Originally Posted by Georgann
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Does anyone bill strictly by the month, doing pre-agreed upon jobs (results)? This would be a retainer relationship, but without the micromanaging of billable hours (or quarter hours). In consulting it's called value pricing. I guess it would be called the same here. Quote a set price for a specific job. Or, is that not as profitable as billing by the hour?
I haven't 'opened' the door to my business so I don't yet have a sense what works best. If anyone here has done billing both ways, I'd sure appreciate hearing from you on the differences, the advantages of one over the other, etc.
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I do quote "per job prices" for certain projects, but in most cases I bill by the hour. Also, payroll is billed on a set rate rather than hourly. I have a base rate and then a per employee rate on top of the base rate.
I track my hours for all jobs though no matter how they were billed, so I can check job profitability. Otherwise I wouldn't know if I was underestimating my projects.