Still billing in fractions of an hour? How quaint.

hourglassAre you still billing your clients in fractions of an hour? Why?

Is there a rule somewhere that says the value of your services are directly related only to the amount of time you spent on them? If so, then how do you compensate yourself for the time spent accumulating that knowledge? How about the time you never billed the last client for sharpening your skills on that very same question you just answered (and billed) in 10 minutes for the current client?

  • Does your plumber bill you only 5 minutes for coming out to your house and fixing the leak in your faucet?
  • When you see your doctor and they can’t cure that rash on your arm – do they say “forget about it – we couldn’t fix it so there’s no charge”
  • When you don’t have a claim for the current year on your auto insurance policy – do you call at the end of the year and dispute the value of the policy because you did not have enough accidents to make the policy worthwhile?

Of course these are all crazy ideas.

Why do most consultants still bill in a crazy way — trying to slice their time to the tiniest portion possible so as not to make the client angry?

I submit there is no rule that say’s you have to bill in any increment. If you can get away with a day rate – by all means please do. We make our clients aware that there is a minimum charge equal to our hourly rate. As a matter of fact none of our bills show the number of hours spent on a client’s project.

Guess how many people have complained? Exactly none.

PS – Your weekend, after hours (outside of 9 to 5), and holiday rate should all be twice your standard billing rate with a minimum fee and only available when the appointment is pre-arranged.