Here’s a short 2 minute video that hits the nail on the head with respect to the concept of hourly vs fixed price billing.
At Schulz Consulting we’ve converted all of our work over to fixed price with a money back guarantee. We no longer track hours or provide silly quotes like “our time will be between x and y but if it is less you pay less”.
The major reasons we don’t bill hourly:
- An experienced professional should know what the work is going to cost
- An experienced professional will take the time up front to understand the desired outcome
- An experienced professional will back their work with a money back guarantee
- Quoting a fixed price requires us to work with you to fully understand and document the work to be performed
- No surprise bill(s) showing extra hours
- If a consultant quotes “it will be between 10 and 20 hours” – guess which number the consultant is thinking (Hint: 20+) and which number you’re thinking (Hint: 10 or less).
- Any consultant who doesn’t understand the work can quote you an hourly rate which essentially “learns on your dime”