Client: "Send me bigger bills that I can ignore"

You know, you really should raise your rates a bit. You are selling yourself way short for the services you are performing.

Quick quiz. The source of the preceding statement is:

As a punchline in the "Big Book of Freelance Website Design Jokes"

That hazy world of early morning REM sleep just before the alarm ruins a perfectly fine dream

An actual client email in response to receipt of a bill for website maintenance.

If you chose the third option, you're obviously delusional -- but you're also correct.

I responded to this amazing observation...

Thanks for your concern about my fees. However, you may be overestimating the time it takes to perform a lot of the maintenance work that I do. The updates you requested below, for example, took all of two minutes to complete. Even if I raised my rates 50% that would still work out to a whopping $2.

I've seen folks do thirty minutes worth of work and charge $100 just because the client couldn't do the work for himself, and while he may be willing to pay, I have a hard time believing that any webwork is worth $200 an hour.

But my client wasn't finished...

Hey, remember it's your expertise that matters, not just the amount of time you spend. Our doctors can do a cataract surgery in 4 minutes, but patients pay because they're the best! I still think you should raise your rates.

I've said all along that web design isn't brain surgery; maybe I'm using the wrong medical comparison. Plus, I thought we were paying for malpractice insurance, not expertise.

What's the point of sharing this? Only that I had to send a second notice a month later. I guess my first invoice was too small to take seriously.*

*In the client's defense, I learned that family business had intervened shortly after my invoice arrived, and it got lost in the shuffle. I understand completely. I simply found the whole situation amusing and ironic.

Comments

We need more service providers like you, and more customers like your client. (What kind of economics _is_ that?)

Posted by: Rob at April 4, 2007 09:26 AM

So web design is more like cataract surgery then? ;-)

Posted by: Gwynne at April 4, 2007 10:36 AM

One time, there was a lawyer who's client came in with a big problem. The lawyer told him, "Calm down. I can probably get this cleared up with just a letter." The lawyer sends the letter, and the client is thrilled. A giant lawsuit has been averted with a single letter.

Then the client gets a bill for $5000. He's furious. "How can you send me a bill for $5000 for just writing a letter?"

The lawyer says, "I see your point; I'll send you a revised invoice." The invoice arrives two days later, and says:

  • One Letter: $5
  • Knowing what to say in the letter: $4995
Posted by: Phelps at April 4, 2007 11:03 AM

One Letter: $5
Knowing what to say in the letter: $4995

That right there was worth the price of admission! I've got another round of billing coming up. I might just try this on for size. ;-)

Posted by: Gwynne at April 4, 2007 12:07 PM

Rob, it's probably nothing that Adam Smith would recognize. "Golden Rule Economics" perhaps? ;-)

Gwynne, I guess it's better than comparing it to a hemorrhoidectomy!

Phelps, there's no question that paying for expertise is a fundamental in a free economy, in everything from haircuts to bridge building to brain surgery. The complications arise in determining what's a fair and reasonable rate for such charges, if, indeed, "fair and reasonable" are valid criteria. Some might argue that they aren't.

Posted by: Eric at April 4, 2007 12:20 PM

One letter: $5

Knowing which mailbox to put it in: $4995.

That kind of economics would suit me fine.

Posted by: Jim at April 4, 2007 04:57 PM

Good one, Jim. ;-) Of course, I don't send much mail so the increase in the price of postage might not bother me as much as my mother.

Posted by: Gwynne at April 4, 2007 05:42 PM
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