Hourly Rate Pricing Option

We introduced this alternative to the traditional lump sum quoting as a potentially fairer option and have been surprised at how popular it has been.

Summary

We now offer this hourly rate option with an initial estimated capped total number of hours which we do not work past without our client’s agreement.

This capped total is lower than the lump sum charge for the same job.

The hourly rate option is fairer than the lump sum quoting system for all parties. It safeguards the client against us over thinking potential problems and consequently overquoting and protects us against nasty unforeseen things that cause extra work.

In more detail

Lump sum quotes always include a little extra amount to hopefully cater for nasty surprises that cannot be accurately priced for when quoting.

This means that if the job runs perfectly our client will be charged more than they should. But, if the job is particularly difficult and involves a lot more work than anticipated, we end up getting paid less than we should.

So, the logical solution to this is to just charge for the work that we do which is what this hourly rate option is all about.

The obvious potential problem is how do our clients know that we’re not overstating the time we take and therefore overcharging them. We try to address this issue by:

  • Initially capping the number of hours at a set total. This gives our client a figure to work with and a total expected expenditure for their budget. We do not work past this point without prior approval from our client.
  • We keep a record of the time we have spent doing what tasks along with notes of what’s complete, what’s outstanding, who’s been asked for what and when they were asked. So our clients can keep a check on how things are progressing.
  • Just being honest. We value our clients and would not jeopardise working relations to make a quick buck even if we were inclined to. It just doesn’t make business sense.