What should I charge for an low-code cloud database solution for a small company

Question

Dear Community,

I know this questions is hard to answer. I would be grateful for any help.

An association that gives talks about anti-mobbing in schools for children and teachers has asked me to build a cloud based database for them in which they can easily input their presentation protocols (so which school, how many attendies, which type of talk, etc.) and get useful outputs such as how many schools had that talk etc. It would also be my job to transfer their current Excel database to the new one.

I would like to use a low-code service like airtable and have never done this before. I wont charge the association for my learning process, but still if the product is good I want to be paid for it.

So is there someone out there who has experience in being a freelancer and can help me forumlate an estimate for this project? I would be very grateful and am happy to provide more information if needed to answer this question truthfully.

Thank you

Answer 1

It’s important to begin by asking the client about their budget for this project. If they have a budget in mind, perhaps on a monthly basis, use that as a reference point. Understanding their budget allows you to provide the maximum value while staying within their financial limits.

Bear in mind that companies often have larger budgets than individual freelancers, and most businesses allocate funds for services like this. For instance, a university lecturer of mine once shared how he charges companies for his IT services. He simply asks about their project budget and sets his fee accordingly. He noted that if they don’t use the entire budget, it might be reduced for future projects, potentially limiting their resources. This results in a win-win situation:

1. The department will use most of the budget or the entire budget and thus keep the budget in the future
2. You get more money without overcharging. When a company allocates their funding, they expect the money to be invested.

Since you’re working with a smaller organisation, they might not have a precisely calculated budget. In that case, ask what they’re willing to pay and determine if that amount is reasonable. This approach could potentially lead to a higher payment.

Rather than charging an hourly rate, consider setting a fixed price for the entire project. You can then apply an hourly rate for any additional work beyond the agreed scope. If you complete the work in just a few hours, you can still be fairly compensated with a fixed price. If there was no fixed price, you would only get x times the amount of the hourly rate.

Evaluate for yourself whether a fixed price or an hourly rate would better suit this particular project.

Cheers,