Entrepreneurial Project Management

Guerrilla tips and tactics for getting things done

If You Care about Quality, Don’t Compete on Price

Posted by matteverard on July 12, 2006

Writing about my basement made me remember an important PM rule about winning contracts–good buyers are not as price conscious as you think. They’ve been burned before and understand that your price includes some padding to make things right. My basement contractors were 25% over the next bid, but I went with them b/c I know I’m a quality hound.  I want the same ethos in my subs and I’m willing to pay for it.  Clients who go for the lowest bid either (1) don’t know how complicated software dev is or (2) are very good at beating their vendors to death with ambiguous terms in the SOW.  In either case, this is bad revenue and should be avoided.


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