@RAD, following the chain of discussions since my last comment, i see youve come to the same conclusion (its about the pitch, not the pricing). Onto the gist of this argument, It is not immoral to ask for 200 million if you think you can justify it and get away with it, it is just a business model. (some go for volumes, some for variety). I think arguing about the cost again is simplifying things. Debian costs nothing, Windows costs something, yet many high end clients will ignore this and go for value (or percieved value) irrespective of whether it is real or not. Cheers and enjoy your weekend. On Sat, Jan 30, 2010 at 3:40 PM, Phares Kariuki <pkariuki@gmail.com> wrote:
Two things...
1. Nokia asks for quote. Developer decides to ignore contents of RFP, and goes ahead to quote for coding the moon and the sky, instead of a simple app.... Cannot follow instructions... 2. Plain greed. Thing is, for you to be an organisation of Nokia's size, you need to justify everything with ROI... ICT infrastructure, everything. The reason people are rich is not because they spend carelessly, it's many times because they know where *not* to put their money. Let me illustrate. If I was being charged 200M by a rogue coder to do say a simple tool for my ERP, why not go to the vendor directly and poach a coder? you have to realize, 200M is roughly 3M USD. How do you justify that? Salary? In a ten man team? Seriously? Say you pay each coder 200k and will have another 3 working in tandem during the night shift for a 2 year period to support the application... (8 hour shifts each, hence 24 hr support - I'm being generous with pay)... You will spend, 2.6m a month, during the development phase... Say you have a 2 year SLA, you have spent 62.4 Million on salaries. Additionally, you have a CEO, CFO, CTO each at say 500k... 36M (over a 2 year period). The total is 98.4 Million. Buy each staff member a Macbook Pro. Only quality, right? 4.8 Million... 103.2 Million spent so far... Rent? Quality plush offices furnished... 6 M on offices & furniture... We are at 109.2. Say we pay 300k rent + internet... we will be at 7.2m... .116.4... We are assuming that this team has no offices, no work place from before etc... You still make almost a shilling for every shilling put in... Few investments are this lucrative.... Wouldn't it be easier for Nokia to do this for themselves? It makes a mokery of the whole theory behind outsourcing. 200M is a *large* amount of money, esp in Kenya....Even if the coder tries to deliver the moon and the sky... it's still ludicrous... as shown...
On Sat, Jan 30, 2010 at 2:46 PM, maina martin <martinafrique@gmail.com>wrote:
@ RAD
If you want 200million out of Nokia you had better justify,and justify very well how Nokia will get *value for their money * on the above qoute very simple
For my universal TV/DVD remote phone application,
instead of upfront 200 million ,we have it as a going concern. My product is soley used only on nokia phones 1. agree that for every Nokia phone that downloads or is installed my application I get 1% of the value of the make of phone
of which ofcourse you must be a really big short for them to accept.
but assuming they would do.
On Fri, Jan 29, 2010 at 4:22 PM, Rad! <conradakunga@gmail.com> wrote:
Then I dare say the challenge was in the way you pitched your product.
People, trust me on this one. *Everyone* (from Nokia right down to the humble sole proprietor) is looking for value for money. This is *not*the same thing is saying low price.
I gave some examples above on how approach Nokia.
BTW in one of the hats i wear I evaluate proposals for systems. If you think putting a single sine item of Software: 200,000,000 Kshs Only on a one page quotation will get past someone like me you will be surprised.
If you want 200million out of Nokia you had better justify,and justify very well how Nokia will get *value for their money*. See above some of what i suggested.
On Fri, Jan 29, 2010 at 4:12 PM, maina martin <martinafrique@gmail.com>wrote:
charging millions is not the main issue its getting what u ought to get without being taken advatage of.
I ONCE qouted 50k for POS another firm qouted 120k and got it yet what I had was exact
this was 2005 later the pharmacist told me that no serious POS can cost that!!!!!
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