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View Full Version : Hourly Rate versus Flat Rate


MrMille
06-15-2007, 12:05 PM
What do you guys use, and why?

I'm Hourly, but considering going flat rate, as that what my competition is doing.

Bryce W
06-15-2007, 05:58 PM
I am X amount for the first hour, and half that for every hour after that for my onsite fixes because I want to be able to charge a small amount if it takes only a few minutes to fix, and be able to charge accordingly if i takes longer. I always tell my customer that I expect it to take X longer which should now put the price at $XX, so they dont get any surprises.

However, for some tasks where I know how long they will take (such as a format/reinstall) then I charge a flat fee.

I have never really experimented with going fixed fee for my usual onsite jobs. I guess it could go both ways, you could get paid more for a small job, or it could be a big job and you get paid less. Anyone else using flat fees? Im also curious how this works out for you guys.

greggh
06-15-2007, 06:46 PM
We do the hourly thing. A lot of people are switching to fixed/flat rates. I am on the fence on this one. It will take a bit more research and trial before I make a solid decision.

tkrabec
06-17-2007, 05:35 AM
For most things I think that Hourly is the way to go, you're not rushing to get the job done. I've been doing many many Scans recently. I've been giving estimates on how long it will take to do the job. I ask several questions, the age of the machine, if they have dialup, dsl, or cablemodem, I try to also get an estimate of how slow it is and how much ram it has.

I.E. A standard 2-3 Year old PC with 256 will take about 1.5-2 hrs to install AVG & AvgAS update and scan the machine. the same machine with double the ram rakes about 1-1.5hrs, on dial up the updates alone take an extra 45minutes to hr and 15 minutes.

MrMille
06-17-2007, 11:21 AM
People always ask me how long it will take.

Which should suggest to me, that I could go flat rate (if I knew how long the piece of string was) :D

I should have put a poll on this thread.

PorterComp
07-04-2007, 06:20 PM
I have charged both ways. We've experienced with charging flat rates, but generally we ended up loosing out on a regular basis. Sometimes we got lucky, but most of the time it was a loss.

Currently, Hourly for most things. Onsite Always hourly as it restricts you to that one client. In-shop, it depends on what you are doing. If it's a reload that I can do something else while doing it, then I'll charge a set fee.

Tip: we charge a minimum half hour bench fee for in-shop stuff and a minimum fee of one hour if onsite.

However you decide to bill, make sure you let your customers know UP FRONT, how you are billing, it saves alot of headaches later.

Good Luck

Bryce W
07-05-2007, 01:50 AM
I have charged both ways. We've experienced with charging flat rates, but generally we ended up loosing out on a regular basis. Sometimes we got lucky, but most of the time it was a loss.
What type of work were you doing where you got burnt? What was a typical example of it going bad?