Fundamentalism can have its disadvantages in today’s world. Many freelancers will stick to their ideologies and never swim in different waters, perhaps fearing that they may try new things – God forbid! Some freelancers who charge fixed task-based rates will never charge to hourly and vice versa. I will, therefore, make the case for fixed rate, on the assumption that most freelancers charge hourly rates.
The advantages of quoting a fixed task-based rate as opposed to an hourly rate are:
1. Feels Cheaper
This plays excellently with client psychology as fixed prices will often sound cheaper than hourly rates. A client may be put off with the idea of a high hourly rate. For example a freelance designer may be asked to design a logo which takes two hours to complete and want $200 for it. Asking for $100 an hour may seem heavy to the client, however a fixed rate of $200 may sound more welcoming.
2. The Solid Client
Telling a client “My hourly rate is $x and this project may take me so long, however, if it takes longer I will be charging you for the extra hours” may seem too fluid for a client to be comfortable. A fixed rate however can be worked out as an average of how long it may take. If there is a project you think may take 30 hours, however it is possible to run on for up to 40 hours, you can charge for 35 hours.
3. Charge More
There can be many reasons for you not being fully motivated in a project and a higher price may help motivate you. It is possible in many situations to charge more than an hourly rate will allow. Some projects can have room for you to charge more, however, by charging an hourly rate their is now a ceiling on how far up that price can go.
Giving a quote in hours will restrict you. If you quote with five hours in mind, you must complete within five hours. This has now taken away the freedom why we became freelancers in the first place. You tried to be your own boss by ditching the 9 to 5 and move away from the rat race, unfortunately, to enter a new rate race with a new boss.
There are many situations in which an hourly rate will be significantly better than a fixed task-based price. These are the advantages, in my view, of the task-based pricing.
Do you agree or disagree? Let me know below.
Please subscribe to our RSS and share using the links below.