These pay systems offer predictability as you can anticipate the number of work done whether warranty repair or any other type.Here are some of the other advantages of Flat Rate: Besides, this set price for a specific task helps the client to plan their budget and eliminates the stress involved in tracking hours for hourly rates. Moreover, this billing method makes it easier for the client to understand how much they have to pay. The faster the work gets completed there is more scope for getting new projects. Flat Rate Vs Hourly Rate Pros Flat Rate:įor freelancers who are capable of completing work efficiently on time, a flat rate is the most profitable billing process. Now as we have already discussed flat rate meaning and what hourly rate is, let’s figure out on what part these pricing techniques differ from each other. It is even easy to invoice for hourly work, wanna know? – Check out our article on this! Though these pricing systems are challenging, in some cases it is also beneficial where work is calculated on an hourly basis. This is definitely challenging for remote projects but this also makes it easier to account for the variable involved in the project. This process is effective for long-term projects and is also helpful for in-house projects. For this billing procedure, you need to have an efficient time tracker which will monitor the hours spent working for the client. Track the number of hours worked for a specific project and multiply it with your hourly rates. What is Hourly Rate pay?Īn hourly fee is something that you can charge your clients on an hourly basis. For example, these pay systems benefit automotive technicians and auto mechanics in some projects. Flat rates are also applicable for those projects which are considered more on the services provided than the number of hours worked. In other cases, for a particular set of tasks where you know the value of the project you can imply flat rates. Besides, in a project where estimating the hours of work is difficult one can charge flat rates to avoid complications.įor calculating the flat rates one can implement the hourly rate by multiplying this with the number of hours needed for the completion of the project. For a project with finite deliverables charging a flat rate makes the payment process easier. Scroll down!īefore discussing which is the better option to choose, let’s learn what is a flat rate and what is an hourly rate pay system! What is Flat rate pay?Ī flat-rate pay is when you charge your clients a set price for a particular work regardless of the number of work to be completed. In this article, we will discuss more on this. Each pricing technique has its own merits and demerits. But the hourly rate involves calculating the total amount on the number of hours worked. Charging a flat rate is simpler in which you set a price for a particular task and charge accordingly to your client. The prime difference between flat rate pay and hourly rate pay is how you are billing your client for the task done. It is as per the convenience or the job requirement that decides the process of billing. Some of the entrepreneurs or small business owners charge their clients on an hourly basis, whereas some charge a flat rate. But this process involves various techniques that depend on how you get your job done. Whether self-employed or running a small business, billing for your client is a common process.
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