Why we don't sell hours (Do you?)(medium.com)

over 4 years ago from Keni Teh

  • Marcel van Werkhoven, over 4 years ago

    This is basically what SCRUM/Agile is like. Clients buy a chunk of development time and set priorities. Challenges with this approach with a fixed pricing model is that you're limiting the number of projects you can work on at the same time. Also I imagine that clients comparing vendors are confused by this approach. Agency A charges me $3000 for a website, while Agency B charges me $8000 for a week of work of 4 people. Next to that, Say a project goes fine on monday and tuesday but on wednesday 'shit' happens. You can't transfer to a different project until monday.

    What works best is to basically set goals and a budget ceiling with your client in advance but don't limit yourself to a pre-defined timeframe or a single pricing model even within the scope of the project. Building something you've done plenty of times before like a WordPress site can be a fixed rate while the custom tailor made animation might be billed hourly.

    Also give your clients an option to extend the scope of the project. Like, well after one iteration as agreed this is the design, which is o.k. but we feel it could be improved with a little more time and better photography which costs 'X'.

    As someone else mentioned. Clients are usually not up front about their budgets. And most have no clue what anything costs. The quotes they receive might also vary from $300 to $10000 which isn't helping.

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