Tag: Fixed Pricing

Fellow reader Christopher asked, regarding fixed-priced projects, how does the payment structure work?

The short answer is, get paid 100% up-front.

The “usual” approach for invoicing Salesforce projects is:

1. Build part or all of the project
2. Invoice the client
3. Cross your fingers that you get paid within 30 days

Charging late fees, sending reminder emails, and politely but firmly chasing the client are all part of this approach.… Read the rest

The second most important thing to know about value-based projects is to scope last.

Yes, last.

Here are the steps to be complete before you determine the scope:

1. As best as you can, determine the value of the project in the eyes of the client (see the post about finding the project’s value)
2. From there, you come up with three options at the following price points: Option 1 is 10% of the total value of the project.

The most important thing to know about value-based projects is the value of a project is determined by a combination of math and art. The math can sometimes be straightforward, but sometimes it may require additional creative help.

For example, let’s say the project is to merge Salesforce orgs.… Read the rest

Method #5: Value-based projects

The following process must be quite familiar to you:

1. A client asks for your help
2. You give an estimate for a discovery phase, for an amount that’s based on your past experience
3. Once discovery is completed, you know most details of what you need to do and how you plan to do it
4. You submit a proposal with an estimate, based on time & materials (T&M) to implement everything above
5. Midway through the project, you determine your estimates were too low, so you submit a change order, then another, then another
6. The client gets frustrated with the constant extra charges, but because of the sunk cost, they begrudgingly proceed
7. At one point, you stop charging the client and “eat” hours out of guilt, and both parties are frustrated

Now instead of all that, what if we flipped it around and use value-based pricing (VBP).… Read the rest

Method #4: Retainer

Once you become well known in a specific vertical or horizontal domain in Salesforce, you can offer a retainer service.

When I say “vertical”, I’m talking about an industry, such as nonprofit, financial, or healthcare. For “horizontal”, it could mean a cloud specialization, like CPQ or Field Service.… Read the rest

Method #3: Managed service

A managed service is a monthly subscription-type of service. In return, you offer and fulfill a list of clearly set functions or objectives.

The main difference between this method and a productized service is that you customize the price based on the client’s requirements.… Read the rest

Method #2: Productized service

A productized service is a hybrid of a product and a service. You sell it like a product, with a fixed price. And you fulfill it as a service, with a very clear scope.

The boundaries of the scope are important here, as you don’t want scope creep.… Read the rest

There are five main ways Salesforce consultants can move away from hourly billing. Depending on whether you are a full-time employee or a freelancer, not every way will be easily available to you. The goal here is to show you the ways and then for you to determine which one or ones are best  suited for your situation.… Read the rest

Just before we get into details about having fixed-prices for Salesforce work, consider the following story. This is probably not a factual story, but an allegory with an important moral.

Henry Ford of the Ford motor company had a huge machine that automated an important part of the car manufacturing process.… Read the rest

There’s a growing trend in the Salesforce ecosystem to shift away from hourly billing. It’s a trend that is more commonly found on other platforms and industries, so it’s about damn time it came to Salesforce.

When you’re starting your Salesforce career, it’s normal to only hear about hourly rates.… Read the rest