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Subject:Re: Misc Contracting Tip About Pricing From:Robin Griebel <rgriebel -at- IS -dot- ALLTEL -dot- COM> Date:Thu, 30 Nov 1995 10:05:46 -0600
At 02:54 PM 11/29/95 -0800, I wrote:
>>For example, if a customer wants to pay you $200 for a project that will
>>take you 10 hours and you want to do the project even though your hourly
>>rate is $40/hr, in the final accounting, charge them for only 5 hours and
>>show them that they received 5 hours free of charge instead of lowering your
>>rate to $20/hr.
Richard Mateosian asked:
>If you and the customer have agreed on a fixed price, where does hourly rate
>come into the picture? ...RM
I suppose it all depends on how you work. The contractor I knew contracted
by the hour, as a rule, and tried to avoid working for less than his usual
rate. Even if he worked for a fixed price, he showed his hourly rate on the
billing to remind the customer of the real value they were getting. If
you're not that concerned about your hourly rate, than it doesn't really
matter. However, it *seems* that his method could be helpful if you agree
to a fixed price although you would prefer to stick to your hourly rate.
But, hey, what worked for him may not for everyone. I wonder if other
contractors have tried this.
