How much can we quote for embedded projects in chennai ? and on what basis ?

Question

Hi,

First i like to thank for the answerers for my previous question.

I have a startup company in Chennai. Assume i have a project that i need to design Hardware and software part for a coffee Vending machine. Based on the customer requirements i had estimated it needs 600 manhours to complete the project. The customer demands i should take care of all resources needed and expenses for this project. I dont know how much to quote for this project. can i quote roughly of $20 per hour, so that i can get $12,000 as a whole.

In general how much the Embedded system designers will charge ?

Is there any other method to calculate estimated cost ?

I am also looking for partners in chennai to enhance my business.

Thanks in advance.....

Answer 1

20 $ seems to be good price, but i would say you calculate your gross margin and the infrastructure cost + other costs ( recruitng ).  Consolidate this and divide it to the man hrs.. Put a margin as well as a calculated risk.

The rates for Managers, other resources may be diff.. so calculate accordingly.. Make an excel sheet and put all the costs involved in and make a colum where you can enter the expected margin ( eg: 50 % ) ..  make sure that always put the rates at the higher band. For eg : let say a Desktop cost from 20 K - 25 K put 25 K...  if you wanted to negotiate with client put extra % and do accordingly..

All the best