One of the top two questions I am constantly asked is, "why don't you charge an hourly rate?" Well after fielding it so many times, I knew I had to blog the reasons. I don't like talking about my job in these pages too much, which is why you don't see a lot about the fact that I'm booked almost every week from now till doomsday! But there are occasions when it is important to address crucial ideas that I am at the center of. So here are my top 10 resons for not charging an hourly rate. If you have comments or question, feel free to email them to me.
- There is a cap on your investment. You know exactly what is to be spent and there are no surprises.
- There is never a "meter running." You do not have to worry each time my help is requested that I might be here for an hour, a day, or a week.
- It is unfair to you to place you in the position of making an investment decision every time you may need my help. Otherwise, you're trying to determine the impossible: Is this an issue that justifies a $2,000 visit or a $500 phone call. No client should ever be in that position.
- Your people should feel free to use my assistance and to ask for my help without feeling they have to go to someone for budgetary approval. This only makes them more resistant to sharing their views, and at best delays the flow of important information.
- If I find additional work that was unanticipated but must be performed, I can do it without having to come to you for additional funds. In those instances, legitimate, additional work would otherwise be viewed as self-aggrandizing and an attempt to generate addition hours or days.
- If you find additional, related work that must be done, you can freely request it without worry about increased costs.
- The overall, set fee, in relation to the project outcomes to be delivered, is inevitably less of a proportional investment than hourly billing.
- If conditions change in your organization, you won't be in the difficult situation of having to request that the project be completed in less time. The quality approach is assured, since the fee is set and paid.
- If I decide that additional resources are necessary, there is no cost to you and I can employ additional help as I see fit.
- This is the most uncomplicated way to work together. There will never be a debate about what is billable time (e.g., travel, report writing) or what should be done on site or off site.
