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Negotiating the right price for work in progress

by Log Book on 10 Feb 2012 permalink
How to make sure your client does not fall off their chair when they get your invoice? If the work you do for a client is still in progress then how can you figure out a price for it?

Instead of giving customers bad surprises why not be transparent with them? Online cloud computing allows clients to monitor the progress of a job while you have a command dashboard of who does what and where.

The key process is to allow customers to see how much time your staff is spending on their account and keep the ability to tweak hourly rates at invoice time to match what is a fair and equitable price.

Some vendors pick an hourly rate out of the air which is supposed to absorb travel costs, training on the job, suppliers' delays and so on.

Customers are left on their own wondering how soon they could afford a holiday home if they could charge such rates themselves...

Remote access has opened the way to doing multi-tasking. It is now a luxury having your employees tied-up onsite at a customer's premises twiddling their thumbs because some key information (network passwords ?) is not forthcoming or a supplier is late in delivering a piece of equipment.

Not being in control of your project means you have relinquished the ability to turn out a decent profit or worse still, end up with a loss.

The ability to juggle as many projects in-house as possible gives you the chance to match the right employee for each task, foster teamwork, enforce backup procedures and do on the job training. You send someone onsite only to deliver and commission a system or to take the brief for a new job.

The clincher is that you can now call the customer on the phone and discuss the timesheets online. You can tweak various items and get the client's endorsement. When the invoice hits their inbox, they already know what's in it and have no reason to drag their feet for payment.

Employees give you 40 hours of their lives each week. It is your prerogative to use that precious and expensive commodity to the best interest of your business. Where that time has gone in practice is impossible to know unless it is being recorded at the source. That's where an online system comes into its own because people can update it whenever and wherever they can access the net.
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Clive Rich says:
Making sure you dont give customers any nasty surprises in their invoices is a good way of retaining a deal with them. "Disclosing" is often a good way to build customer reassurance in a deal, so sharing on-line information about your time spent is a good idea.

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