Custom EPOS/Invoicing Solution Build Cost

[Linus]

Hi

I have built a fully bespoke system for a company without discussing costs and its scheduled to go live in the coming weeks however I need to discuss costs with the business owner prior to go live. Yes I absolutely realise this is completely the wrong manner in which to have dealt with this. The project started off as a simple purchase order system and spiralled out of control from there on out. This has been developed over the past 2 years, estimation of 1,500-1,700 hours in total.

The system is built using PHP, MySQL and jQuery. A high level list of system functionality is as follows:

• Individual user logins with 3 different security levels
• 4 Digit PIN authentication for quick login for counter sales
• Customer & Product data synchronised from Sage 50 Accounts daily
• Manually create customers that don't belong in Sage, all customer records have custom fields and contacts
• Print address labels directly to a Dymo Printer
• Create Supplier records for use in Purchase Orders only
• Secure Encryption of Credit Card data, using secret keys which are accessed over an encrypted Site to Site VPN.
• Products linked from Sage have custom fields, for example Friendly Names for receipts and additional prices.
• Create Purchase Orders using autocomplete from Suppliers table, product entry is free hand, Print or single click Email PDF Purchase Order.
• Create Pro Forma Invoices using autocomplete from Customers table, products added using autocomplete from Products table. All totals are automatically calculated for the user. Print, Download or single click Email PDF invoice.
• Create Sales Invoices using autocomplete from Customers table, products added using autocomplete from Products table. All totals are automatically calculated for the user. Print, Download or single click Email PDF invoice.
  
• Print Sales & Delivery Notes to Star Thermal printer, extremely quick and cheaper than A4 printing.
• Credit notes can be manually created or by refunding items from a Sale
• Sales & Credits Reports, user selectable data range or specific customer. All reports have financial statistics and totals calculated.
• Export Sales & Credits and import into Sage removing all aspects of manual entry

I did say high level, sorry for not keeping it as short as I hoped.

From reading online, the answer to my question is how long is a piece of string and particularly as I've built the system already it makes that piece of string even longer. I was thinking about selling the system at a one of cost for ????? but have recently been moving further towards the idea of a monthly subscription.

Whilst I know it's 100% impossible to get an answer to my question, I was wondering if anyone out there has previous experience of pricing and developing bespoke systems which may aid me in this current dilemma.

I have a long business relationship with my client and currently cover all IT aspects for them.

 

[arnydnxluk]

I would personally want to receive payment in full for the time spent up to now before delivering the project, be that at your usual hourly rate or fixed value pricing. A project of this kind will presumably require a monthly maintenance contract anyway on top of the development cost.

If you only charge monthly then it could take years to recover the true cost of your work, during which time you're risking not receiving full payment (e.g. business goes bust).

Is your client aware of how much time has been spent and the likely cost involved?

 

[Linus]

Thank you for your input @arnydnxluk, it's much appreciated.

In my mind there are two options, payment in full for development with an ongoing maintenance contract, or a monthly charge. You are very right in stating the risk of just charging monthly and to add to this risk, there is a very high chance the business will soon be sold, the new owners could cancel the contract at it's renewal.

The company in question is purely pen & paper based, however with the system I've developed it removes a huge amount of human error, speeds up serving serving customers dramatically and reduces the accounts personnel workload by 75% minimum. From a business perspective it's a huge leap forwards into the 21st century and becoming far more efficient.

My client is 50/50 aware of the actual effort invested in this project but most definitely will not be aware of the potential costs. My client (business owner) is of retirement age and whilst can see the benefits and has been reaping them, excluding EPOS, for the past 18 months, simply doesn't realise the cost of major IT projects.

I am fully aware of the disastrous scenario I've created for myself, hence reaching out. On the positive side, if all fails I can turn the system "off" which would cause major internal company issues, accounts personnel would leave for a start as they do not want to manually input invoices when there is an automated process available.

 

[TargetICT]

I'd also advice getting paid for work done so far though considering hours already invested that might be a turn off for the client.
Can you set up a meeting, outline what you've saved him, time you've invested and Co and try to find out what all that is worth from him? At least that should establish that the solution is not free and give you an idea what he would be willing to pay.

Secondly, can you approach other business owners in the same vertical and with the same problems and offer your solution to them? That would be a way of recovering invested costs if the client cannot cover them.