I have friend running his own consulting company who is thinking about
giving xp a try since they are almost doing it naturally. they code
in pairs, do tdd, and their customers come in on site a few times a
week.
his question he has for me is that they've been doing hourly rates,
but he wonders if there is a charging system that fits more with xp.
my suggestion is to maybe charge for each feature, maybe put a price
on each unițwhich would give clients a realistic choice because each
feature would have a cost attached.
anyhow, I am assuming there are several consultants lurking on this
list, so what kind of pricing system do you guys use?
hi all, I have friend running his own consulting company who is thinking about giving xp a try since they are almost doing it naturally. they code in pairs,...
Alistair Cockburn has a nice overview over different contract models in an Agile context: http://alistair.cockburn.us/index.php/Agile_contracts Cheers, Ilja...
Dear James, Hourly rates are a simple, accountable, and well-understood way of charging for XP-related services. I am generally satisfied with the results when...
Coupele of very interesting responses. Can I explore a couple of them a little more? (comments below) ... charging ... when I ... consultant's ... pricing. ......
Dear Simon, I do love synchronicity. I was reading the McKinsey Quarterly (http://www.mckinseyquarterly.com/Information_Technology/Applications/Eight_ ...
... Wow, Kent. I *am* impressed with your courage. My gut reaction is a fear that charging only for "successfully trained students" might misalign my...
Hi George, ... One thing you can easily do is try a hybrid model. Set your training fee to 90% of the usual and a 10% bonus to be contingent on a later ...
... model ... Good idea, but I'm still unclear as to how you evaluate effectiveness in an unambiguous form that can be expressed contractually? And over what...
The other part that needs trust is that you have an asymmetric relationship with most any company. Their training budget is incidental to their total turnover,...
... I would fear that this model motivates my client to encourage its people to make it look like they don't do TDD, in order to lower the price. In what...
This is getting interesting... I like the courage others have in pricing a feature. I have avoided this my entire adult life after a very bad experience of...
Hello, captainkirk16384. On Tuesday, December 11, 2007, at 9:44:25 ... Yes. As I understand XP, it is important for the business people to consider the value...
... It is a little more nuanced than this. I want one click ordering and that may add value to me of (say) $100,000 a year. I want to capture as much of that...
Joe, My experience is that 19 out of 20 people I do business with are honest and could be trusted with a cooperative pay-for-value contract. The other 1 seems...
... I'd like to make sure I'm reading this correctly...are you saying that no visible conflict is a warning sign? I think it might be the case that there's...
Pat, Exactly--I have learned to regard the lack of visible conflict as a warning sign that trust is not present. When I'm aware of this I can work to build ...
... Joe, that was my initial thought. But since I'm willing to offer a money-back guarantee if not satisfied, I don't think that's really what bothers me. ...
Hi, James! ... I'm strictly a by-the-hour guy for most work, although if I'm particularly impressed with a client I'll sometimes take a piece of the action in...
... pricing Indeed. And it was not altogether successful. One of the key things about making this model work is informing the client before you start ...
... things ... start ... requirement ... environment, ... of ... to ... of the ... of ... make it ... altogether and ... time. ... theirs. ... before ... ...
Hi Simon, I have responded to some of your points below... ... The key here is to keep stories very small. Smaller stories are easier to estimate and don't...
Hi Tobias, Hope you don't mind if I respond to both your comments and those of the other posts in the same place:) This thread has been very interesting for...
Hi Simon, You are right. There is essentially no difference between price-per-feature and fixed price. Except this: the fixed prices are much, much smaller....
... per-feature and fixed price. Except this: the fixed prices are much, much smaller. I am all in favor of fixing prices ahead of time, the difficulty is...
Simon, Others have answered much of your question so I'll just say that my reputation doesn't seem to afford me any special privileges as a business person....
Ičve been developing applications on a price per feature basis for a number of years now. There are a few experiences I can share: 1. Obviously you need to...
Peter, you charge extra when the story is bigger than you'd expected. When a story is half as much work as you estimated, do you give the customer the...
... I think it's foolhardy to change your pricing model before you establish a long history of velocity measurements. I would go with time and materials until...