Thanks for your thoughts, Kevin. I completely understand the challenges both with pricing a project correctly and with handling changes to scope.

Inside my own business, I’ve solved the scope issue by adding language in my agreement about additional fees “in the event that an expansion of scope is requested” during the project. When a client requests something – big or small – that is outside scope I identify the change as “an expansion of scope” and then either charge for it or waive the charges if the change is relatively minor.

I find that this simple step keeps clients aware of scope. In the past I would allow small changes and then suddenly talk about additional fees when the request was large – which created those awkward moments you mention. This way scope is something we discuss naturally during the project and things feel more natural.

Hope this helps…
Michelle

I’ll be honest, pricing a job is one of the areas that I fall down with sometimes.

I prefer to follow the project pricing model as this is what most customers seem to prefer.
I find that they like this because they know exactly what they will be paying so there are no unexpected surprises down the line, and they can budget properly.

It usually works out well for me but like you have mentioned in your article, I’ve made the mistake of not estimating the time and work involved correctly and something takes a lot longer than expected.

Another problem with this model is when a client wants to add something that you did not originally quote for. I’ve had this happen a few times and it can lead to awkward conversations about a price increase for additional work.

Regards,

Kevin

Hi Tamsin,

Thank you so much for your thoughts. Great point about expenses – let me clarify. 🙂 I meant business expenses (so your software costs, office supplies, contractors, rent, etc.) not your personal expenses. You’re right… it would be a bit random to expect clients to pay us for our desired lifestyle vs. our actual business costs.

As for charging based on how difficult a task is or how long we think it will take, I believe we should also factor in our experience. When you just started out each task took longer than it does now and felt more difficult. You’ve gained skill over time – making tasks seem easier – but actually your skills make your time much more valuable.

In terms of “what we want to earn”, I was referring to your desired salary or the amount you’d like to pay yourself – realistically – in a given month. For example, I might WANT to earn top dollar, but I actually need to pay myself a certain amount as a normal wage per month. This is what I meant by what we want to earn.

Thank you for pointing out areas which needed clarification, Tamsin. I appreciate your comments and I’d love to chat more about this topic. Feel free to add additional comments if you have questions or want to raise other points.

Thanks!
Michelle

I also often hear other designers and developers say ‘it will take me 2 hours’ so that’s what they charge for. I always weigh up how easy or difficult the task may be, what level of skill and trust is required. As developers we are handling our client’s personal details for their entire lives, social media, google and their online presence, we are privy to their merchant accounts for online commerce and so much more…I feel that this in itself is something that should be factored in when pricing.

Having said all this, I am still not always confident to charge for all of the above.

Also, how do you factor in ‘what you want to earn?’ because we all want to earn top dollar. I feel there is another question or equation that I would love to uncover here to assist with charging fairly, accurately, and scalability if that is such a word!

Lovely article it inspired me….thanks Tamsin

Thank you for your comments, Frank. You’re spot on – pricing schemes must fit your offer. Sounds like you’ve done a good job of balancing project rates with hourly rates. Cheers!

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