Ask HN: How do I bill my client?

[devj]

The prospective client is creating a product and have decided to outsource their product development.

As a company, we decided to give it a try so that we can fund our own product which is under active development. Having said that, we are unaware of the economics of project development as we all have background in SaaS product companies.

I have come to the conclusion that we should charge them on manpower basis so that we don't get slowed down i.e $x per developer per month + $y where x is subjective to skills and experience and y = cloud infrastructure cost.

This is in contrary to the hourly task based approach.

Please advise.

[phelmig]

I have great experience with agreeing on the features to be delivered in a two-week sprint. You provide and estimate in hours and have a hourly rate for your work. This allows you a) to outperform your estimate and gives b) your customer some planning security. If you screw up, a the content of a two week sprint won't brake your neck. If you outperform you have more time for your project.

Additionally you get rid of the discussion if dev a is worth 1.2456 more than dev b.

Infrastructure is cost you bill additionally.

[brudgers]

Add z, profit, to your calculation on top of your rates.

Monthly is good, weekly might be more flexible for the client without getting into task tracking.