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Here’s a bit more on what you’ll learn in the Software Pricing Guide

Why is Software Development So Expensive?

Let’s start with the av­er­age salary for a soft­ware de­vel­oper in Australia. Indeed AU has put this fig­ure at $94,000. That’s a good start but that num­ber is­n’t ac­cu­rate in and of it­self. Every or­ga­ni­za­tion has over­heads like equip­ment, elec­tric­ity, rent for the of­fice space and sub­scrip­tions/​li­censes. We can’t for­get su­per­an­nu­a­tion, that’ll add an­other 10%. Finally, let’s re­mem­ber that every busi­ness needs a mar­gin. So, our fi­nal equa­tion be­comes $94K + ($94K x 0.3) + ($94K x 0.10) + ($94K x 0.3) = $3.3K per week.

How to Make Sure You’re Getting the Right Price

We can’t rely on a sin­gle de­vel­oper to build an ap­pli­ca­tion them­selves. We’ll need a sec­ond de­vel­oper to en­sure the knowl­edge of the sys­tem is shared. We’ll need a few other dis­ci­plines to en­sure we’re cre­at­ing an amaz­ing prod­uct. A scrum mas­ter is needed to keep the pro­ject on track, a prod­uct de­signer is needed to re­search and de­sign the best user ex­pe­ri­ence and we’ll want to oc­ca­sion­ally con­sult a cus­tomer suc­cess con­sul­tant. This gives us a range of $10K - $14K per week.

Cost Per Stage of Development

This is where it gets very in­ter­est­ing. It’s some­thing we haven’t seen any other agency share. We’re go­ing to tell you what the av­er­age length and cost is for our past 9 pro­jects. We’ll pref­ace this by say­ing these were full prod­uct builds. The av­er­age scope length was 3 weeks. The av­er­age de­vel­op­ment length was 9.85 weeks and the av­er­age cost was $118,000.

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