How to Offer a Compelling Explanation Why Variable Rate isn't So Bad

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Recently I've changed my pricing structure over from fixed to variable. I've discussed this quite a bit in the Being a Starving Artist Sucks book, so I won't get into it here. I just wanted to share with you how I have approached clients with the news that I'll be working on a variable rate now.

If the two approaches I have below my approach please share it with the design community (you know there's nothing worse than to have a happy client that didn't provide a testimonial and didn't tell anyone about how you were able to help them).

"In terms of pricing, I know I’ve invoiced a flat rate in the past but I’ll be moving to an hourly rate format now. What I’d found was that the flat rate causes freelancers to push clients to get done as quickly as possible (which typically isn’t a good fit for anyone), or they over inflate their cost estimates to ensure they get paid what they feel they should. I am not interested in doing either of these things; my focus is just to be compensated for the time and energy I am investing, so variable costs make the most sense.

Below I’ve provided some good-faith estimates on how long I estimate the projects to take, in the end they may take more or less time depending on up front info, revisions and unforeseeables. I’ll do my best to adhere to these estimates, if I find we’re notably going to go over the time I’ve estimated, I’ll let you know...and let you know how we can minimize the overage."

Another approach is to say, “I charge an hourly rate on all projects billed at $____ per hour. In this project, you get ___ concepts to choose from and ___ number of revisions in the price I’m quoting here. If we go beyond that for whatever reason you’ll run into additional charges, since it will take more time. If you work efficiently and we can accomplish the project in less time, you’ll pay only for the actual time spent.”

Tell them what they get for $X then tell them you’re going to charge more if the project goes over those parameters or less if they are more efficient, that works.

 

PS - Most of the Verbal Kung Fu for Freelancers book is set up like this, so if it's something you could benefit check it out a little more.