Charging Per Hour vs Per Project

How will/do you charge your customers for the work you do? By the time you spend on specific tasks or the results of those tasks?

Here is an exercise that I run through with many of my clients.

Firstly, write a list of all the tasks — and I mean, every task — that you have to complete for a particular client (column a). Then, in the next column (column b), estimate the time it takes/will take to complete those tasks. Next to that (column c), write down how much you’d pay yourself, per hour, for that task. Finally, multiply column b by column c.
You also need to ensure you include any external costs, such as materials and outsourced work.

Here is a simple example of the table that I mocked up for a fictional logo designer.

My Preference

Firstly, there isn’t a one size fits all approach, but I do prefer a price per project more than charging for time spent. The reason for this is because I’ve seen, all too often, clients of freelancers disputing the amount of time that is needed on a particular task. Results driven invoicing is much easier to measure. For example, “I will do this for this much, by this date” is crystal clear, to all parties, what your client will get in return, irrespective of how long it takes to do. Take the table above. The client of this fictional logo designer knows what their getting and is happy to agree. If it only takes you 5 hours to do, then so be it. The client is still happy.

Action Point

Firstly, what would you do, if you were the fictional logo designer in the table above?

Now it’s time to replicate this for your business. Create a table for an existing or new project and decide on whether to set a fixed rate or to quote the project hourly.

I will happily talk through your findings with you, if you contact me here.