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Thread: Hour Vs Project fee

  1. #1
    Big Boi
    Join Date
    Jul 2001
    Rijeka, Croatia
    There are many questions like "how much and in which way should i charge my work". I was thinking something about that and the way that i charge. I do it by project and how big it is not by hours. I just see it like this, you write that you spent lets say 30 hours doing this and that and write it on a bill, and then your clients sees it and i he just sees it somehow that they will always question that hours and that they will be sceptical about it and think that i am saying that i worked more then i realy did. Then again I really dont work for some hours without stopping and it would be hard to mesure it. When i put fixe fee for something i feel that this puts more confidents in clients and they know in the begining how much they will have to pay and i cannot say i had to work more and raise the price beacuse i tought that something would be easy but it wasnt so i had to spent mora working hours. I put a price and work till i do it, maybe it is somewhat not fair on me and my co-workers but I feel that this way my clients are happier....What do you think, and what do you do on this matter??

  2. #2
    President and CEO of nothing.
    Join Date
    Feb 2001
    I haven't done a lot of my own billing, but my Uncle has owned and operated his own sign shop for 25 years now and while I worked for him for a couple weeks I learned a ton about running a business. He told me that no matter what, and this may be hard depending how new you are to the business but I think you have quite a bit of work under your belt... anyway he says that he always gives a client a quote for a project and then if it takes longer then he thought he just eats the difference and if it takes less he brings the price down. This way clients always know the MAX they are going to end up paying. For your own personal interest you should definately know how many hours you are putting in but really, like you said, usually by giving your client how many hours you worked they will be skeptical. It's hard to realize how long anything takes to do unless you have done it before. Doing a bunch of simple things can take a long time like for example a painter...You have to buy the plain board to paint, then it has to be primed and sanded and brushed and enameled and THEN you start with the sign work! The sign work requires a computer and high end cutter that rips the vinyl then you have to pay the person to put it on with precision. Sure in the end you just see a pretty looking 2' x 2' sign but like anything manufactured there is a lot behind it. Just like manufacturing a webpage.

    Hrm... I seem to be delving into off-topic type stuff.. =)


  3. #3
    An Inconvenient Serving Size hurricaneone's Avatar
    Join Date
    Mar 2001
    You know where
    Had a meeting with a potential customer yesterday, and he was interested in ballpark figures. Not really liking to hand out numbers (better to do it with a project outline/contract - looks like more for the money, I think, anyway...), but 'cause this guy came from a personal recommendation, we gave him a price based on our experience with similar organizations. Then he pulled out this pretty big (read huge) product list.

    Moral of the story. I too like to offer fixed-cost pricing, but make exactly sure what you're jumping into before throwing around numbers.

    Oh yeah - the guy had a good chuckle when he saw my face, and suggested we adjust the estimate to suit the list. Enough said.

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