Sunday, April 3, 2011

Why Software Is Cheap!

Quote Originally Posted by Beel, http://heavyequipmentforums.com/ Click here: View Post
Does anyone know of a decent cost estimating program that doesn't cost a gazillon dollars?! I have surfed the net for weeks and have tried every garbage program out there. They are either too confusing or focused on residential/commercial building, and remodeling. Can't seem to find anything focused on heavy construction priced reasonably under $1000.

The only problem with $1,000. is that gives you about 8 hours of time to:
Respond to 100 prospects who might be a buyer
Train the Client (10 hrs minimum)
Develop a program with 6000 computer programmer hours
Develop the documentation for the program
Hire and Train the Support Technicians and Sales Staff
Pay for the office overhead
Develop software improvements
Make a small profit

You can do this if you sell more than 500.000 programs. However there are about 21,311 Heavy Construction businesses in the U.S. and you are not going to sell all of them.

So if you get 21,311 to give you 100 sales of $1,000., you will make $100,000 this year which will never pay your costs. You need to turn this around and figure what it costs you NOT to have a good estimating program. A good estimating program will make you hundreds of thousands of dollars. (I can say this because we do not sell estimating programs.) if you spend $12,000 to make $60,000 you just made $5.00 for ever $1.00 you spent this year! Next year is $2,000. for the same $60,000. And so on.

You can see why the $12,000 is a real deal!

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