Flate Rate vs. Hourly

Which is the Right Solution for You?


Although much of our consulting and training projects are done hourly, there are times when a flat-rate model can be desirable. Certain projects or sub-components of a project can be set to a flat-rate model after sales assement time or billable scope time.

The difference in pricing is based on the fact that a flat rate has a built in insurance that will guarantee the final price. Therefore, the initial flat rate will be higher than a similar hourly rate quote. For example; once a certain amount of hours is reached for a potential job, that amount is increased by, for example, 25% to arrive at a reasonable flat rate figure.

Contrasted, hourly billing is desirable when SCOPE of work is not in the budget and you simply need professional services on a pay-as-you-go model. With our firm, the protections that govern hourly service are the following:

  1. With hourly work, as long as the consultant provides a reasonable estimate based on professional experience, then you pay as you go for what you need only. In this model, we must report back to you regularly during the project lifecycle when there are additional needs or issues, providing you all viable options.
  2. A credentialed and competent consultant must be willing to take responsibility for their work. They will track their hourly billing. If they are at fault for something that goes wrong, you will not be billed for the time it takes to correct the problem with one exception; if there is technical difficulty with Windows or the cleints computer hardware.  For example, the consultant should not be required to fix that PC for free.
    We would like to talk to you about your Act! requirements and help you to determine which of the two billing modles would be most beneficial for you.