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Had a talk with my CPA last week that made me rethink how I price my services
She told me I'm leaving money on the table because I charge by the hour instead of by the project, but I'm worried clients won't pay a flat rate if things run long. Has anyone here switched from hourly to project pricing and had it work out better?
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noah91416d agoMost Upvoted
Yeah the thing about flat rate is you gotta get really good at estimating. I mean if you underbid you're basically working for free which is worse than hourly. But honestly most clients like knowing the total upfront so it can actually help you close deals. Just pad your estimate a little for those "what if" scenarios and you'll probably break even or do better. Maybe start with a hybrid model where you do flat rate with a clause for major scope changes, that way you're covered if things get wild.
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gavin_knight3916d ago
Back when I was helping my mate with his little landscaping side hustle, he quoted a flat rate for a garden overhaul. Told the client 800 quid, thought he had it all figured out. Turned out there was this massive concrete slab buried under the soil that took him an extra two days to dig out with a hired breaker. He ended up doing it for basically minimum wage after the gear rental ate his profit. That hybrid model idea sounds smart, you need that escape hatch when the job throws a curveball.
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