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They benefit because they know the cost upfront and don't have to worry about overruns I mostly agree, but just want to point out that cost overruns aren't a f
by leepowers 12y ago
They benefit because they know the cost upfront and don't have to worry about overruns
I mostly agree, but just want to point out that cost overruns aren't a function of charging an hourly rate. Overruns are the result of poor estimates of the time/resources required, or a soft or changing spec. Having a good initial spec is a must. But if the spec changes, and results in extra work, the per-job price should also change.
Per-job pricing really shines in areas of high competence. When productivity is high, instead of charging based on the rate of production (dollars per hour), charge based on the business value of the final product. Assume widget X is worth $1000 to the customer. From their perspective it doesn't really matter if it takes 1 hour (high productivity) or 100 hours (low productivity) to complete - the received value is the same. A high performer who charges for just the hour is leaving money on the table.
The reason this works well is because it benefits everyone. It benefits you because you know what you are going to make, you don't have to worry about the client saying "oh can we make this one change it will just be an extra hour right?".
Even for per-job pricing don't be afraid to ask for further compensation if the scope expands. Otherwise you're leaving money on the table. If the original spec is for X and it expands to X + Y, don't do Y for free. Few businesses will give away a non-trivial Y just because a customer purchased an X. Freelancers should be no different.
Repeat business doesn't require some arbitrarily long length of time to pass in order to qualify as "repeat business". If a client comes back on the same project with new ideas and features, that's an expansion of scope, and an instance of repeat business.