On the pricing of services work

Matt Henderson of Makalu shares his thoughts on pricing technical services work in this post from his firm’s blog:

When I started Makalu, over a decade ago, I remember longing for a user’s manual to help with questions like, “How much should I charge?” and “How should I price my work?” This article describes how we approached these questions, and includes discussion of the recent controversy over the pricing of the 37signals’s (@37signals) blog redesign project.

On the pricing of services work – Matt Henderson

He hits on:

  • Determination of a minimum hourly rate
  • Making adjustments according to supply and demand
  • But what about the others?
  • Hourly or project? Effort or value?
  • But what about value pricing?