If you put the same project brief in front of three software companies, you’ll almost always get three different prices. Sometimes 3–5x apart.
That doesn’t mean one vendor is “ripping you off” and another is magically cheap. It usually means they’re solving different problems with different levels of risk built in. This guide gives you a simple evaluation framework to compare apples‑to‑apples before you decide.
Quick Answer: The 4 Dimensions to Compare
- Scope: What’s actually included and what’s explicitly out of scope?
- Architecture & quality: How robust, scalable, and maintainable is the proposed solution?
- Delivery & risk: How they manage estimation, change, and failure modes.
- Total cost of ownership: Build cost + hosting + maintenance + internal effort over 3–5 years.
1. Normalize Scope Before You Compare Price
Start by building a simple comparison table with your core requirements on the rows and vendors on the columns. Mark each cell with:
- Y = included,
- P = partially included,
- N = not included.
Pay special attention to:
- Non‑functional requirements (performance, security, uptime).
- Integrations (ERP, CRM, payment gateways, data warehouse).
- Admin tools and reporting that ops teams actually need.
If one proposal is meaningfully lighter on scope, adjust your comparison—or ask the vendor to re‑quote to a shared baseline. Our RFP template gives you a structure for defining that baseline.
Proposals are easiest to compare when each is priced against a written scope. That is how Stratagem prices a project: one fixed price for the scope, with milestones and acceptance criteria.
2. Compare Architecture and Technical Approach
Two proposals at the same price can have very different architecture implications. Ask each vendor to describe, at a high level:
- How they’d decompose the system (modules, services, boundaries).
- Where they expect load, complexity, or security risks.
- What observability (logging/metrics/alerts) they’re including.
If you don’t have an internal architect, get a second opinion from someone who has built similar systems before you sign. An hour of review is cheap next to a wrong architecture.
3. Evaluate Delivery Model and Risk Handling
Proposals should spell out how the work will be delivered, not just what you’ll get. Compare:
- Release cadence: how often you see working software.
- Communication rhythm: weekly check‑ins vs. sporadic updates.
- Change‑control process: how scope changes are priced and approved.
Then map proposals to the three classic models compared in fixed‑bid vs T&M vs dedicated teams:
- Fixed‑bid: great when scope is clear; risky if it isn’t.
- Time & Materials: flexible, but requires strong product ownership on your side.
- Dedicated team: best when you have a long roadmap and can manage priorities weekly.
4. Look at 3–5 Year Total Cost of Ownership
Price tags on proposals ignore the fact that software lives for years. When comparing, ask each vendor for estimates or assumptions around:
- Hosting and infrastructure costs.
- Licensing for proprietary components, if any.
- Ongoing maintenance (bug fixes, upgrades, security patches).
- Internal time required from your team (PO, subject‑matter experts, IT).
The custom ERP vs off-the-shelf comparison shows how five-year TCO plays out for one common case.
5. Build a Simple Proposal Scorecard
Create a one‑page scorecard with the following columns:
- Scope coverage (0–10)
- Architecture & technical approach (0–10)
- Process & communication (0–10)
- Vendor fit & references (0–10)
- Total cost of ownership (0–10, inverted—lower cost = higher score)
Have each stakeholder score independently, then compare. You’ll often find that the “middle‑priced” proposal is the clear winner once you look at risk and outcomes instead of just cost.
6. Next Steps
To make your next decision easier:
- Use the RFP template to make sure vendors are responding to the same brief.
- Send them our 25 questions ahead of your call so you can dig into substance quickly.
- Anchor your budget with the pricing guide before you evaluate any numbers.
Want a second opinion on proposals you've received? Send them over. I'll review scope, architecture and risk on a short call, and tell you how I would scope the same project so you have a benchmark that isn't just a rate card.
