How to compare software quotes: two prices for different work cannot be compared

What should you look at first when you compare software quotes?

When you compare software quotes, look at scope first, not price. One agency lists six named pages, a contact form and a CRM connection. Another writes "company website" and a number. Those two numbers are not prices for the same thing, and two prices for different work cannot be compared.

Most people line up three quotes and pick the middle one. That assumes all three firms priced the same job, which is rarely true. One includes design, one does not. One adds the first year of hosting, one never mentions it. One promises bug fixes after launch, one is silent. This guide shows how we bring quotes onto the same footing. You can apply it to every quote on your desk, including ours.

What should a good software quote contain?

A good software quote states at least six things clearly: scope, price, date, definition of done, ownership and post-launch terms. Any gap turns into an argument, an extra invoice or a delay later.

• Scope: which pages, screens, features and integrations, named and counted.
• Out of scope: what the price does not include. Good quotes write this down too.
• Price and payment plan: the total, whether tax is included, and what is paid at which stage.
• Date: a start date and an end date. A day, not "roughly two months".
• Definition of done: checkable items that say when the work counts as finished.
• Ownership: whose name the domain, server, code repository and accounts are in.
• After launch: how long bugs are fixed for free, whether maintenance is paid, how you get support.

The definition of done is the item most often missing. We explain why it belongs on day one in what is a definition of done. Length says nothing about quality. A forty-page proposal without a single date tells you less than one clear page. We write our quotes on one page.

Once the table is filled in, the cheapest quote usually turns out to be the one that lists the fewest items. In the example, quote B is cheaper because it contains less work, and the gaps will appear later. Quote C puts the domain and server in the agency's name, which deserves attention whatever the price. We explain why in who should own your domain.

What hidden costs hide in software quotes?

Hidden costs are the items a project needs but the quote does not mention. They are rarely hidden on purpose. Usually nobody asked. The result is the same: the invoice grows after work starts.

• Hosting and domain: renewed every year. Ask for the second-year price.
• Licences: paid themes, plugins, fonts, maps, SMS. List monthly and yearly fees separately.
• Third-party fees: payment provider commission, e-invoicing provider, app store developer accounts.
• Content: who writes the copy, supplies the photos and handles translation.
• Integrations: accounting, ERP or CRM links left for "later" are usually the biggest extra.
• Revisions: how many design rounds are included, and how extra rounds are priced.
• Exit costs: whether you pay to receive the code, accounts and data if you part ways.

Our guide to what website cost depends on shows which of these moves the budget most.

What ten questions should you ask every firm?

Ask these ten questions to turn everything the quote leaves out into writing. Get the answers by email. A promise made on the phone is not remembered on delivery day.

1. What is included in this price, and what is not?
2. Which items will we check to agree the work is done?
3. What is the end date, and what happens if it slips?
4. Whose name will the domain, server and code repository be in?
5. For how long, and on what terms, do you fix bugs after launch?
6. How are scope changes priced and approved?
7. Is the person I talk to the person who does the work, or is part of it subcontracted?
8. Where and how often will I see progress?
9. Which monthly or yearly costs are not in this quote?
10. If we stop working together, what do I receive, how quickly and at what cost?

Good answers are short: "yes, these items", "on this date", "in your name". Long, general, undated answers are also an answer.

What are the red flags in a software quote?

A red flag is a sign that the quote will cause trouble later. Not always a reason to walk away, but always worth a written question.

• One-line scope: nothing beyond "online store" or "mobile app".
• A date range: "6 to 10 weeks", with nothing about what happens past the upper end.
• Most of the money up front: payments are not tied to stages.
• Accounts in the agency's name: domain, server or store accounts opened for them, not you.
• No code handover: no source code or repository access.
• "Everything included": without a list of what everything is.
• A price without questions: a firm figure after a five-minute call.

Why can the cheapest quote end up costing more?

The cheapest quote can cost more because the missing items come back as extra invoices, delays or a rewrite. Many stalled projects start with a quote that never wrote down scope or done. That does not make the most expensive quote the best. The right question is not "which is cheapest" but "which leaves the least uncertainty". If two quotes differ by half, ask why, line by line. A firm that cannot explain its own price does not fully know it.

How does RadKod write a quote?

We write a one-page quote with scope, price, date and what is out of scope. The definition of done is written together right after and signed, and that is the day work starts. The domain, server and code repository are in your name from day one. Bugs found in the 30 days after delivery are fixed free of charge. The person you talk to is the person who writes the code.

The full process is on how we work, and custom software shows what we look at on a bespoke build. To put your quotes next to ours, use get a quote.