Original link: https://www.ixiqin.com/2022/05/17/looking-for-me-to-help-you-do-things-how-to-charge/
This article is mainly used to explain my billing model and ideas when customers who come to my door find me.
TL;DR
My billing model is time-based, I will use Clockify to record time for your project, and Clockify will complete the cost calculation. My current hourly unit price is $300/h (converted to RMB at current price) .
After completing a project or the accumulated time of the project exceeds 10 hours, I will send you the billing list (refer to the file below for the billing list), and you need to pay me according to the billing list (if any item in the billing list There is a problem with your mission, we can re-discuss & evaluate)
Why not do piece rate billing?
The advantage of piece rate is that from the beginning of the project, the budget is clear and your expenditure is clear. But in my opinion, the problem with piece rate billing is putting you and me on the opposite side.
You can simply think about it, if a project is 10 hours by the time system, then there are three situations in the case of piece-rate charging:
- I estimate that the piece rate quotation exceeds 10 hours: at this time, you will think that I am bluffing you, why is this thing so expensive. And for me, time is out, and the rest is earned. You are not satisfied, I am satisfied.
- I estimated that the quotation was quoted for exactly 10 hours : this time is the most perfect situation, you will not feel that I am prostituting for nothing, for me, it is acceptable without spending too much time. You are satisfied, I am satisfied.
- I estimated that the quotation was quoted in less than 10 hours : this time is a good deal for you, but for me, I will feel that I am at a loss. At this time, you may choose not to engage in some dispensable details. Or just do whatever you want. Do you think you earned it? But have you really earned it? You are satisfied, I am not.
It can be seen that there is a one-third probability that both you and I will be satisfied when billing is based on pricing. There is a two-thirds chance that one of you and I will be dissatisfied.
Furthermore, there are two implicit premises here:
- The requirements of the project do not change. But not making changes is not a good thing. If we find in the process of project development that there is a problem with the design of the requirements in the early stage, and we need to add functions, we will need to add extra money. If we don’t do it, the product cannot meet the requirements.
- The time estimation of the project is very accurate: the time estimation of the project needs to be carried out with a very perfect PRD. But you should not be the kind of very perfect PRD (perfect refers to considering all possible situations, a PRD may be a dozen or twenty pages of PDF kind). In the case of imperfect PRD, the estimated time cannot be accurate. It can only be evaluated according to the time beyond the project (extended reading: Hofstadter’s Law ).
The benefits of hourly billing for you and me
The disadvantages of piece-rate billing have been discussed earlier, so let’s talk about the benefits of hourly billing for you and me:
- Billing transparency : When I do every job, I will record it in Clockify, so you can know how much time I spend on each step and day. Instead of paying a fixed price, you can pay based on the time I spend. It’s not a bad thing for you and me.
- Move in the right direction of the project : Because we are no longer the opposite, then we can move towards the direction of the optimal solution of the project. If a detail can make your product experience better, I will choose to add this detail for you. Make your project experience the best it can be.
Of course, hourly billing also has disadvantages:
- Budget is not clear : hourly billing only gives a rough budget, the actual billing is billed according to the time consumed, so for projects with strong budget requirements, this can be a problem.
Summarize
If you want piece-rate billing, you can contact me without getting involved. For items that are piece-rate billing, I will absolutely refuse. And if it is time-based billing, and you can accept my offer, then you are welcome to contact me through WeChat, email , etc.
This article is reprinted from: https://www.ixiqin.com/2022/05/17/looking-for-me-to-help-you-do-things-how-to-charge/
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