Comments on: Charging Project Pricing Versus Hourly Rates

By: Jamie

Jamie — Sat, 08 Aug 2009 17:26:54 +0000

Well, I’m not a freelancer, but here’s how it works at my company: we give clients a quote, which is usually a range (for example, $7500 – $10,000). Then we bill hourly for work, maintaining a spreadsheet that details how we spend the time. When it’s time to bill the client, the project manager usually plays with the spreadsheet a bit depending on a number of factors. For example, if the bottom end of the quote is $7500 but we only bill $5000, he’ll bump it up to within the quote range. If the client is especially difficult, he may also bump it up, and so on.

So, I think the best solution is a mix of both. Seasoned web developers know how approximately how long a particular project will take. That’s why we give a quote. Then, the client knows the range of the final bill, but they can still get an hour-by-hour breakdown of the work (which clients love to see, in my experience).
.-= Jamie´s last blog ..I am still alive =-.

By: Bathrobewarrior

Bathrobewarrior — Sun, 02 Aug 2009 03:20:39 +0000

Excellent advice!
.-= Bathrobewarrior´s last blog ..Some tips on images for the web =-.

By: Clay S

Clay S — Mon, 29 Jun 2009 16:02:29 +0000

Great post! Project pricing is our preferred method as well, and I think it works out well for both us and our clients. We’re bound to produce a final deliverable and it also eliminates any guesswork or suspicion on their end, where they worry if we’re charging too many hours, etc. We also try to even avoid charging hourly for support and try to cover that cost with a monthly licensing fee. About a year ago, I wrote a post on our approach to billing and service that you might find interesting: http://www.newmediacampaigns.com/page/when-companies-dont-fear-customer-support-everybody-wins
.-= Clay S´s last blog ..Moving your script tags: The quickest way to improve site performance =-.

By: Project Pricing vs Hourly Rates | Design Shack

Project Pricing vs Hourly Rates | Design Shack — Thu, 25 Jun 2009 08:00:40 +0000

[...] View Post [...]

By: Sam Dunn

Sam Dunn — Tue, 23 Jun 2009 23:46:24 +0000

@Ezrad Lionel
I’m baffled as to what kind of job would take you 1000 hours, but you would only be willing to get $30 for.

By: Ezrad Lionel

Ezrad Lionel — Tue, 23 Jun 2009 23:37:24 +0000

I sent a client an invoice for 1000 hrs at 0.03/hr I haven’t heard from him since.

By: Brian

Brian — Tue, 23 Jun 2009 09:27:21 +0000

It is my view that a predetermined price allows the client to accurately budget for the project. In pricing a project it would be imperative that one would be very specific about the service offering and the extent of it. The project must be clearly defined by the objectives being set out very clearly. Should the contractor Cleary indicate the extent of his offer the client and the contractor have a clear understanding of what is required and or offered with a set price.

One of the negatives of project pricing is the time one allocates to the quote. The abuse of this information is also a concern; nonetheless it is your brainchild and if it is well presented it will pay dividends over the long term. Good business is not just about today but every day. People who abuse others time and knowledge rarely succeed in the long term. Should you dedicate time to project pricing over time it will offer you a more refined product portfolio. Project pricing should also illuminate shortfalls in your product portfolio and the areas your business will need to allocate recourses so as to allow you to become more competitive.

Should the quote be clearly laid out this will also give the contractor a better idea of the time and resources it would require. The best contract between two people is not the paper it is written on but that both parties get what they want, a fair price for good work, clearly defined.

In my opinion a definite price for a definite service is best.

By: Tom

Tom — Tue, 23 Jun 2009 04:29:00 +0000

I think charging by the project is the best way. Here’s why. If you charge hourly, from hour one, you are at odds with the client – you’re trying to maximize your income while they’re trying to minimize your hours. Who’s standing over you with a stopwatch making sure you’re not getting paid for a bathroom break? If the client doesn’t trust you, then it may be tricky getting your money.

On the other hand, charging by the project alleviates these problems – once a price is agreed upon, work can proceed as fast as possible toward a definite end result. It is in the developer’s best interest to focus and get it done ASAP, and it’s in the client’s best interest because they know the definite cost.

Just my $0.02. I’ve tried both methods and the second felt more fair to me. Luckily, both clients trusted me, so I had no problem collecting payment.

-Tom

By: In a Slump? Try Something New! « Icosidodecahedron

In a Slump? Try Something New! « Icosidodecahedron — Mon, 22 Jun 2009 21:33:57 +0000

[...] be making a comfortable amount. The price, really, depends on efficiency. Build Internet’s post on the issue really hits the nail on the head, when it comes to hourly (or per-period) wages: 20 [...]

By: FreelancerCrowd

FreelancerCrowd — Fri, 19 Jun 2009 10:31:25 +0000

I defiately prefer the “per project” way.
I guess I just love too much chatting and social networking menawhile.