Showerthought on billing: hourly vs flat rate for routine maintenance work

Last month I had a client in Denver who insisted I switch from my usual flat rate for monthly server updates to an hourly billing model. After three weeks they complained the invoices were too unpredictable and asked to go back to flat rate. Has anyone else dealt with clients who think they want one billing method but end up hating it after trying it out?

3 comments

3 Comments

taylor.brooke20d ago

@gracej99 hit it right, clients think hourly gives them control but it just makes them paranoid about every email and phone call. Flat rate builds trust by removing that constant money anxiety from the equation.

gracej9920d ago

Read a piece in a small business IT newsletter that said flat rate works better for routine stuff because clients like knowing exactly what they're paying each month. Hourly makes them anxious even if the total ends up being lower. Your Denver client proves that point pretty well.

kimr9120d ago

Flat rate takes the guessing game out of it for sure. Clients can just pay and forget rather than watching the clock tick. Hourly makes them second-guess every little question they ask.