Contract pricing requires more knowledge and expertise from the person implementing the work.
You must be able to estimate as accurately as possible how long the work will take. In addition to this, you have to be prepared for surprises; the fact is that sometimes projects take more time than expected. On the other hand, some of the projects are going faster than expected.
This variation evens out the more gigs you do. However, always accurately calculate the time it takes to complete one gig. If projects constantly take longer than you planned, it’s good to know how to correct your own pricing quickly.
Contract pricing is more profitable
customer to buy when he knows that he will get the service for one price. In addition to this, contract pricing is usually more profitable. This is because it is psychologically easier for the customer to buy, for example, a photography service for five Australia Phone Number List hundred euros, than five hours of work for one hundred euros.
For example, it is easier to buy the services of a photographer as contract pricing. Although in wedding photography, the customer is interested in getting memorable pictures from the most important day of his life. The time spent on photography, image post-processing and possible printing is a secondary issue. Of course, the Photographer must first calculate the time required for the project and make a package offer from this.
Many services that are generally invoiced on an hourly basis, such as renovations and cleaning services, can also be turned into contract prices. Of course, this requires careful groundwork and evaluation, which should be invoiced as a separate entity.
This model works best when the work to be done is very standardized, i.e. for which the same return can be expected for each hour. For example, in the IT sector or the trade sector, this is a fairly common operating model.
Contract pricing is easier for the customer
Contract pricing is usually easier for the customer to buy. The customer knows one price at which he gets the finished service he wants.
If you give a discount, remember that you Mailing Lead will have to sell more to make the same amount of money. So if you give a discount, first think about what its goal is.
For example, you can sell to regular customers at a lower price than to others. The idea here is that you save on new customer acquisition costs. Please note, however, that in the end games this discount must be taken back by charging casual customers accordingly more.
If you don’t want to change your hourly rate, you can of course give your customers something extra. Especially if your competitors are offering the same hourly rate, you can give yourself an edge by giving clients more than your competitors. Quite common are various loyal customers, for example one where every tenth time is free.