Hourly rates vs. Daily rates vs. other rate structures

Many people ask us why do we set hourly rates as default rate unit. The answer to this question is very simple.

Hourly rates give a feeling of fairness when billing for your services. It is of course very tempting to work with daily, weekly or monthly fee, yet this works for very few clients and for established long-term relationships. What happens in most cases though is that when you handle your client a bill for 4 weeks of consultancy together with a short list of work being done this normally results in raised eyebrows.

The perception on the client side of the value add from your work is directly proportional to the detail with which you have kept track of your work. That to a great extent includes the accuracy with which you kept track of your working time. In that respect hourly billing keeps you the closest possible to being transparent about your delivery to the client.

Just our 2 cents!

The Cronforce.com Team

How to avoid disputed bills and angry customers?

Probably many will agree that one of the most angering experiences is when a client disputes your consulting bill. The reason behind is usually trivial – miscommunication on how much a service will eventually cost your client. Some common disputes include:

  • The project took longer than anticipated and the number of billed hours increased
  • The hourly rates of the consultants were not communicated or have changed
  • The number of consultants involved went up
  • The delivered services are not considered relevant

First part of the solution is Communication, or in other words telling your client the exact number of resources, their billable rates and hours required.  Second part of the solution relates to establishing processes – always involve your client in your activities and offer transparency on what you deliver. An optimal solution is to track your time with the help of electronic timesheets. These not only enable you to efficiently keep track of your time but allow for your clients to log in and approve your entries. This way you detect inconsistencies early enough in your project, solve disputes before they escalate and surely foster a healthy relationship.

Not surprisingly Cronforce.com offers such functionality. You only need to invite your client to join our cloud platform and then configure him as approver of your timesheet in the supervisor page. We are available 24/7 to help you with such requests or any others – feel free to contact us!

The Cronforce.com Team