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

    • 990 posts
    January 24, 2008 9:38 AM EST
    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."

    • 2 posts
    January 24, 2008 8:31 AM EST
    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.
    • 2 posts
    January 25, 2008 8:36 AM EST
    Thanks to all for your comments. I appreciate them!
    • 731 posts
    January 24, 2008 1:29 PM EST
    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!

    • 14 posts
    January 24, 2008 10:47 PM EST
    Charge a fee which you will offset against the work when they do business with you.