I hardly ever bill by the hour! I prefer to use value-based fees. Why?
- Because hourly billing turns both of us into clock watchers.
- There is a cap on your investment. You know exactly what is to be spent, so there are no surprises.
- It is unfair for you to have to make an investment decision every time you need my help. Is this an issue that justifies a $300 visit or a $100 phone call? You should never be put in that position.
- We’ll never have to discuss whether certain time like travel time or report writing is billable, or what work should be done on or off site.
How do we calculate fees?
We both sit down and decide on the results you want to achieve and what I have to do to make it happen (The deliverables). Together we work out what value the business will receive from the specified deliverables. And together, we both agree on the fee. That’s the only way that you can decide if you’re getting value from your investment.
If you don’t get all of the results we agreed on, we don’t collect the full fee. Payment for results. That way, we’re both happy.