My Client has $100k but my Devs quoted $200k. What to do?

Howdy, fellow software agency employees!‍

Let’s talk about a scenario we’ve all faced: the classic client budget mismatch.

Your client has $100k to spend, but your developers quoted the project for $200k. Cue the dramatic music. 😱 But fear not—we’re not here to cry over spilled estimates. We’re here to save the day and the deal.

Don’t Just Drop the Bomb

First things first, let’s address what not to do. Don’t just fling the $200k quote at your client and call it a day. That’s a fast track to ghosting. Instead, you’ve got to finesse this situation. Let’s break it down.

Step 1: Make a Detailed Quote

Think of your detailed quote as your project’s roadmap. Break it down so your client can see exactly where their dollars are going. Show them how much each feature or functionality costs. This is your chance to set the stage for meaningful conversations about priorities. The clearer the breakdown, the better your chances of moving forward.

When preparing your detailed estimate, consider using a Configure, Price, Quote (CPQ) software tool. It simplifies the process by automating calculations and providing a professional proposal that’s easy for clients to understand. Accurate project quoting is critical to avoid misunderstandings.

Example: https://app.apropo.io/proposal/ai-estimo/marketplace-portal-estimate---versions-example/z27434e4

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Step 2: Create Options

It’s all about flexibility, folks. Instead of a take-it-or-leave-it proposition, present three options:

- Option A: MVP This is the Minimum Viable Product. It’s the bare essentials that can be achieved within the client’s $100k budget. Think of it as the starter kit.

- Option B: In-Between A middle ground that balances costs and features. This is your Goldilocks option—not too hot, not too cold.

- Option C: Full Scope This is the dream version—everything the client wants, but at the $200k price tag. Sure, it’s a stretch, but it gives them a vision of what’s possible.

Example: https://app.apropo.io/proposal/ai-estimo/marketplace-portal-estimate---versions-example/z27434e4

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Step 3: Make some valuable points

Now that you created options, you opened the door to make some valuable points to convince your client to start either with MVP or Medium option:

Phases‍

Pitch these options as phases. Start with Option A, then build up to B and C over time. Show your client he will get everything he needs and in the right order.

Start small

Explain that most successful products and systems always started from small, must-have based version (e.g. Facebook, Spotify, Canva).

Do the same here and let’s add more features when you see the base version of the product is working‍

Time to market

Often more important than cool features.‍

Let the market tell you what features are needed

The client doesn’t know which of the nice-have features will be more or less important to the users.
He can save a lot of time & money by releasing a product that is “incomplete” and getting feedback on what’s needed, instead of spending all the budget on nice-haves that no-one needs and later be out of budget for the features that the users really need.

Here’s the deal: time-to-market often trumps fancy features. Remind your client that it’s better to get a functional product out quickly and gather user feedback than to blow the entire budget on bells and whistles that might not even matter. Real-world testing beats theoretical perfection every time.

By focusing on smaller, incremental deliverables, you’re aligning with best practices in pricing tools for software development. These tools can help showcase how leaner budgets can still deliver impactful results.

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Step 4: Schedule a Presentation

NEVER leave your client alone with a quote, especially one that’s over budget. If you just email it over, good luck ever hearing back. Instead, schedule a presentation. Ideally, lock in the presentation date during your first meeting. If you missed that boat, don’t panic. Send a follow-up email like this:

“Hey Joe,

I have the estimate ready for you. I’d like to walk you through it to give you a better understanding of what’s included and more background to the numbers.

There are also some talking points on which the big part of the cost depends.

Are you available tomorrow?”

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Boom. Now you’re back in the game.

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The Takeaway

Handling a budget mismatch is all about communication, creativity, and collaboration. By breaking things down, offering flexible options, and staying proactive with presentations, you’ll turn a potential deal-breaker into a win-win. Remember, your goal is to show your client that their project is not only doable but also strategic and scalable.

By integrating CPQ tools and strategic software estimation techniques into your approach, you’re not just quoting a price—you’re providing a roadmap to success.

Now it’s your turn—how do YOU handle over-budget estimates? Share your wisdom in the comments below. Let’s learn from each other!

Happy quoting! 🚀