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Re: Questions - Going from Hourly to Per Project Basis?
Subject:Re: Questions - Going from Hourly to Per Project Basis? From:"Mike O." <obie1121 -at- yahoo -dot- com> To:"TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com> Date:Wed, 1 Oct 2003 11:09:36 -0400
Goober Writer wrote re weekly billing:
> Understood, but Geoff's approach/example was in
> response to the poster's mention of the client's
> perception that the contract is costing too much. Yes,
> your tactic works to weed out latency on the client
> side, but it is not a cost-effective approach.
Depends on your weekly rate. For example, you can offer a discount in
exchange for the stability and lower overhead of weekly billing.
Sometimes the client knows they need to offer me a rate higher than they are
comfortable with. In that case I can offer a discounted alternative by
converting the hourly rate to a weekly, and applying a discount n%, for
example:
(hourly_rate * 40) * (100 -n )% = weekly_rate
Their cost is fixed as long as they keep to their stated project schedule.
They get a discount and a fixed cost, and I get stability and simplicity.
This is a win-win deal for working with a small or startup company. But for
a big company it just blows their minds, because their accounting systems
(and their mindsets) are incompatible.
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