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A lot of my clients fit this. What I’ve done to “solve” it for us, is to stop charging for hosting and “services” each month and realistically price it in to th
by christoph 7y ago
A lot of my clients fit this. What I’ve done to “solve” it for us, is to stop charging for hosting and “services” each month and realistically price it in to the initial contract. A lot of our projects are between £5k and £20k. I don’t want to be raising invoices for £20 or £30 per month. Their corporate finance department doesn't want to be processing small amounts each month either. All these projects have limited lifespan - 1 year or 2 or most. It makes sense for all involved to just price it in early. They like it, I like it. Sometimes projects run longer, sometimes they run short, on aggregate, it seems to work for us and them. Yes, if something goes nuts and costs thousands a month, that’s a conversation you want to have quickly, but in that scenario, the traffic they are getting is leading a different conversation anyway. YMMV.
- asdfasgasdgasdg 7y agoYou could align incentives this way by structuring the deal to include a three year "service and support" component. You can build that in to provide a fixed cost yet at the same time have the flexibility to charge more if your cost structure has changed after the time passes.