Tuesday, July 13, 2010

Better Way to Pay

> I recently spoke to a potential client. He wanted to know what I charge by the hour. I learned a long time ago, that's the kind of question that can ruin the chance to even be asked to submit a proposal for a design project. 
> I explain that I don't charge by the hour for my work. Here's what I do: I review the project, and submit a price for what it will take to come up with a creative solution from start to finish. If someone charges a dollar amount per hour, doesn't that give him incentive to work more slowly, so he makes more money? That doesn't seem right to me! I picture the person who moves like molasses, and my thought is, "he must be paid by the hour." 
> In my proposal, I say: "Here's what it will cost to complete your project, with these parameters (which I list). If the parameters change, so will the cost, and I'll let you know before proceeding if your requests will affect the price." Doesn't that give me incentive to work faster? You bet it does! Then we're both happy with the project, the timeline and the price.
> When I explain it this way, I get a lot of very positive responses, that this seems like a much better way to handle it. I think so!

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