Home – New Forums Money matters Questions on discounting day rates & estimating & tracking time

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  • #998527
    SallyHR
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    Hi All

    Im new to the group and consulting. The resources have been amazing & I have read a lot. I have a couple of questions about rates, estimating time on the propsal and tracking hours:

    1) should I give a discount for a day rate (8 hours) or just stick with a set hourly rate – the client has asked about a day tate.

    2) how do you track hours for each client. Is it as sinple as an excel spreadsheet and do you provide the spreadsheet with the client before seding the invoice?

    3) how should I calculate estimated hours on a proposal for screening resumes & phone interviewing when we have no idea how many people will apply for each job. I thought I could possibly put estimated times down for screening resumes and Phone interviews based on 50 resumes received – e.g. 2 min screen per resume and 10 – 15 minutes phone interviews for each but I don’t know if I need to go into this detail on the propsal.

    I’d appreciate any advice. Thanks in advance.

    #1214601
    elissa.doxey
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    Hi Sally,

    Estimating times for proposals is one of my more arduous tasks – there are a few Flying Solo articles, like this one, and others that are great.

    1) I can’t help you there – I charge on a project/service basis.

    2) I use Insightly, but there are plenty of other free/cheap services (and lots of expensive ones). I also have the ability to do it in my accounting software, but tend to still use Insightly, because i use it alongside my project/task management timelines, etc.

    3) I charge for a ‘service’, rather than the individual hours that it might take me to do a task. This suits me – it means that I don’t have to stress about counting hours and I tend to work out my own scheduling time in half-day blocks, anyway. (I also work part-time).

    So, in regards to a screening service, my approach would be to focus on the benefit of the service (screening cvs, phoning those of interest, arranging times for interviews, etc), rather than trying to gauge exact numbers of applicants & calls, and provide a full cost based on what it usually takes to complete a screening.

    Cheers,
    Elissa

    #1214602
    bb1
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    SallyHR, post: 258417, member: 110390 wrote:
    1) should I give a discount for a day rate (8 hours) or just stick with a set hourly rate – the client has asked about a day tate.

    Both in my current life and my previous one in IT, I never offer/ed a day rate, gets to messy, plus further down you mention keeping track of hours, so it sounds like you wont be just doing straight days anyhow. Value your work and charge at that rate.

    SallyHR, post: 258417, member: 110390 wrote:
    2) how do you track hours for each client. Is it as sinple as an excel spreadsheet and do you provide the spreadsheet with the client before seding the invoice?
    .

    I wouldn’t share my tracking system with the client, just send the invoice, which they can query if they like, but in my many moons of charging I have never been queried on my invoices, maybe I should charge more.

    SallyHR, post: 258417, member: 110390 wrote:
    3) how should I calculate estimated hours on a proposal for screening resumes & phone interviewing when we have no idea how many people will apply for each job. I thought I could possibly put estimated times down for screening resumes and Phone interviews based on 50 resumes received – e.g. 2 min screen per resume and 10 – 15 minutes phone interviews for each but I don’t know if I need to go into this detail on the propsal.
    .

    I wouldn’t break down the time per task in my proposal.

    And I think if they cant tell you how many resumes you will receive, I would take one of 2 approaches. 1. X dollars per resume, or 2. Y dollars for up to 50 resumes, and $X per each additional resume.

    Option 2 at least guarantee’s you a minimum fee if they fall short on the number of resumes, but doesn’t leave you having to service 200 for the same price.

    #1214603
    Paul – FS Concierge
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    Hi and welcome to Flying Solo [USER=110390]@SallyHR[/USER] – it is fantastic that you have joined and are already posting!

    There are plenty of mobile and web apps that can record your minutes for billing purposes -There is a link in the article [USER=88225]@elissa.doxey[/USER] posted.

    I read this very small book online about how to charge customers and loved it – if you have a spare minute, check it out.

    Breaking the Time Barrier

    And our previous Editor [USER=63738]@Kelly Exeter FS Editor[/USER] wrote a teriffic article about how her business benefited when she made some changes to pricing.

    Busy but broke: why don’t I have any money?

    Cheers

    #1214604
    SallyHR
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    Thank you all for your advice and reference to other articles and material. I really appreciate it. I’ve used the information to put my proposal together and sent it off today. Fingers crossed :-)

    #1214605
    Paul – FS Concierge
    Keymaster
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    Come back and let us know how you do [USER=110390]@SallyHR[/USER] – good result or bad does not make a difference but anything you learned along the way and your thoughts in general are super valuable.

    I have my fingers crossed for you :-)

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