Switched from flat monthly billing to hourly for my consulting and finally stopped losing money

For about 8 months I did flat rate projects for small businesses in Phoenix. $1500 for a full network audit and recommendations. I thought it was simple and clients liked the fixed price. Then I tracked my actual hours on 3 projects and realized I was averaging 22 hours each, which worked out to like $68 an hour before taxes. For the more complex jobs with old wiring and weird server setups I was sometimes making less than minimum wage. Last month I switched to a $150/hour rate with a 5 hour minimum and gave a rough estimate upfront. First client with the new system took 14 hours and paid $2100, which is way more fair for both of us. Anyone else run the numbers on your consulting rates lately and get a shock?

1 comments

1 Comment

the_jake2h ago

So you did 3 projects and decided to overhaul your whole billing system, seems a little dramatic.