[muzani]

"Other people make bids at say 80% of the real cost of doing a project properly, planning to fight with customers to get more money later, e.g. claiming that things are not in scope. Once the customer is hooked, then there is more room to make money."

This seems to be much of the consulting industry, not just Upwork. One of the companies I worked with paid managers bonuses based on the number of change requests paid for.

[jake_morrison]

It's a bit nuts to try to estimate software development. People want certainty that they can't actually get. Some will even overpay 2-3x just to have it be a fixed number. Having a good process for managing change and accountability is key.

In the case of UpWork, a friend in California was not particularly price sensitive, he just didn't like the bullshit. Every project would involve Skype calls in the middle of the night. He would ask for something for his website and someone would bid $500, then come back and try to fight for another $100. But if they bid $600, they would probably lose. You post a job and there are 100 similar bids. So you just choose the cheapest from the first page or two. Anyone who put any thought into the bid is on page five. And the cycle repeats.