How to set a price for the development of electronic equipment?

Question

Business Informatics

Help! I don’t understand anything in pricing, I can’t understand how to set a price for the development of equipment, I googled and nothing if you can help with examples I will be very happy, it doesn’t matter the subject of electronic equipment, I want to understand how others make up the price for work in order to make it myself and argue with the customer certain expenses

Answer 1

There are three main benchmarks to use when determining the cost:
1. cost - materials, resources, contractors, own labor costs, etc.
2. the benefit that the customer receives;
3. the cost of a similar product / service from competitors.
The cost should not be lower than 1, otherwise it is not a business, but patronage.
The cost must be proportionate to 2, otherwise the customer will receive much more than the contractor.
The cost must be proportionate to 3, otherwise it will look strange on both sides.
Something like this

Answer 2

The cost depends only on the cost of your working time and on its quantity.
Estimate the amount of your working time, how much it will take for the project - this is the most difficult thing.
Estimate the cost of your working time - this is the money that you will refuse (by not participating in other projects while you are busy with this project).
+ materials at the expense of the customer, of course.
This is the bottom bar. So to say "cost" for you.
The upper bar - depends on your impudence (your psychological skills) and the capabilities of the customer. In particular, other offers on the labor market can be taken into account here.
The lower bar can be lowered if the project is extremely interesting and / or professionally promising for you personally.
PS:
I don’t know about you, but my time estimates are too optimistic, so I always multiply my estimate by 2 or 3. This is closer to reality.