After a Web firm has built up a decent reputation and a good portfolio of sites to show potential clients, the number of inquiries regarding work can grow exponentially. As the owner of a Web firm and its primary project manager, I spend just as much time sorting out which projects I feel my company should go forward with and responding to inquiries as I do participating in the building of the sites.
Doing my homework up front can save my company as much money as possible in the following ways:
Bidding projects is something that grows much easier with experience. One gets used to sizing up clients, requirements, and internal Web firm situations that make a certain project easier to handle than another. You should know how much your graphic designer, programmers, and support staff costs per hour. Also, don't forget the firm itself. Every firm must make so much an hour to support rent, telephone costs, equipment costs, advertising costs, and administrative costs. Software costs money, as well as the paper that goes in the copier. The project manager needs to be aware of what the firm itself costs per hour to operate. This is all determined by overhead.
My firm has operated out of my home for several years. Eventually, this may need to change, and growth is requiring us to look harder at that decision. However, I have always felt that this was an incredible plus because I could offer highly competitive bids and remain very profitable because of our lack of overhead. Most of the highly talented people working for me can work remotely at their homes, although they are all local and available for staff meetings and project meetings. It has been the best of all worlds to work with talented and motivated professionals who can produce excellent work out of their home offices. I do not need to ask clients to pay for my marble office foyer. In a sense, during the life of my company, clients have only had to pay for labor costs incurred on their own Web site, my own personal equipment, and one administrative person who comes in, pays bills, files, does errands, and facilitates customer service a few days a week.
However, there are many successful Web firm models that remain profitable and operate within an office environment to facilitate more projects at one time. A firm like this may also be able to bid highly competitively because of the sheer volume of work that is being done. An experienced staff reacting directly after a client's phone call is able to cut down on the unnecessary costs for the firm, which can be found particularly in design work when a graphic designer is going in one direction and needs to stop because the client wants something else. This is a commonplace scenario, and no matter how good a project manager is, there will always be a certain amount of effort duplication that can't be controlled.
So, keeping in mind the firm's hourly overhead, the project manager must consider that the firm's graphic designer costs $30/hour. The hardcore programmer, who does the databases and scripts that enable e-commerce functionality, costs $50/hour. The HTML intern may cost $10 an hour. However, someone who costs $30/hour, be it a senior HTML writer or the project manager, is going to need to review the intern's work before it goes out. When the project manager evaluates the project requirements and compares them to other similar projects, he or she roughly knows how many hours are involved and what that is going to cost the client.
Beyond covering costs and evaluating any pitfalls that will stem from a particular client-firm relationship, I always advise new Webmasters to charge enough to be respected. If the client feels they contracted you extremely cheaply, they may begin to wonder why you were so inexpensive in comparison to everyone else, and your time isn't valued as highly by the client as it should be. Strange, but true. On the other hand, the Web firm also needs to charge fairly. If there's a new Windows NT programmer on board and management knows there's a learning curve involved, the firm bears the burden of the learning curve, not the client. Some new fledgling Web firms charge outrageous amounts for shoddy work, just because the perception is that a Web site should cost a lot of money and they see that the client isn't necessarily Web savvy. Buyer beware! I usually end up taking care of these clients, once they realize what has happened. From my perspective, client-firm relationships are easy because all one has to do is treat the client fairly and they are appreciative of the services they have received.
a) | A small business has called your firm about a Web site. They have been in business for ten years and feel that it is time for a Web presence. They do not know exactly what they want to do on the Web, except that their competitors are there, and that fact is making them nervous. What would you do to qualify this client? What do you want to know about the company? How long will you discuss this project before you ask for some sort of commitment? What kinds of requirements would you ask for from the client to address any production concerns? ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ |
b) | A group of entrepreneurs, who would be involved in facilitating a new business venture part time at first, approach your Web firm regarding a viable Web site project. You know that they would be paying for this project out of their own pockets. What are your concerns? What questions would you ask them? What type of structure would you set up to circumvent any of the potential problems you have identified? ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ |
c) | A large, multi-billion-dollar corporation asks you to submit a bid regarding a large body of work. This could easily tie your firm up for six months. What are the pitfalls of such an arrangement? What are the benefits? ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ |
a) | Compose a questionnaire for the client in Lab 10.1.1a. ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ |
b) | Compose a questionnaire for the client in Lab 10.1.1b. ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ |
c) | Compose a questionnaire for the client in Lab 10.1.1c. ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ __________________________________________________________ __________________________________________________________ |
a) | An owner-operated business contacts you regarding a Web site. Upon meeting with the owner, a few employees make several selfdeprecating remarks about ill-fated attempts at other types of projects. The firm has only recently been funded and has been in operation six months. What are your concerns in this situation regarding the firm's ability to meet deadlines and keep the project moving? ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ __________________________________________________________ __________________________________________________________ __________________________________________________________ |
b) | A large corporation contacts you regarding a Web site. There seem to be a great many people on the project team with differing opinions. The corporation is motivated to move forward on the project as the home office in London is now requiring all of the subsidiaries to be on-line. They are quite open about their budget and the fact that they are interviewing several Web firms. What are your concerns in working with this group? __________________________________________________________ __________________________________________________________ __________________________________________________________ |
a) | Say you've decided to move forward with the clients described in Lab 10.1.3. You would like to document your discussions regarding site hierarchy, functionality, deadlines, site graphical and written presentation, and any other requirements that the potential client may have mentioned. What purpose could this document serve? __________________________________________________________ __________________________________________________________ __________________________________________________________ |
b) | For the project mentioned in Lab 10.1.4, write a one-page project profile. You may create your own set of requirements, reflecting a fictitious business plan. __________________________________________________________ __________________________________________________________ __________________________________________________________ |
a) | Admittedly, 90% of new Web site builds are bid on a flat bid basis (the project manager determines the total project cost, the tasks covered by the bid, and the schedule of deliverables), and most clients are more comfortable with this. However, can you think of a scenario in which it is better for all parties to bid Web development based on an hourly rate? __________________________________________________________ __________________________________________________________ __________________________________________________________ |
b) | If you are unsure of some of the project requirement modules, but the client wants to get moving right away, what are some options that could be available to you in bidding the project? __________________________________________________________ __________________________________________________________ __________________________________________________________ |
This section gives you some suggested answers to the questions in Lab 10.1 with discussion related to those answers. Please post any alternative answers to these questions at the companion Web site for this book, located at http://www.phptr.com/phptrinteractive.
a) | A small business has called your firm about a Web site. They have been in business for ten years and feel that it is time for a Web presence. They do not know exactly what they want to do on the Web, except that their competitors are there, and that fact is making them nervous. What would you do to qualify this client? What do you want to know about the company? How long will you discuss this project before you ask for some sort of commitment? What kinds of requirements would you ask for from the client to address any production concerns? ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ |
Answer: | My first concern is that this in fact may be a potential client who has not made up their mind regarding whether they truly want a Web site. Their goals are not specific. It could be that the owner just saw his competitor's truck go by with a URL painted on it, and this is now the topic of the morning. I'm concerned that this client is calling to pick my brain for the finer points and then pursue having a high school kid build the site. They may not really understand the Web and how a professional presence may really enhance their company's marketing message. I start off by citing a few case studies of industry-related firms, which have done well on the Web and assess the client response. If it's vague, I offer to fax a generic questionnaire to help the company to further define its Web project, suggest that they fill it out, and contact me should they wish to move forward or have any questions. If the client truly is interested, the conversation progresses from there to when I would be available to sit down and discuss it. Before I make the appointment, however, I do make sure that the client is aware of my rates and that if we come out, we're expecting that the company is ready to move and contract with us, not to build right away, but to reserve time in our programming schedule. This puts structure into the projectright away. If all goes well, the potential client knows that we would be expecting to firm things up while at the meeting. We encourage potential clients to check out our portfolio ahead of meeting. Thus, when a price is quoted for particular project, our credibility is already set. Before I meet with this potential client, I want to be sure that they have done their homework, know my firm, know our work, and know the rates so that when we sit down and meet, there should be no resistance to contracting. This cuts down on the "We'll get back to you" scenario. I find that if there isn't a good reason why a deposit check can't be cut immediately or within the week, chances are that I've wasted my time. Deposit checks are a good litmus test, because I often find that at these meetings, if there isn't serious intent, potential clients ask me to do research for them or do other kinds of freebies, under the guise that they are considering us for their Web site. I make it clear at this point that it sounds like what they really need is consulting, and my firm does that as well, and inform them of our rate for that type of work. The point is, the only thing that I have to sell is time. My firm does very good work with its time. But I can't allow my own time as a project manager to be wasted prospecting with companies that either aren't serious or want to play games, getting free consultative work under the guise of contracting us for a Web site. Most of the time, people don't even realize that they're doing this. It's not a conscious agenda item with them to bring us in, pick our brains, and send us packing. It's just that they're not committed to the idea or quite organized yet, and the savvy project manager knows how much time to spend with this situation. Even if we decide to move forward, I always require a signed work order, deposit check, and a commitment to get any and all deliverables to me by a certain date. Also, the bid that is given reflects the extra amount of consulting, which might be necessary to facilitate the project. |
b) | A group of entrepreneurs, who would be involved in facilitating a new business venture part time at first, approach your Web firm regarding a viable Web site project. You know that they would be paying for this project out of their own pockets. What are your concerns? What questions would you ask them? What type of structure would you set up to circumvent any of the potential problems you have identified? ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ |
Answer: | To be perfectly blunt, in this scenario, I would worry about getting paid. So my questions would be along the lines of where they were in their business plan. Had some significant money and time already been invested in setting up this new venture? Would it be difficult for them to walk away from it now? You can get the answers to these questions easily just by listening. Usually, entrepreneurs are more than happy to tell you all about their plans and what they've done so far. Often, I'm asked to keep these details confidential, and I am more than happy to. I get caught up in their excitement too! However, should a partner drop out orsomeone lose interest or the Web component not be quite as hot as they initially thought, the Web firm could be inadvertently stuck holding the bag. However, if I'm confident that serious commitment has been shown already, a corporation formed, and other expenses undertaken, and that it involves a relatively short Web build-two to three weeks-I often find that it's a very joyful experience to work with this type of client. Most Web developers are entrepreneurs too, and there's enthusiasm to spare! |
c) | A large, multi-billion-dollar corporation asks you to submit a bid regarding a large body of work. This could easily tie your firm up for six months. What are the pitfalls of such an arrangement? What are the benefits? ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ |
Answer: | This is a prospect that can set many a project manager's mouth watering. If all goes well, for six months, the firm is busy. More time can be spent working on the project as opposed to prospecting new projects. Therefore, nonbillable hours, during this time, can be kept to a minimum. However, I've also known these situations to be rather nightmarish. Large companies often work on a P.O. system (purchase order) and may not be terribly fast about paying. I know of a scenario where a firm contracted for a year and was never paid during that time. Finally, they had to take a percentage of what was originally owed. Pitfalls can include the following:
Benefits can include
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a) | Compose a questionnaire for the client in Lab 10.1.1a. ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ |
Answer: | I would be interested in having answers to all of the questions mentioned inLab 10.1.2 for all three clients. However, I will list the questions that I would primarily be interested in for each client. With this client, I'm assessing their seriousness in taking on the Web project and following through, so I am particularly interested in answers to the following questions:
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b) | Compose a questionnaire for the client in Lab 10.1.1b. ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ |
Answer: | With this client, I'm assessing the viability of their business venture and their commitment to it, so I am particularly interested in answers to the following questions:
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c) | Compose a questionnaire for the client in Lab 10.1.1c. ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ __________________________________________________________ __________________________________________________________ |
Answer: | With this client, I'm assessing the organization level of the team that I would be working with and if we can work well together over the next six months.
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a) | An owner-operated business contacts you regarding a Web site. Upon meeting with the owner, a few employees make several selfdeprecating remarks about ill-fated attempts at other types of projects. The firm has only recently been funded and has been in operation six months. What are your concerns in this situation regarding the firm's ability to meet deadlines and keep the project moving? ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ __________________________________________________________ __________________________________________________________ __________________________________________________________ |
Answer: | Obviously, this firm is in a state of organizational flux. It will be difficult to get deliverables from them and obtain approvals for work completed. It's not their fault. It's just the nature of a start-up company. Everyone is settling in, and the foundation is being built. There may not yet be a clear line of authority or hierarchy within the company. They are just pushing product out the door and trying to pay their creditors. I would have no problem getting involved on something short term. The client should pick one person who has final approval on the Web site. That person has to stick to the deadlines or go to the bottom of the production schedule. Also, the person with final approval would need to be available by phone during the Web site build to make decisions. |
b) | A large corporation contacts you regarding a Web site. There seem to be a great many people on the project team with differing opinions. The corporation is motivated to move forward on the project as the home office in London is now requiring all of the subsidiaries to be on-line. They are quite open about their budget and the fact that they are interviewing several Web firms. What are your concerns in working with this group? __________________________________________________________ __________________________________________________________ __________________________________________________________ |
Answer: | This is a recipe for failure, unless it's managed correctly. Although I believe very strongly in a team approach, when it's on the client side rarely have I seen it benefit a project. One person has to have the final decision. I find that client teams tend to slow down a project considerably. It's like having too many cooks in the kitchen. Decision making can have a tendency to bog down with too many different opinions and ownership issues. A team approach, where one person makes the final decision and the team commits to making project deadlines, can work well. Otherwise, everyone's hands are tied, and the project moves very slowly. I would bid high for this reason, knowing that this will be a problem. Also, if the client is interviewing several firms, I would like to know who they are. I also would like toknow if my firm is being invited to bid because the company is interested in my Web firm's work and has seen it, or if we're bidding because they need to meet an internal quota of project bids before the money can be approved. This would have a great deal to do with the effort I would put into a proposal and/or presentation. |
a) | Say you've decided to move forward with the clients described in Lab 10.1.3. You would like to document your discussions regarding site hierarchy, functionality, deadlines, site graphical and written presentation, and any other requirements that the potential client may have mentioned. What purpose could this document serve? __________________________________________________________ __________________________________________________________ __________________________________________________________ |
Answer: | If the project is complex, it's always a very good idea to include a one-page outline to be signed by the client along with a work order at the time of contracting. This way, the client knows exactly what services are being covered under the work order and has the opportunity to dispute any inaccuracies. It's much easier to rebid a project than it is to get into a design phase and find that the client is expecting much more than was covered by the initial agreement. The firm would then be put in the position of renegotiating everything after money has changed hands, and this can strain the relationship between the firm and the client as well as slow down the project immeasurably. In a sense, the project manager is akin to a lawyer hammering out an agreement between two parties. A successful agreement provides a win-win situation for both the Web firm and the client. It facilitates the building of a project, which satisfies the client and pays the Web firm. If the client is happy, there will be repeat and referral business. As a result, there is a great deal riding on the clarity with which the bid is presented to the client. |
b) | For the project mentioned in Lab 10.1.4, write a one-page project profile. You may create your own set of requirements, reflecting a fictitious business plan. __________________________________________________________ __________________________________________________________ __________________________________________________________ |
Answer: | This is a project profile for ABC partners, located at 222 Acme Avenue, Anytown, USA 00000. ABC partners has contacted DEF Web firm to build a Web presence for their company that encompasses the following:
Total cost: $4000-$4500 Estimated Delivery Date: 2-4 weeks from start date |
a) | Admittedly, 90% of new Web site builds are bid on a flat bid basis (the project manager determines the total project cost, the tasks covered by the bid, and the schedule of deliverables), and most clients are more comfortable with this. However, can you think of a scenario in which it is better for all parties to bid Web development based on an hourly rate? __________________________________________________________ __________________________________________________________ __________________________________________________________ |
Answer: | In the scenario described inLab 10.1.3b, I would be tempted to bid based on an hourly rate. It's obvious that there isn't a great deal of organization yet toward developing the site. The large corporation has deep pockets, so there most likely isn't the possibility of stressing the client financially, and one is only asking to be paid for the hours spent on the corporation's project. Chances are that, given this situation (too many chiefs and not enough indians), decisions are going to be made and remade, causing the Web firm to redo work already completed. If there is a pleasant surprise, and the corporation's team does work effectively, then it will reap the benefits of less outlay for the site. However, should this not be the case, the financial burden will not fall upon the Web firm. I often work at a flat hourly fee on any maintenance projects for existing clients. By then, a trusting relationship is already established. There is a track record of payment and delivery already in place. The client trusts that I will not overcharge, and I trust that within thirty days the client will pay my bill. |
b) | If you are unsure of some of the project requirement modules, but the client wants to get moving right away, what are some options that could be available to you in bidding the project? __________________________________________________________ __________________________________________________________ __________________________________________________________ |
Answer: |
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In order to test your progress, you should be able to answer the following questions:
1) | (True/False) Which project(s) seems fairly safe to flat bid?
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2) | (True/False) When bidding a project, a project manager is like a
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