Why Can Two Technical Proposals Look Identical but Have Major Price Gaps?

You receive two proposals for a software development project. Same number of features, same timeline, same type of technology, yet one costs almost twice as much as the other. Why such a difference? This is a common and valid question among SME leaders and digital project managers. On the surface, everything may seem equivalent, but under the hood, the reality is often very different. Here are the main reasons why two technical proposals can show significant price differences, even when they appear similar.

1. The depth of need understanding

At Altevo, we always begin with an in-depth needs analysis. This ensures alignment with operational reality, users, and business constraints.
Not all firms invest the same effort at this stage. Some jump straight from a specification document, or worse, a simple RFP, without challenging initial assumptions.

As a result, two quotes may both include the same feature, but in one case, it is designed to fit perfectly into real workflows. In the other, it is a generic implementation that will require many adjustments later, often with unexpected costs.

2. The level of customization

The same feature can be built in very different ways. Are we talking about a fully custom module, a lightly adapted existing tool, a complex integration between systems, or a plug-and-play solution held together with duct tape?
Each approach has a different cost. If this is not clearly stated in the proposal, clients may wrongly assume the solutions are equivalent.

3. Technology choices and long-term impact

Price differences can also reflect different technology choices. Some tools allow for fast delivery but are hard to scale or maintain. Others require more effort upfront but provide a solid, future-proof architecture.

At Altevo, we prioritize maintainable, well-documented, widely used technologies. This is a deliberate choice. We think about future evolution from day one. A higher price today can mean fewer problems tomorrow.

4. Team experience and rigor

A higher-priced proposal may include better project management, more experienced developers, stronger testing phases, and more serious risk management.
These elements are not always visible in a proposal, but they directly impact the final quality and your peace of mind.

5. Post-delivery services

This is one of the biggest gray areas. Some vendors deliver a product and walk away. Others, like Altevo, include post-launch support such as maintenance, adjustments, and evolutions.

This represents a budget component, but also significant long-term value. If it is not included, you may end up paying later for every small change.

6. Project framing or lack thereof

A solid proposal includes a clear breakdown of deliverables, effort estimates per functional block, defined timelines, and explicit assumptions.
A vague proposal often hides significant risks, which usually turn into costly surprises down the road.

7. Relationship quality and communication

A development project is not just code. It is a human collaboration over weeks or months.
The price may include regular follow-ups, a dedicated contact person, shared communication tools, and real relationship management.
This often makes the difference between a smooth project and a frustrating experience.

8. Security considerations

Some proposals underestimate or ignore cybersecurity. Yet whenever sensitive data or critical processes are involved, it is essential to plan for strong authentication, encryption, logging, security audits, and contingency plans. These elements add cost, but also robustness, compliance, and peace of mind.

Should you always choose the cheapest proposal?

Not necessarily. The right approach is not choosing the cheapest or the most expensive option, but comparing proposals with full awareness.
Ask these questions:

• What services are included or excluded?
• What methodology is used?
• Does the provider truly understand my context?
• What happens after launch?
• How are unexpected issues handled?

A price gap is not necessarily abuse. It often reflects different values, approaches, and levels of commitment.

In summary: clarity and trust matter most

At Altevo, we take the time to review our proposals in detail with our clients. We want every element to be understood, discussed, and agreed upon.
Our goal is not just to win a project. It is to build a long-term collaboration based on transparency and excellence.
And that starts with the proposal.