In Episode 2 of the 2015 HOW Design Live Speaker Podcast Series, I interviewed Rob Harr, VP of Sparkbox, on his topic, “How to Make Hourly Pricing Work.”
There are plenty of gems to learn from in this interview, in which Harr explains why he thinks creatives have such a hard time with pricing and what we have to unlearn if we are to run a successful and thriving creative business.
But you won’t want to miss him describing how his interactive firm uses hourly pricing and weekly invoicing to keep the scope of projects from creeping and the cash flowing.
In his HDL session on Monday, May 4 in Chicago, Harr will address the 3 most common pricing strategies: fixed, value and hourly, because it’s not that one is “the best.” He emphasizes that what’s important is finding the one that works for you and your business model.
Sparkbox chose hourly pricing because fixed pricing (and a tendency to over-deliver) was causing the firm to hemorrhage cash. “When we shifted to hourly, we shared the risk of what we were building with our clients so that if we encountered problems or they wanted to change scope, we could do that easily.”
Hourly pricing combined with weekly invoicing means everything is up to date, there are no surprises and that they are literally, constantly talking about money and the effort required to do what needs to be done.
That’s a great habit to get into…listen and then try it to see if it’s right for you. Check out Sparkbox at www.seesparkbox.com and if you haven’t registered yet for HOW Design Live, find details here www.howdesignlive.com and use “MENTOR” promo code for $50 off