I work for a small development shop doing server and occasionally desktop apps for customers. We were thinking about developing a product and contacted two studios that have experience with what we like to do. One didnt get back to us. The other listed how many hours each features would take and at the end put a 15% fee for testing and 'unknown'.
While this doesn't strike me as odd, their hourly rate is. They charge $150 USD. For 160 man hours we have a bill of 24k (USD). Some programmers make that amount in 6months, this company/person wants it for one month work. Now the programmers in my studio make about $35 an hour. If we put a guy on it, it MIGHT take us 4-5months which is roughly what our bill comes to be.
But i still think its ridiculous. Is this standard? should i try to find another company? what should i do?
What he is doing is specialized however the SDK required is well document and a microsoft product (so we have faith in the documentation, but its still specialized). The company is located in california.
What are you thoughts?