3. Decide on Your Business Model and Stick to It
Whether you choose a fixed or hourly fee strategy, it’s important to be consistent. Any changes to this could reduce your client’s confidence.
Gemma Hill of Bayswater Interiors says her firm uses an hourly pricing structure, as they feel it’s fair for both parties. “Clients only pay for what we’ve provided,” she says. “In the past, we’ve had projects where clients have increased the scope of our work, or changed their minds unexpectedly midway through the process, and expected us to start again to incorporate their new ideas, which ended up costing us money in lost hours. This way, we’re invoicing for work completed and are not out of pocket, and this is clear and fair to the client throughout.”
Nicholls, on the other hand, prefers a fixed pricing structure. “When we put together our fee proposal, we estimate the amount of time we’ll spend on a project, using similar jobs as a benchmark,” she says. “Once we’ve given our fee proposal, our fee doesn’t change unless the scope of work changes or there are unforeseen circumstances. We would then discuss this with our client and adjust the fee if necessary.”
Find out how Houzz Pro can help you run your business
Whether you choose a fixed or hourly fee strategy, it’s important to be consistent. Any changes to this could reduce your client’s confidence.
Gemma Hill of Bayswater Interiors says her firm uses an hourly pricing structure, as they feel it’s fair for both parties. “Clients only pay for what we’ve provided,” she says. “In the past, we’ve had projects where clients have increased the scope of our work, or changed their minds unexpectedly midway through the process, and expected us to start again to incorporate their new ideas, which ended up costing us money in lost hours. This way, we’re invoicing for work completed and are not out of pocket, and this is clear and fair to the client throughout.”
Nicholls, on the other hand, prefers a fixed pricing structure. “When we put together our fee proposal, we estimate the amount of time we’ll spend on a project, using similar jobs as a benchmark,” she says. “Once we’ve given our fee proposal, our fee doesn’t change unless the scope of work changes or there are unforeseen circumstances. We would then discuss this with our client and adjust the fee if necessary.”
Find out how Houzz Pro can help you run your business