Rates and fees.
THE OPTIONS
Hourly Daily Fixed fee per project Retainer
HOURLY
Transparent, and it penalises efficiency.
The faster you work, the less you earn.
FIXED FEE
Better for you if you estimate well, and better for the customer, who knows the cost.
Requires a clear scope.
THE SCOPE POINT
Fixed fees fail when scope expands.
State explicitly what is included and what is not.
RETAINERS
Predictable income for you, predictable cost for them.
Define what is included per period.
WHAT TO NEVER DO
Quote without understanding the work Quote a fixed fee for an undefined scope
WHAT TO BUILD IN
A margin for the work taking longer than expected.
It usually does.
FOR ADDITIONAL WORK
State that changes are quoted separately, before starting.
WHAT TO REVIEW
Your effective hourly rate on fixed-fee work.
That tells you whether you estimated well.
