Consulting Tip #5
January 14, 2009 at 4:12 am Leave a comment
You’ve been billing hourly a while. You’ve proven to the client that you always have their company’s best interest at heart, and always consider ROI. The client trusts you to simply report the hours you bill. One day, the client says “I need an estimate” on a small task or project. What should your response be?
Without question, it should be: “Sure, no problem.”
Don’t ever fight a client on this. Agree whole-heartedly like you can’t wait to give them estimates. Most battle-hardened service professionals know that estimates and flat-rate scenarios can be painful for either the client (over-estimated), or the service professional (under-estimated), but there are some environments where the client needs to feel more in control.
We’ve all gone into a store and bought something without checking the price tag when times were flush, and have also checked 5 different stores and looked at every price tag for the lowest price, when times are lean. Clearly, times are lean right now, and while some clients might be recession-proof, many of your clients are looking to control costs.
Hopefully it’s not a lack-of-trust issue. Either way, the client is feeling insecure. This is when you want to be their hero and come to the rescue, and bundle them up in a warm and comfy blanket. Be there for them. After a little while, they will revert to open billing again because estimates and flat-rates slow the process down. Remember, clients should be life-long, and you shouldn’t ever feel offended or lament having to account for your time up front.
Entry filed under: Tips For Consultants. Tags: consulting tips, Fixed-price billing, flat-rate billing, flat-rate vs. hourly billing, Open Billing.
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