When does the billing for a T&M job end?

[vangogh]

Just a thought about the flat rate pricing. I have similar issues in my businesses since I can't give an accurate estimate of the cost without knowing the details of a project. However over time I've realized I can give a fairly accurate range of pricing for all but the exceptional cases. What I've been doing when someone asks for an estimate without providing much detail is give them the general price range, with the explanation that the details will be necessary for a true accurate price and a commitment from me to work at that price.

You might be able to do something similar. While you won't be able to offer an exact price without checking for yourself what really needs to be done, I wouldn't be surprised if you could come fairly close based on the home owner's description of the problem. It won't work in all cases so you let them know the price isn't final until you can come to the house and see for yourself what needs to be done, but you'll probably be able to come close enough for many jobs.

You could also make the initial estimate a little on the high side to weed out some and you can come in lower than your estimate if you want, which will make the customer happy. And if you don't come down off the high estimate the little bit extra helps makeup for those few exception jobs.

[Harold Mansfield]

I think you should configure a set time for each of those functions, like say 10 or 15 minutes...or however long it takes you, and figure that into your hourly rate so it seems that you have stopped billing, but already have it figured in.
That way you can look like a stud by announcing "I have finished and your billing stops now !" (Visualize your hands on your hips, chest out, and cape flapping in the wind like a conquering hero).

It would only adjust your hourly by a small percentage and would hardly be noticeable.

JMO

[Spider]

Here's another thought on the "approximate estimate."

Many times I find myself enquiring about the cost of something and I really have no idea whether it would be $500 or $5,000. Sometimes a prospective customer just wants a ballpark figure to help them decide whether now is a good time to proceed or whether to delay further enquiries.

There is work for the customer to do in preparing to answer the specific questions a supplier may need to give a firm quote. No-one wants to spend time making specific decisions for a vague project that may need to be postponed if the price is higher than imagined. Also, the price may affect the answers.

A method for approximate pricing may be useful for getting your brochure in a prospect's hands and your contact information on their desk.

[vangogh]

Frederick that's where my approximate estimating came from. It was a combination of wanting to help legit inquiries and give them at least a rough idea of how much something would cost and also to weed out the less than legit inquiries, the tire kickers so to speak.

I get contacted often with a single "how much for a website?" or "how much to seo my website," neither of which can really be answered without more details. However I can briefly describe what your project most likely entails along with a price range and some questions to get more details. By giving my own description of the project you can at least compare it to your description of the project and getting a feeling for where the price will be. I also try to add in some thoughts about what might cause the approximate price to increase significantly.

[orion_joel]

A good portion may also come down to that fact that in general people are looking to save anywhere they can. Some people just seem to be more onto what ever they can then others.

One guy may quibble over the price of a toilet the other times you to the minute. Be it product or time, different people argue over different things.

[Ad-Vice_Man]

another idea is to bill only in whole hours.

so a job thats 1 hour and 30 minutes would be priced the same as 1 hour 50 minutes and so on. This would give customers an easier time of tracking the cost while you're there, and at the same time minimize disagreement of what counts, and what doesnt. Hopefully it doesn't take you more than 10 or so muinutes to write up a bill and pack up.

In instances where your there for only 5 or 10 minutes past the hours, you can play the hero and round down confident in the knowlegde that you'll more than make up for it on the 1.5 and the 1.75 hour jobs.