“If you are in the professional-services business as a consultant or a freelancer, you might know that various practices fall under professional services such as Lawyers, Doctors, Plumbers and much more. These all are professional services, and all of them bill differently. Per feature, per hour, per day, per week, per project, etc.
Hourly is the assumption, generally for freelancers. I often hear the client question, “What is your hourly rate?” And the answer to this question is that I truthfully do not know.
Different professionals bill differently. I have charged clients per hour in the past, but now I charge them 100% upfront.
Why to bill 100% Upfront?
Usually people dislikes the unknown. The unknown means having a risk. I think that business owners and entrepreneurs are risk-averse. When it comes to money, people do not want to expose themselves to risk intentionally. Unexpected or unknown costs are dangerous when you own a business. That’s why billing 100% upfront is necessary.
Do Not Punish Efficiency
It’s extremely beneficial to work in a fixed-scope-fixed-price business model for you and your clients because it isolates income from time. On the contrary, per hour billing punishes efficiency because the faster you work, the less is your precision.
With a fixed price, the better is your effective hourly rate, the faster is the speed of your job. It helps you in earning more, and the clients get their projects finished faster.
It prevents blown budgets and allows you to accept 100% upfront payments. Because you have agreed to the price and the work to be done, it makes sense to pay in full upfront. It eliminates the stress of clients who are holding payment as a hostage, prevents Scope Creep, and establishes a collaborative relationship with the client. The parties do not have to worry about late or missed payments.
Healthy Projects For Healthy Business
Upfront payment, fixed-price and fixed-scope requires a shift in mindset, it might even be intimidating. Billing 100% Upfront drastically improves your client relationship as well as your sanity and the financial health of your business.
How Vowelweb operates its clients?
VowelWeb is a website development company in Nagpur, India. We are a team of 15 people. We understand our client’s need of having a Business Website, and that’s why we fulfil their needs. We provide our clients with complete website solutions at reasonable prices. We do ask for 100% Upfront Payment from our clients whenever we undertake any project from them because we offer quality services. VowelWeb works for all the professional services.
Do share your views with us. You can mail us at [email protected]”