Re: Freelance programming
Re: Freelance programming
- Subject: Re: Freelance programming
- From: Daniel Hedrick <email@hidden>
- Date: Tue, 4 Nov 2003 08:00:33 -0600
On Friday, October 31, 2003, at 09:53 PM, John Randolph wrote:
you can very often close the deal by being the more expensive option.
I have traditionally billed clients at $$/hr, but recently (in the last
year) I read "Getting Started in Consulting" by Alan Weiss. I found it
to be an extremely helpful book for constructing my new pricing
structure.
There are two fundamental pricing philosophies he presents which I have
begun working with...
1. Always provide one pricing option that is "comprehensive and over
any stated budget". As part of your presentation, build an option that
goes above and beyond any expectation the customer has and price it out
accordingly.
1. Always (*ALWAYS*) work on a value-based fee or a per-project fee.
Basically, bill every project at a flat rate. This can get you in a bit
of trouble if you don't have a good handle on your time management
skills. It can also significantly increase your pay. The most important
factor in presenting value-based fees is demonstrating the value to the
customer -- once they realize the value, then billing a flat fee is
actually in their best interest (since they can see exactly what
they're getting and exactly what they spend to get it).
These two points took me quite by surprise when I first came across
them, but as I have embraced them, they have served me extremely well.
-daniel
email@hidden
--
There are 10 kinds of people in this world...
those who understand binary, and those who don't.
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