Price Ranges
Fees vary widely for custom software.  What should you expect to pay?

Many clients have reported accepting contracts without making price comparisons and have paid incredibly high fees for simple, mediocre products.  Often clients feel that they don't know how to make these decisions due to the technical issues involved, but there are ways to get the information you need.

Many services like web hosting or ISP's list their prices online, but web and custom software development companies generally do not.  This is because it is difficult to estimate a project without specifications.  However, you should take the time to make the following comparisons even if you have a recommendation from a company or individual you know.

First, spend time doing a web search for businesses similar to your own.  Find out who created their web site and ask if the company is satisfied with the price and performance of their web site or custom application.  Does the software company do a good job maintaining the site?  Do they charge by the hour with a minimum rate or do they do small jobs at a reduced rate?  How responsive are they to customer needs, especially in critical business situations?

After interviewing the customers, begin calling the software companies.  They should be open about their fees and policies.  Although they probably can't give a precise dollar amount immediately, if you point out a site you liked that they created, you can say, "About how much would a site like that cost to build?"  Are they evasive in giving at least a rough estimate?  Will they give you a list of references to check?

When you have finally settled on a company, you can do a final check by running a web search on their name for comments or notes about them online.  Also check with the Better Business Bureau for adverse actions or comments.

Don't settle for the first software development company you encounter.  Prices really vary and it is worth an investment of a little time and effort to find a company you can trust.