Let’s assume you’re a freelance Salesforce consultant, and are currently billing by the hour.
You’ve heard me speak about fixed pricing before, and the topic interests you. You just don’t know how to switch.
Here are three considerations to help you with this transition:
1. It’s hard to convert current clients
Existing clients are used to you charging them by the hour. People generally don’t like change, so they will most likely resist.
What you could do is for your next project, offer two options:
a. Your regular estimate (say, x hours at $y/hour)
b. A fixed price, which is 85% higher than your estimate
The 85% buffer is high, but you’re offering a guaranteed ceiling. You’re offering certainty. And that has value.
2. It’s easier to find new clients
Rather than try to convert your existing clients into fixed pricing, it’s significantly easier to find new ones that only know you as fixed pricing.
This transition takes time, and you may really enjoy working with your existing clients. But if you don’t invoke the change, the change won’t happen on its own.
3. Decide your services
There are several methods for fixed priced services. I’ve written an email series about five methods.
Once you’ve read those, sit down and see which ones makes sense for you. Perhaps start with one and expand your offerings as you gain experience with this new way of billing.
The takeaway
FYI, for me, the switch from hourly to fixed took about a year to be fully implemented. So don’t expect to make the decision and then snap, immediately switch.