The pricing approach you choose has huge implications for the profitability of your project. If you go with a time and materials model, scope changes won't hurt you but the project might be less profitable. If you go with a flat rate, the project could be more profitable but you could suffer a loss due to scope changes. You need to be mindful of how you describe your rates, discounts, and rebates, because that description comes into play in negotiations.
- The pricing approach you choose has huge implications…for the profitability of your project.…If you price the work with the time and materials model,…scope changes won't hurt you,…but the project might be less profitable…than if you use a different pricing approach.…The time and materials approach means the client…pays you for every hour of work you do…as well as paying for any materials you use…on the engagement.…If you price your projects with a flat rate,…the project could be much more profitable,…but you could suffer a loss due to scope changes.…
Basically, you're selling the project for a fixed price,…no matter how much or how little effort it takes…on your part to satisfy the client expectations…on your deliverables.…You'll need to be mindful of how you describe your rates,…discounts and rebates, because that description…comes into play during negotiations.…During one client interaction that I had…when I was selling some Thought Leaders work,…I had a discount schedule for the client.…What we said was the first 25 people in the class…
- Major and minor contracts
- Registering as a supplier
- Setting pricing, payment, and other contract terms
- Insurance requirements
- Defining your project
- Negotiating the contract
Skill Level Intermediate
1. Start the Contracting Process
Register as a supplier2m 31s
2. Understand Contract Elements
3. Define Your Project
4. Negotiate the Contract
Next steps1m 18s
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