Why Software Quotes for the Same Project Vary So Much

Short answer: when quotes for the same project are far apart, the agencies usually aren't pricing the same project. Each one read your brief differently, planned a different team, included different things, and priced risk differently. The number at the bottom is the last thing to compare, not the first. Here are the seven things that move a software quote, and how to line quotes up so you're comparing like with like. If you're planning custom software for your business, this is the step most buyers skip.

1. Each agency read a different project

A one-page brief leaves gaps, and every agency fills them with its own assumptions. One assumes a simple login; another assumes roles, permissions and an approval flow. One assumes you'll enter data by hand; another plans an import from your spreadsheets. Same brief, different products. The fix is a clearer brief, not a cheaper agency. Our guide to briefing an agency when you're not technical shows what to write down.

2. A different team is doing the work

Some quotes include a designer, a project lead, a tester and senior developers. Others are one developer doing everything. Both can be valid, but they are not the same service. Ask who exactly is on the project and how much of their time it gets.

3. What's included, and what quietly isn't

This is the biggest source of difference. Check each quote for:

• UI/UX design, or only development from your designs
• An admin panel for your team, not just the customer-facing app
• Testing on real devices and a staging environment
• Hosting setup, deployment and app store submission
• Data migration from your current tools
• A bug-fix warranty after launch
• Documentation and handover

A quote that leaves out three of these will look cheaper and cost more by launch day.

4. How risk is priced

On a fixed-price quote, the agency carries the risk of underestimating, so a careful one adds a buffer. On time and materials, you carry that risk, so the starting number looks lower. Neither is wrong; they're different deals. Fixed price vs time and materials explains the trade-off.

5. Built from scratch or from something existing

Some agencies start from a template or an existing product and customise it. That can be faster, but ask what you'll own at the end and how hard it is to change later. Others build only what your workflow needs. The quotes will differ, and so will what you get.

6. Running costs counted or ignored

Hosting, third-party services, store fees and maintenance aren't part of the build, but some quotes mention them and some don't. Ask every agency for an estimate of monthly running costs so the comparison is fair. Our guide to what an app costs to run every month lists what to expect.

7. Location and overheads

Rates differ by country and by company size. That's real, but it explains less of the gap than buyers expect. Two agencies in the same city can still be far apart because of points 1 to 6.

How to make quotes comparable

1. Send every agency the same written brief, including the workflows, user types and anything you already use.
2. Ask for the quote broken down by milestone or feature, not one number.
3. Ask each agency to list its assumptions and exclusions in writing.
4. Ask who is on the team and what each person does.
5. Ask for an estimate of running costs after launch.
6. If one quote is far lower, ask that agency what it left out. If it's far higher, ask what it included that others didn't.

Once quotes are lined up this way, the gap usually shrinks, and the remaining difference tells you something real about each team.

When the cheapest quote is the right one

Sometimes it is. If the scope is small and well-defined, the cheaper team has shipped something similar, and the quote includes everything on the list above, there's no reason to pay more. The problem is only a low number that comes from a smaller project than the one you described.

What we cover on a scoping call

We don't send a number from a one-line brief. On a scoping call we walk through your workflows, agree what the first version includes and what it doesn't, and then send a written scope with milestones and an itemised quote. If you already have quotes from others, we're happy to tell you what each one seems to include.

FAQ

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Comparing quotes right now? Book a free scoping call and we'll help you line them up against one written scope.