Why we prefer to charge a fixed fee for projects
Every once in a while a client will ask us if we charge by the hour. There is no across-the-board answer to determine which billing method is the best, but after years of experience, we at Galaxy Weblinks decided that charging per project rather than per hour is the best and fairest way to please our clients. Here is why we think so -
Billing for Design Work
There’s an old story about an office building with a broken heating system. Several technicians took a look but couldn’t find the problem. Finally a retired maintenance man was called to come in. He spent a few minutes looking at the machine, then took out a hammer and hit it once. The heater started up and ran perfectly.
He presented a bill for $100. It said:
Hitting something with a hammer: Free
Knowing where to hit: $100
We approach design work the same way. When you hire Galaxy to build your solution, you are buying our skills and our expertise that we’ve accumulated over the last decade as well as the constant learning our people do to stay current with the latest tools and trends.
Hourly Billing is Unfair to the Client
Let’s say a client asked us for a piece of customized software (Custom Web Development)that integrated with their proprietary system. If we charged by the hour we would have to charge for the time required to understand your system. But you’re not paying for us to learn, you’re paying for a solution. By charging per project and only for the delivery of the solution, clients don’t have to worry about any time it takes us to adapt to your specific system.
A Flat Rate For Your Piece Of Mind
As a client the last thing you want to worry about is cost overruns. On an hourly contract there is always the danger that a job will take longer than originally estimated. What happens if this is the case? Will you get flack from your superiors? Will we have to cut features to stay on budget? It doesn’t make sense to put yourself in this position.
With a flat-rate contract you can have approval up-front and then relax, knowing you’ll get what you paid for.
When We DO Charge By The Hour
There ARE cases when it’s more beneficial to charge by the hour, and that’s usually when you need our programmers to make some kind of change to your system. With this type of work we’re not talking about design, and all of the up-front work has already been done.Instead of having to charge, say, $500 for a new feature that includes design documents and additional project management, we can just say, “this will take 2 hours and will cost $X”.
Our Work Is A Partnership
At Galaxy we learned a long time ago that if we keep our clients happy everything else takes care of itself. By charging on a per-project basis our clients know we’re all working together for the best possible outcome, and the entire project runs more smoothly.
Have specific questions or concerns? Ask us anything – we’re here to help. http://blog.galaxyweblinks.com/website-development/why-we-prefer-to-charge-a-fixed-fee-for-project/