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Do you charge to do a bid or respond to an RFP?

 
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PixelHappyWeb

posts: 2

Jan 24, 2008 2:31 PM ET    Quote  Report Abuse
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I am a web designer.  I am usually talking with prospective clients about ways to improve their websites, and I usually give a fairly detailed written analysis and a quote before they hire me. I believe that generally they are only considering a very short list of companies, and in some cases, I am the only contender. 
 
A larger web design company told me that they charge for such an analysis at their regular hourly rate, but waive the fee if the client choses them. If not, they are free to take the analysis elsewhere to have the work done.
 
The smartest thing to do is probably to do a less detailed analysis up front and not charge for it, but I have won clients even though I was charging more, simply based on the quality of my proposal. 
 
So is this an example of "giving away the product for free to encourage sales" or am I leaving money on the table?
 
I`d love some feedback.
 
Thanks.
 
 
patentandtrademark

posts: 1332

Jan 24, 2008 3:38 PM ET    Quote  Report Abuse
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charge for an analysis at your regular hourly rate, and waive the fee if the client choses you.

-------------------------

James Lindon, Ph.D. Patent Attorney
Lindon & Lindon, LLC
Cleveland, Ohio
Patents, Trademarks, Copyrights, Pharmacy Law, Litigation
[this is not legal advice - provided for discussion only]
Intellectual Property for the Individual and Small Business: Identify, Protect, Enforce, Defend.
"Fools rush in where angels fear to tread."
http://www.LindonLaw.com
KJC

posts: 69

Jan 24, 2008 4:02 PM ET    Quote  Report Abuse
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charge for an analysis at your regular hourly rate, and waive the fee if the client choses you.
 
Looks like a pretty good solution to me!
Nuevolution

posts: 1223

Jan 24, 2008 7:29 PM ET    Quote  Report Abuse
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PixelHappy,
Here is what I do.
I usually provide the customer with a proposal but it is a basic proposal. I do not include technical specs, Hours of development, functionality, and first draft (mock up).
The analysis is included with the price, and I do not send them a full Proposal until they give me a down payment to start developing. Once I get a down payment then I give them a full blown Proposal, that outlines functionality, specifications, Marketing approach and anything that the customer needs to put into their marketing plan. I outline everything from them (niche market, demographics and so forth)



-------------------------

Edgar Monroy
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!
http://www.nuevolution.net
Jan 24, 2008 8:39 PM ET    Quote  Report Abuse
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You always have the risk of offering information to get the sale and then they use that information to get a better price elsewhere. It`s all about knowing who you are selling to. You have to differentiate yourself from the competition. It may be something in the service that you can  provide after the sale to keep them from going anywhere else.


jack




PeterCPA

posts: 28

Jan 25, 2008 4:47 AM ET    Quote  Report Abuse
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Charge a fee which you will offset against the work when they do business with you.
PixelHappyWeb

posts: 2

Jan 25, 2008 2:36 PM ET    Quote  Report Abuse
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Thanks to all for your comments. I appreciate them!
 
Catherine
Jan 26, 2008 7:47 PM ET    Quote  Report Abuse
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I agree with Jack.  In my business, I HAVE to give up creative and strategy.  Only the big firms with even bigger clients actually charge to put together proposals.  There`s always a risk and you can ask individuals to sign a short agreement stating that these ideas/strategies are yours but there`s no guarantee on intellectual property such as this.  It`s a catch for sure but can be worth the risk.
 
Jennifer
creativelyse

posts: 75

Jan 29, 2008 4:03 PM ET    Quote  Report Abuse
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I don`t write up anything lengthy so I don`t charge for that at all. I`m sure it`s different for others in different industries to spend valuable time on such a proposal though.
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