Re: Misc Contracting Tip About Pricing

Subject: Re: Misc Contracting Tip About Pricing
From: "Nagai, Paul" <pnagai -at- VISA -dot- COM>
Date: Thu, 30 Nov 1995 08:28:00 PST

> >For example, if a customer wants to pay you $200 for a project that will
> >take you 10 hours and you want to do the project even though your hourly
> >rate is $40/hr, in the final accounting, charge them for only 5 hours and
> >show them that they received 5 hours free of charge instead of lowering
your
> >rate to $20/hr.

> If you and the customer have agreed on a fixed price, where does hourly
rate
> come into the picture? ...RM

I have had contracts that specify I may not have other contracts for similar
services for which I charge a lower rate. Those contracts specified that
must lower my rates to match the lower rates I was charging elsewhere.

The contract didn't say anything about giving away time/services to another
clients.

In that situation, listing my regular hourly, while donating a few hours of
service preserved my rate for the purposes of the first contract.

------
Paul Nagai
Visa International
pnagai -at- visa -dot- com
415-432-1101
415-432-3678 fax


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