[RyanZAG]

You're probably losing more business than you think - customers have no idea who is accurate or who is just faster, etc. They will generally go with the lowest quote regardless of other factors unless they've been burned before multiple times. Most people haven't.

I don't have a solution here though other than noticing that underbidding and then getting skilled at convincing clients to do paid extensions later actually appears to make the most money at the cost of your ethics. I'd avoid that approach, but it does seem to work for a lot of companies.

My personal approach is to quote for very bare projects with only the bare essentials (eg, poor UI design, minimum possible feature for the client to see what they're asking for, etc). This can usually be done a lot cheaper than most people think as 90% of the work is in the last 20% of the features. Then once the client has something, you can give them a quote to touch up the parts they need. Basically you split the project up into many small projects each with their own quote which helps you to estimate tasks as they appear and helps your client to minimize costs by leaving off features that are more expensive than they initially appear.

[crusso]

I get contract work through referrals. I'm not interested in being perceived as a "low cost developer".

I would just as soon not keep customers only interested in the lowest price. They're the ones that typically will be the biggest headache.

[phamilton]

The other side of that coin is that often the clients I get via referrals have no reasonable alternatives. They often have done all business through referrals and so the alternative to me is the open market which is intimidating and has a significant barrier to entry. The end result is that we build a solid and stable client relationship that generally only gets upended if/when money runs out.

It's a great position to be in, provided you have the throughput to expand to other clients and aren't dependent upon a single client for income.