I’ve been running my Pay Fair scheme since I started my business back in 2013. To date 98+% of my clients have paid my suggested fee in full. A growing number of clients have paid me more than I asked. I’ve then amended my invoice and donated the extra payment to the charity mentioned below.
“Thank you so much for your ongoing and valuable support for
@simonotstreets. We couldn’t do it without you!”
“I found your input invaluable and I’m more than happy to pay what you suggest. “
When I work with you, you simply pay the amount you judge to be fair.
Most professional services work on a simple model of an hourly rate multiplied by time. The hourly rate is defined by the complexity of the task or the value of the advice/expertise. Increasingly, some organisations are turning to fixed fees to offer certainty and attract volume work.
I believe that my advice has a value and that when I offer advice or my time it is not unreasonable to expect fair payment for my input. But over many years in business I have seen too many individuals and companies fall out over fees or pricing. How many times have you been frustrated or heard about people receiving a bill for many more hours than expected? Or received a report that spends 90% of the time setting out information you already know?
So my model is simple and empowers you, my project partner, and we play fair.
In summary, we work together to scope our project and look to how we can minimise my time investment and we work efficiently together. We agree an hourly rate but ultimately you pay the amount you judge my work to have been worth.
“Have found both sessions extremely helpful. Many thanks. Fees absolutely fine.”
How It Works:
1. The more preparation and work you do the less of my time you will need – so I’ll advise you how and what you need to do to get the most out of me. I’ll give you an estimate of the time I think we will need. I won’t do unnecessary work that you could more efficiently do yourself.
2. We agree an hourly rate for my time – my hourly rate is usually £200.
3. As our work/project progresses I will advise you of my cumulative time spent and estimates of future work required. By simply multiplying the time spent working for you by our agreed hourly rate we arrive at a total value for my work. There are no hidden surprises.
4. You then consider my work and your experience and tell me how much you want to pay. I obviously hope it will be as close to the calculation as possible but you are my project partner your judgment of the value is final.
5. I will then raise an invoice for the amount which you are willing to pay and I request that it is paid to Wow Thank You Limited within 7 days.
6. We move forward to future opportunities.
7. I will also have gained immediate, real and invaluable customer feedback which will enable me to further improve and hone my service.
8. If you recommend me to a new client I will donate 10% of their payments to the charity Simon on the Streets:
“Your generosity and support for Simon on the Streets are invaluable Tim, thanks as always.”
“Invoice is fine, thanks for your invaluable help, will get this paid promptly.”
Thanks to David Maister and Hope & Social for the inspiration of Pay Fair.
© Wow Thank You Limited trading as THE TIM COLLINS CONSULTANCY 2013
(But please feel free to share or use this concept if it may help you)