[James Mitchell]

I am looking for the most common billing method for our industry. There are always times where we will use a different method, so I am not looking for the exception but more the 'rule'. Below are the detailed descriptions of what I classify everything.

Hourly: This is where you track your hours and bill them based on that. (ie. This is where you charge $xx/hr and bill exactly what time it takes you.)

by Project: This is where behind the scenes you evaluate the time it'll take to determine a project price. You quote that price and then regardless of the time it takes you bill the quoted price. (ie. You quote $2,000 based on a 25 hour project and even though it only takes you 19 hours you bill $2,000.)

Residual: This is where you likewise determine a project price, but then arrange to have your client payout a certain % per month (or timeframe) based on it. (ie. You quote $10,000 and arrange for the client to pay you say 10% or $1,000 per month for the next 10 months.)

Thanks!

This post has been edited by JPMitchell: 22 June 2007 - 05:24 AM

[Steven Gardner]

I often use a market value pricing style where i check the local web design market for their pricing and then slightly undercut them.
When i am doing bits and bobs i will charge per hour but usually on projects its market value pricing for me.

[supasnail]

I charge per project - but the project cost is based on the hourly rate I need to charge based on the number of working hours per week and my cost of living... then a bit more depending on competition rate. I don't always undercut the competition as I often believe that I can provide a better service than 'some' competitors.

[Steven Gardner]

I really need to as i have less experience in the industry but i believe my product is of a higher standard than most and therfore in the near future when i am bit more established will reconsider my rates.

[James Mitchell]

Here is the article I wrote, after gathering this data from multiple forums.

Dollars & Sense: Setting the Perfect Rates

Enjoy

[pgo]

Per project.

Unless it's a small thing. Then I charge hourly.

[Catalyst]

In my experience in several other business fields, if you charge more than your competition you usually get more work. It's odd I know, but true.

[pgo]

Catalyst, on Sep 21 2007, 04:08 PM, said:

In my experience in several other business fields, if you charge more than your competition you usually get more work. It's odd I know, but true.

I'm willing to be that it's more of a parabolic curve.

Basically... Charge peanuts, you won't get any work. Charge less than the competition, you'll get more work. Charge the same or more than your competition, you'll get even more work. Charge twice your competition, you won't get any work.

[harleyathison]

JPMitchell, on Jun 22 2007, 05:23 AM, said:

I am looking for the most common billing method for our industry. There are always times where we will use a different method, so I am not looking for the exception but more the 'rule'. Below are the detailed descriptions of what I classify everything.

Hourly: This is where you track your hours and bill them based on that. (ie. This is where you charge $xx/hr and bill exactly what time it takes you.)

by Project: This is where behind the scenes you evaluate the time it'll take to determine a project price. You quote that price and then regardless of the time it takes you bill the quoted price. (ie. You quote $2,000 based on a 25 hour project and even though it only takes you 19 hours you bill $2,000.)

Residual: This is where you likewise determine a project price, but then arrange to have your client payout a certain % per month (or timeframe) based on it. (ie. You quote $10,000 and arrange for the client to pay you say 10% or $1,000 per month for the next 10 months.)

Thanks!

Hi,
I have checked all the discussions and i am agree with Steven Gardner and Supasnail comments. And I personally think that competition is everywhere but when provides quality work then it pays accordingly.

[Locksmithcharlottenc]

I think it depends on the hourly rate I need to charge based on the number of working hours per week and my cost of living.

[iPhoneUnlock]

If you charge more than your competition you usually get more work. It's odd I know, but true.

[howtodress123]

I charge per project - but the project cost is based on the hourly rate I need to charge based on the number of working hours per week and my cost of living.Then a bit more depending on competition rate.

How To Dress For Your Body Shape

This post has been edited by howtodress123: 22 August 2011 - 09:33 AM

[jim1234]

Good discussion:)