Paying a flat fee per month for outsourcing services is growing in popularity at a rapid rate for many services. Some of these include IT services and legal services.
There are several reasons some companies prefer to engage along these lines.
Probably, most importantly is the no surprises at the end of the month in the billing. If you sign up for something that costs $100 per month, unless you purposefully go over the contracted amount of time or tasks you are given, then your bill will be $100. That seems to be comforting especially to many of the new companies just starting up watching their budgets very carefully.
How Long Do Things Take?
Time based billing can create a conflict. What I think takes two hours to someone else may take 30 minutes. The discrepancy can cause big bills at the end of the month which no one is prepared for. Having a monthly flat-fee reduces the risk of this occurring.
Work becomes the focus rather than engaging with the client on a regular basis. If you are only allotted $100 per month to deal with all of one client’s issues, then it is best to spend your time wisely solving the problems efficiently. It keeps everyone on the same page.
New Look at Services
Flat fee servicing offers a modern take on old-fashioned office practices. This presents the clients with a fresh alternative to get their work done efficiently and economically.
Just as an example of pricing in the IT industry, the flat fee rates range between $120-$175 per user per month.
Flat-fee pricing cuts down on the negotiation of time to finish a product. It also leaves the client free to go on to the next task. The company supplying the service knows what is expected of them ahead of time and can go ahead and provide the appropriate results.
