When reality changes but pricing doesn’t
In 2022, building a basic SaaS MVP — user system, dashboard, API — took a team of three developers roughly six weeks. Cost: $49,000.
In 2026, that same MVP gets built by one senior developer with Claude Code, GitHub Copilot, and Cursor in a few days. Realistic cost: $8,000–$12,000.
So what does a leading US development shop quote in 2026?
Still $40,000–$54,000.
The three hiding mechanisms
Mechanism 1: hidden “consulting hours”
Many quotes are built on an “X hours × hourly rate” model. What goes unsaid: developers are using AI to generate 40%–60% of the code — but still billing full hours.
There’s zero transparency about how much code was written by hand versus generated by tools. That’s not opacity — that’s manipulative pricing.
Mechanism 2: “complexity” that doesn’t exist
One of the most common line items in an inflated quote: “custom authentication and user system” — $8,000 to $14,000.
The reality? Building a full user system with Supabase Auth, Clerk, or Auth0 takes less than a day today and costs $0 in code (just usage-based service fees).
“PDF report export” — $4,000? A basic AI plan does that in ten minutes.
Mechanism 3: deliberate technical lock-in
Many shops build systems on proprietary internal frameworks, non-standard APIs, or unique deployment methods.
The result: when you want to switch vendors or make independent changes — the exit cost is impossible. You’re stuck. They know it when they build it that way.
The economics of a dev shop: why won’t they lower prices?
An average US dev shop with 15 engineers carries fixed costs of $81,000–$108,000 a month (salaries, office, management, sales). To stay profitable, it needs a deal pipeline of $135,000–$162,000 a month.
Its only lever to grow profitability without laying people off is to raise prices, not lower them.
AI is a tool for their internal efficiency — not for your savings.
What you can do right now
1. Ask for hours broken down by component
Not “backend development — 200 hours.” Instead: “user system — X hours, payment integration — Y hours, dashboard — Z hours.” A breakdown forces transparency.
2. Ask “what did tools generate vs. what was written by hand?”
An honest shop will give you a straight answer. A shop that can’t answer — is hiding something.
3. Require code on a standard stack, fully owned by you
Next.js, Supabase, Vercel — not their proprietary framework. Put it in the contract: source code transfers 100% to your ownership at project completion.
4. Get an OpEx estimate before you sign
How much will servers, APIs, licenses, and support cost — per month, with 1,000 active users. Reviewing TCO (Total Cost of Ownership) is your single biggest protection.
The real story behind $40,000
The price doesn’t reflect the cost of building it. It reflects the cost of what you don’t know.
Every question you don’t ask becomes money the vendor keeps for themselves.
CODEFAIR was built to close that gap.
Want to know if the quote you got is fair? Upload it for a scan — from just $180 »