OT: retainer vs. project-based billing

Question

i typically charge on a project basis for all my jobs –
and the fee that gets charged is almost never a calculation of
"well, it's going to take me x hours at y dollars per hour so
therefore the fee is z". (i won't bore you with the reasoning
behind this.)
i'm now in the process of putting together a proposal for an
ongoing relationship where the billing would likely be retainer
based and i'm not sure how to set it up. (even the traditional
"figure out how many hours a month and multiply by blah blah blah"
doesn't really make sense – if one were to do that, how is it
any different than project-based? and what incentive does a client
have to commit to the structure?)
in my mind, a retainer needs to be mutually beneficial
– as in, i would usually charge x for this amount of work but
– in the interest of developing a long-term relationship
– i'll charge x minus y%. furthermore, in the spirit of
fairness, i wouldn't quibble if the amount of work in a given month
went a little over (and i wouldn't expect that the client would
complain if a month was a little light – it probably all
works out even in the end).... but i wondering how to handle things
when the workload goes substantially over or under.
looking for some ideas and insight here... thanks.

Answer 1

JoeQ, if I might answer the question, for myself anyway:
normally, I charge
clients by the project, giving them an estimate. So in your
theoretical
situation, I would figure a price based upon several factors.
The amount of
time it will take me is one factor. Another factor would be
my experience
and skills; if I was doing something that I truly was 10
times faster at
than the average web developer, I'd charge accordingly.
The point is, the time it takes me to do the work is
definitely *one* factor
in the equation. It seldom is the only factor, though, and I
agree with you
that by itself, it's not a perfect criteria for the value of
the work.
Patty Ayers | Adobe Community Expert
www.WebDevBiz.com
Free Articles on the Business of Web Development
Web Design Contract, Estimate Request Form, Estimate
Worksheet
"joeq" <[email protected]> wrote in message
news:[email protected]...
> for the sake of conversation, accept the premise. or, if
you prefer,
> change the
> numbers of hours to twenty (them) and five (you).
>
>
>
quote:
Originally posted by:
Newsgroup User
> > to use your example (but with larger numbers), i
ask you to do a job
> > that
> > would take an experienced professional (who
charges, say $50.00 an hour)
> > twenty
> > hours but, because of your greater experience and
knowledge, it takes
> > you
> > two.
>
> This is a completely unrealistic example. There would be
no such job. Or
> perhaps you meant to use "inexperienced"? In that case,
it's not my model
> that breaks, it's the "inexperienced professional's".
>
> At any rate, I charge for my time, not by some arbitrary
standard. That
> way, I can treat people equally.
>
> --
> Murray --- ICQ 71997575
> Adobe Community Expert
> (If you *MUST* email me, don't LAUGH when you do so!)
> ==================
>
http://www.projectseven.com/go
- DW FAQs, Tutorials & Resources
>
http://www.dwfaq.com - DW FAQs,
Tutorials & Resources
> ==================
>
>
> "joeq" <[email protected]> wrote in
message
> news:[email protected]...
> > you're missing the point.
> >
> > to use your example (but with larger numbers), i
ask you to do a job
> > that
> > would take an experienced professional (who
charges, say $50.00 an hour)
> > twenty
> > hours but, because of your greater experience and
knowledge, it takes
> > you
> > two.
> >
> > now how do you charge?
> >
> >
> >
quote:
Originally posted by:
Newsgroup User
> > > but the reality is that really can't.
> >
> > Sure it can. If you ask me to do a job that takes
10 minutes, I bill
> > you
> > for 30 minutes. If you ask me to do a job that
takes me 2 hours, I bill
> > you
> > for 2 hours. Why doesn't that work?
> >
> > --
> > Murray --- ICQ 71997575
> > Adobe Community Expert
> > (If you *MUST* email me, don't LAUGH when you do
so!)
> > ==================
> >
http://www.projectseven.com/go
- DW FAQs, Tutorials & Resources
> >
http://www.dwfaq.com - DW FAQs,
Tutorials & Resources
> > ==================
> >
> >
> > "joeq" <[email protected]> wrote
in message
> > news:[email protected]...
> > > doesn't really answer the question though...
> > >
> > > you're obviously very experienced and can do
something in a fraction
> > > of
> > > the
> > > time it takes someone else. your fees should
reflect that ? but the
> > > reality is
> > > that really can't.
> > >
> > >
quote:
Originally posted by:
Newsgroup User
> > > My clients benefit from my "vast experience".
I also have a minimum
> > > time
> > > increment of 30 minutes....
> > >
> > > --
> > > Murray --- ICQ 71997575
> > > Adobe Community Expert
> > > (If you *MUST* email me, don't LAUGH when you
do so!)
> > > ==================
> > >
http://www.projectseven.com/go
- DW FAQs, Tutorials & Resources
> > >
http://www.dwfaq.com - DW FAQs,
Tutorials & Resources
> > > ==================
> > >
> > >
> > > "joeq" <[email protected]>
wrote in message
> > > news:[email protected]...
> > > >a follow-up question that i think helps
make my point about the
> > > >difficulties of
> > > > hourly billing:
> > > >
> > > > in hourly billing, how do account for the
fact that ? because of
> > > > your
> > > > vast
> > > > experience ? you can do something in a
tenth of the time that it
> > > > takes
> > > > an
> > > > experience beginner... who charges, for
example, $50.00 an hour?
> > > > would
> > > > your
> > > > clients not fall out of their respective
chairs if you told them you
> > > > want
> > > > $500.00 an hour? or $1,000.00???
> > > >
> > >
> > >
> > >
> > >
> > >
> >
> >
> >
> >
> >
>
>
>
>
>