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What custom software costs: what actually sets the price

Same brief, two firms, quotes three times apart. Not everyone is lying — they are pricing two different things.

The SealCore team3 min read
Illustration for: What custom software costs: what actually sets the price

The question "what will this software cost" is nearly impossible to answer on a phone call, and anyone answering immediately is guessing. But it is possible to be clear about what pushes the price up, so you can estimate for yourself and read any firm’s quote.

Price is not per screen

Many quotes list "20 screens × a price per screen". That is wrong at the root: a customer list screen and a screen computing pay by shift with sales bonuses and allowances differ in complexity by an order of magnitude.

Real cost comes from the number of business rules to encode and the number of states data can occupy. An order with four states is easy; one with eleven, including cancellation, partial return, exchange and reissued invoice, is several times harder.

Six factors that raise the price

FactorWhy it costsImpact
Number of independent processesEach is its own rule set and its own test setVery large
Integrating other systemsDepends on the other side’s documentation and stabilityLarge and unpredictable
Migrating old dataCleaning, mapping, reconciling — not fully automatableLarge
Fine-grained permissionsRights by branch, by field, by stateMedium to large
A mobile appAnother platform is another development and test cycleLarge
Working without a networkRequires sync and conflict resolutionLarge

The last two rows get mentioned in passing during the survey and become a dispute at sign-off. If you need an app for field staff working where signal is poor, say so in the first meeting — it changes the architecture, not just adds a feature.

Three costs not inside the software price

  • Infrastructure. Servers, domains, certificates, backups, monitoring. A mid-sized internal system typically runs from a few hundred thousand to a few million dong a month depending on load and backup requirements.
  • Third-party services. E-invoicing, SMS, digital signatures, maps, AI models — each its own contract and usually billed on usage.
  • Your own staff’s time. Surveys, pilots, training, and the period of doing the job twice while both systems run. That is a real cost; it simply does not appear on an invoice.

Fixed price or time and materials

ModelFits whenYour risk
Fixed price for a defined scopeScope is clear and unlikely to moveChanging your mind mid-way needs an addendum and more money
Time and materialsScope is still open and being shaped as you goNo ceiling on cost unless you set one
Hybrid: fixed core, flexible extensionsMost small and medium business projectsYou must define clearly what "core" means at the start

SealCore quotes a fixed package price after the survey, broken down by milestone. Anything outside scope is quoted before the work happens rather than added at the end — which matters more than the headline number, because it determines whether you get surprised.

Comparing two quotes three times apart

Before concluding which is expensive, check six questions against both:

  1. 1Is migrating the old data inside the price, or a separate line item?
  2. 2How many training sessions, where, and for how many user groups?
  3. 3How long is the warranty, and what does it cover — defects only, or small adjustments too?
  4. 4Is handover of source code and documentation in the contract?
  5. 5After handover, what does changing a form or adding a report cost?
  6. 6Who pays for infrastructure during development, and after handover?

Very often the quote that is three times cheaper has simply left four of those six outside. Add them back and the two numbers converge — the difference being that the cheaper firm presents the extra invoices when you are halfway in and cannot easily turn back.

Want to talk specifics?

SealCore surveys at your premises and sends a fixed quote after the first session — including when the conclusion is that you do not need custom software.

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