I conducted a market survey for my niche and got a few responses back. Something that has me concerned is that one of my questions was about rates. I asked, for the services I offer, did they prefer an hourly rate or a flat rate. I received a varied answer from all those who participated. Some agreed that an hourly rate was best while a couple said they would prefer a flat rate. My question is this, based on the fact that I am targeting the wahm community, and most are on shoestring budgets, would you recommend using a flat rate or an hourly rate? I can't seem to adjust any flat rate fees to meet the income I need to bring in. When I tried to base it on my hourly rate, the flat rate fees were too high, especially if someone doesn't utilize the hours, but for the services I am offering, I think that a flat rate might work better. I would really love some feedback on this, as you can see, I am rambling on about it so I'm sure that you are probably just as confused as I am.

Thanks so much.
Debra Nail

Hi Debra, I can't recall who asked this question, but if you check back in the recent archives of this section you'll surely find it - in any case, I think it makes sense to offer both, really, especially since you, the business owner, are uncertain as to which to start with - and there's no reason why you should limit your business growth by choosing one over the other. Once you're more established you can always shift your billing practices to whichever you find most suitable, if need be.

Doesn't the flat rate vs. hourly work out to essentially the same (with a bit of give and take in mind when it comes to retainers) rate anyway?

You really need to set your rates to a reasonable place where you're going to be making a profit, or at least breaking even (for the value of your time) or there's no point in being in business in the first place.

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Why not offer a monthy retainer? That's what I do. I have a set hourly rate and then for my clients who are budget conscious I have a retainer available for them. It's offered at a lower hourly rate and the more hours they buy the less they pay per hour. Your retainer can be whatever you set it for and you can charge whatever you feel is fair and profitable.

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Shari Sultana
Online Business Manager (marketing for retail ecommerce)

Thanks for the suggestion. I have added the option of hourly or retainer to my website. Thanks again.

Debra Nail