

    Ah, so the same like Andrii says.

    And / or one that mostly of it does needed and that can be modified, guess.

    So extremely important options. If only one of them missess I would consider the software as unusable / not use it. Or perhaps one has to pay much money later to "correct" that (by using another software).
     
    Ectoplasm, Feb 11, 2020 IP