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100 Thoughts on Pricing: #78

Writer's picture: Joel WhiteJoel White

Optimizing for T&Ms: From time to time you might agree to charge hourly for something you normally charge a fixed price. Consider charging more on the hourly basis than the equivalent fixed price basis, since you are taking on the resourcing and revenue risk of uncertain utilization and cash flow (pro tip: the nonrefundable retainer helps offset this risk).

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