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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?

By Josh Richards

Josh is a consulting network/ systems/ cloud engineer, freelance high stakes IT project manager, and former technology executive. He has consulted on information technology matters for over twenty-five years. In 2006, consulting became his primary source of income (just before the global financial crisis!). He’s a big fan of craft beer, freshly roasted coffee, artistic burlesque, good food, and applying science and reason to problems and opportunities small and large (and just for fun). When he has time and energy he also likes to get out on his bike or attend a soccer match.