Software is more of a service than a product. As you are probably aware, it is an intangible, intellectual property. However, the costs involved in developing the product is based mainly on the cost of the analyst and programmers involved in the project. The cost of every program we develop is based on per programming day charge. We have 3 types of development contracts for our software:
I. Product Price
We have a number of products such as:
Our software products have a fixed price depending on the core modules and the optional modules you choose. The price includes analysis of requirements, design of modified software, custom vouchers & reports to meet your needs, customized software development, installation, onsite implementation, on-site training, manual, and one year warrantee. Modifications beyond the functions we already have in our package will cost the client 5,000 baht per man day.
II. Project Outsourcing
This is similar to the package development, except we are developing for a new business. Here the client gives us an entire development project and wants us to do the analysis, design, development, and implementation. Usually, we do not give the source code to the client in this case, since nearly half of the components are from our software modules developed previously (reused code). Here we charge according to the amount of time taken to develop the program. To give you an idea of our pricing scheme, a simple way to estimate your cost may be to divide your project into fill-in forms and summary reports. An average form takes 5 days to develop and an average report takes 1 day to make. Thus, an average project consisting of 8 forms and 20 reports takes approximately 60 programming days. We charge a programming day rate of 5,000 baht. Thus, an average-sized development project will cost 300,000 baht. If we already have a similar product to your requirement, the price will be considerably lower, since we will charge based on the package price plus customization charges (also based on programmer day rate).
III. On-Site Development
Here our client requests us to develop the software for them at their site according to their terms, we just provide the expertise and human resources. In this case, the source code will belong to the client and we do not use any of our previous software components. Here we charge based on a person-day rate for the person you request. For a programmer this is usually 5,000 baht per day and for analysts it is 8,000 baht.
Usual Terms of Payment
Our payment terms vary for each contract, but is typically made up of 5 payments installments:
1. 25% to initiate the contract
2. 10% when analysis and design are completed
3. 25% when program is developed and first demonstrated
4. 25% when program is delivered and implementation (training and use) started
5. 15% when all the work is completed and fully implemented
Price for Changes
When a user has a change request to the requirements or the design of the software such as due to additional work, we provide a written quotation for the additional work based on the number of person-days required for the work. If this is approved, we will make the requested change and bill you accordingly. Generally, though, we are quite flexible about user changes. As long as the changes are within reason we usually do not make a change request. However, if it is an added module, we are compelled to send the quotation.