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Pricing Structure Pros & Cons


Ruslan Galba - August 21, 2019 - 0 comments

Pricing Structure Pros & Cons

Pricing Structures Pros & Cons by @morejanda

Choosing the right pricing structure for your project can mean the difference between success and failure. 🔥🔥🔥

1️⃣ Fixed Bid: Fixed-bid pricing is a set scope of work with a fixed price. You tell the client exactly what you are going to do and exactly what it is going to cost.

2️⃣ Hourly: You and your client agree on an hourly rate. You track your hours and bill your client in regularly agreed-upon intervals (such as weekly or monthly).

3️⃣ Retainer: Retainers are also based on hours spent on a project. Typically, you give the client a discounted rate for guaranteeing you hours (usually by month).

4️⃣ Bucket of Hours: A bucket of hours is similar to a retainer, but the hours aren’t required to be used each month. For example, you could sell your client a bucket of hours at a reduced hourly rate and give them 6 months to use the hours.

5️⃣ Dedicated Resources: Slightly different from retainers, the dedicated resource structure allocates certain employees to a client for a certain period of time. Retainer structures buy hours. Dedicated resource structures buy people.

6️⃣ Partnership: Partnerships share the risk and the reward of a project. The agency performs work and their compensation comes when the work produces results for the client. These arrangements are often tied to sales and growth increase.

1. Fixed Bid. Fixed-bid pricing is a set scope of work with a fixed price. You tell the client exactly what you are going to do and exactly what is going to cost.
2. Hourly. You and your client agree on an hourly rate. You track your hours and bill your client in regularly agreed-upon intervals (such as weekly or monthly)
3. Retainer. Retainers are also based on hours spent on a project. Typically, you give the client a discounted rate for guaranteeing you hours (usually by month).
4. Bucket of Hours. A bucket of hours is similar to a retainer, but the hours aren't required to be used each month. For example, you could sell client a bucket of hours at reduced hourly rate and give them 6 months to use the hours.
5. Dedicated Resources. Slightly different from retainers, the dedicated resource structure allocates certain employees to a client for a certain period of time. Retainer structures buy hours. Dedicated resource structures buy people.
6. Partnership. Partnership share the risk and the reward of a project. The agency performs work and their compensation comes when the work produces result for the client. These arrangement are often tied to sales and growth increase.
Choosing the right pricing structure can make the difference between a blissful client experience and your worst nightmare.
Thank you!

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