[lbo-talk] p.s.

Wojtek Sokolowski sokol at jhu.edu
Thu Dec 1 07:45:35 PST 2005


Joanna:


> Freelance technical writers get paid for every hour they work, whether
> that time is spent in meetings or writing or loading software or driving
> to a meeting. Either that or they get paid a per-project sum that covers
> everything. I don't know whether that applies to all professions.

When I do consulting work I usually settle for a per-project sum, which in turn is based on the estimated number of hours (or work days) needed to complete the task.

There is a bigger issue here - how do you bill your clients? In most cases, there is considerable information asymmetry between client and provider, meaning that the client usually does not know what kind of service he/she needs, and who can deliver what kind of service. Therefore, if he/she was billed for the initial consultation, he/she could spend considerable amount of money to merely find out what kind of service he/she needs, on the top of the actual service charges.

To deal with this problem, many professionals offer initial consultation "free" (of course that time is factored into the fees they charge later). There are two clear advantages of that approach - it lowers the barriers of entry into a contract for professional services, and it offers a competitive advantage vis a vis those providers who do charge for the initial consultation.

Therefore, my counsel is to offer the initial consultation free, and then factor in that time into the fee for contracted services, but not as a separate item, but as a higher per hour charge or perhaps more hours.

Wojtek



More information about the lbo-talk mailing list