The flat fee vs. hourly rate debate
This morning when opening my email, the first email that caught my eye was Cory Watilo's latest post : How to charge clients: flat fee vs. hourly rate?
This is a real issue that we have to battle with every day. Just last week I had a customer requesting a change to a PHP / Web project (flat fee) that have been closed off 4 months ago. It was only 1 hour's work, and the amount truly insignificant - but the client decided that he will not pay me for this work but instead he "blew his gasket" that we had the audacity to bill him for this. We provided him with this software and of course updates and maintenance should be free for life :P.
This specific piece of work was to just add a simple category to a selection box, but still, all the options currently available was checked and double checked and signed off by the client.
What would you do in this case? Just grin and bear it and spend the time going in via FTP, making your back-ups, corresponding with the customer about the change, implementing and testing ...
The reality is that in South Africa we are forced to keep relatively low hourly rates, while operating costs of a business is through the roof.
Some say it is a Cape Town / Jo'burg thing. With us operating Cape Town, having customers that are battling with strained budgets versus Jo'burg customers who know what they want, and they want it NOW. Whichever the weather - the customer is always right. And then of course I also want to be proud of my work and hope others come to hear of it.
How can we keep our customers happy but still manage to keep food on the table? This is the question which eludes me.

