How We Estimate New Projects at EGO — and Why This Approach Works for Clients
When you're diving into a new project in UI/UX, web design, or mobile app development, nailing down the details is crucial. At EGO, we have a method that keeps things transparent and straightforward. We use something called the Rough Order of Magnitude (ROM) estimate. This approach helps everyone get on the same page right from the start.
What is a Rough Order of Magnitude (ROM) Estimate?
A ROM estimate gives you a broad idea of how much effort and money a project might need. It's a ballpark figure used early on when things are still a bit fuzzy and details aren't nailed down yet. It helps set expectations for both the team and the clients.
Why Use ROM Estimates?
Early Project Screening
ROM estimates are great for figuring out if a project is doable from the get-go. They help you decide if a project fits a client’s budget and resources. This way, you can spot projects that might turn out too expensive or complicated to handle without wasting time or resources.
Communicating Uncertainty
One of the biggest perks of ROM estimates is that they show uncertainty right upfront. Instead of promising a fixed number, you get to present a range. So if you say a project might take anywhere from 20 to 200 hours, you're setting a sensible range of $1,000 to $10,000. This keeps expectations realistic and avoids overpromising.
How to Calculate a ROM Estimate
Coming up with a ROM estimate involves a few straightforward steps and techniques:
Using Analogous Estimates
This method is super quick. You look at past projects that are similar to get a sense of time and cost for the new one. Say a previous UI/UX gig took 100 hours and cost $5,000; use this as a starting point for the new project. But remember to tweak for any new twists or turns the new project might bring.
Applying the ROM Formula
Another approach is using a simple formula to set the boundaries of your estimate:
- Base Estimate: Start with a solid number from a similar past job or just a high-level quote.
- Lower Bound: Estimate × 0.75
- Upper Bound: Estimate × 1.75
For example, if your early guess for a web design project is $10,000, then your ROM range would be:
- Lower bound = $10,000 × 0.75 = $7,500
- Upper bound = $10,000 × 1.75 = $17,500
This gives you a ROM range from $7,500 to $17,500. Present it to the client as: "Based on early assumptions, the ROM pricing falls between $7,500 and $17,500."
Techniques for Estimating ROM with High Uncertainty
When there’s a lot of unknowns, try these methods:
Estimation by Analogy
Look at data from past, similar projects. Quick and usually reliable, but watch for changes in external conditions or new features that might affect the cost.
Expert Judgment
Get insights from team members who have handled similar projects. Mix their experience with historical data to estimate the project’s scope and cost more accurately.
Unit Costs
Break the project into smaller chunks and estimate costs for each. For example, figure out the cost per webpage for a site or per feature for an app. This detail can give a clearer picture.
Why This Approach Works for Clients
Transparency and Trust
Offering a range instead of a hard number builds trust and keeps clients in the loop. It helps manage expectations and prevents unpleasant surprises.
Realistic Budgeting
ROM estimates equip clients to make smart budgeting choices. They offer a clear understanding of possible expenses, aiding in planning and reducing budget overruns.
Flexibility
This method allows for updates as the project evolves. As you gather more info, refine the estimate to keep the project on track and within budget.
Conclusion
Nailing a project estimate is a win for both clients and project managers. At EGO, ROM estimates give a realistic view of what to expect in terms of time and costs. Whether it's UI/UX, web design, or mobile app development, this approach breeds transparency, trust, and smart budgeting.
Have Something in Mind?
We have the expertise to make your dream come true. Here are some of the services we offer:
- UX/UI design
- Graphic design and illustrations
- Animated Graphics
- Cross-platform mobile app development
- Native web development
- Webflow and Framer development
- No-code automation and integrations (Make, Zapier, Airtable, Notion, Stripe, or a custom one)
Got any questions? Let’s discuss it. Contact us today to turn your vision into reality.
