If you are in the business of selling time as opposed to selling merchandise, whether the strategy of fixed fee billing or hourly rates is best for your business, one thing is not going to change – the demand from customers or clients for higher price certainty. Just because a client is not paying on the basis of hourly rates does not mean that the length of time a project or product actually takes to produce or make is no longer relevant to the quote given.
Let’s dispel any myths that many of those not in private professional practice or the service industry seem to believe, professionals do not love hourly rates. Most professionals hate the billable hour. Yet, as there are pro’s for billing fixed rates, there are also disadvantages, particularly the nature of certain services. Our focus in this month’s BAN Bulletin explores the pros and cons of both fixed fee and hourly rate billing.
As billing methods for service and manufacturing industries are intrinsically linked to time and the cost of time, look out for our forthcoming November issue of the BAN Bulletin where we look at the real cost of time, some harsh facts every business should know.
Click here to read our newsletter – The Great Billing Dilemma