How do you price for extra work and maintain your reputation when times are hard?
The support you are providing to your clients in accessing the various government funded loans available to them may result in extra work for you in the form of cash flow forecasts and possible management accounts too. Work you’ll most likely need to charge for.
Talk price in advance of doing extra work and you’re being respectful with clients, you can manage client expectations, be certain the client is happy to pay and also agree payment terms.
Talk price after the work is done and you’re being less respectful and likely to end up in conflict with clients.
Not talking price at all and simply sending an invoice after the work is done is disrespectful and arguably verging on unprofessional. And will almost certainly result in fee disputes and write-offs.
Talking price face-to-face on a Zoom call is the most respectful. Sending a pricing email is fraught with challenges UNLESS the email simply confirms what was agreed by call/zoom/meeting.
Adding in more respect
What’s important is to manage your client (the goodwill part) alongside getting paid at an appropriate rate (the cash part).
Given the current sensitivities about cash flow and costs, a discussion about payment terms is more relevant now than ever.
Encouraging clients to consider paying for work over a few months rather than in one lump sum is a respectful approach especially when times are tough.
Are you making the most of using monthly payment plans for work rather than large one-off payments?
Making good use of payment plans is a way of showing clients how £1,000 reduces to £250 over four months and taps into the science of top-down pricing. Can you see how you can use this payment plan process to make it easier for clients to say yes to your support on CBILS and other extra work?
For more on pricing conversations check out this 4-page report – the report talks about a well-proven insight of using top-down pricing options when pricing work for your clients.