Webwork - 12:49 pm on Mar 2, 2005 (gmt 0)

Consider flat rate billing for specific recurring services. There's likely a lot of services/actions this would apply to. After several years of experience you should have a good handle on this. Even larger, more complex tasks can often be broken down into steps that demonstrate redundant behavior and time consumption.

By establishing flat rate billing you are also informing your employees that you expect certain projects will be done within that time window. If you know you bill X hours for Y task then you know, if your employee is getting the job done (correctly), that you will cover your overhead and make a profit.

Remember the old saw: Work expands to fill the time alloted to it. Think how that might apply without breaking down tasks. If you think through the modular billing model you can see a lot of opportunity for information mining, controls, achieving efficiencies, allow for task transfer between employees, structuring production, setting reasonable client expectations, hitting targets, giving the client the satisfaction of 'seeing the pieces', facilitating new employee training, etc. I'm sure this is going on to some degree. It's a choice. "Laid back" has its limitations, as well as its benefits/rewards. Usually it's a matter of balance and it looks like you sense things may be out of balance. No more Mr. Nice Guy, eh? It's possible.

Some activities are more purely 'by the hour' and you know what they are. Still, in these situations you sit down with the client beforehand to explain 'the usual scenario' and 'the assumptions' - which you are best served by putting into writing AND, when it looks like the assumptions will not apply then you are best served by promptly sitting down with the client.

Mix the models and you will likely increase both your profitability and efficiency, in which case there's benefits for both you and the client.