Archive for the ‘Business Tips’ Category
Hourly Billing & The Treadmill
Wednesday, January 25th, 2012I’ve been running a lot more lately, not because I like it, but because I need to. I do some of my best thinking while I’m running and today I realized that hourly billing and the treadmill have a lot in common
The goal today was to run for 30 minutes. I don’t like to run for time, I prefer to run for distance. When you run for time, there is no incentive to go faster or at a higher incline. The goal is simply to run for 30 minutes. Now “running” for 30 minutes at a 4 mph pace is very different than running at a 7 mph pace. But if the goal is to just last 30 minutes, there is no incentive to go faster because it’s going to take 30 minutes regardless of how fast you are going.
I like to run for distance because it pushes me to get done sooner. You can run 3 miles in 30 minutes or you can take an hour to do it. I’d rather get it done and over with. I’d rather do it well than drag my heels all day about it.
Hourly billing is just like this. Some folks take an hour to do what another can do in 10 minutes. Should the person who can do it in 10 minutes be paid less than the person that takes an hour? Absolutely not. That’s why VALUE billing (or project billing) is far superior to hourly in most cases. While the amount of time something takes can sometimes indicate the value, that’s not always true. The experience and expertise of one person can allow the project to be completed in far less time which is actually of MORE VALUE than taking longer to do it.
If you’ve never run, you can’t just jump on the treadmill and run 3 miles at a 7mph pace though, it takes time and experience. The more you run, the better you get at it and the faster you can knock down the miles. This goes for all kinds of work too, the more experienced someone is and the more time they have invested in a skill, the better they are at it. As a result, they can often complete a task much more quickly than someone who is newer.
Value billing is more specific, you get X for Y, there is no guessing involved. Same thing goes for the treadmill, if someone says they’re going to run for an hour, that doesn’t mean much unless you know how fast they can run.
Now I know that value billing or project billing doesn’t always work. If the scope of the project is very loosely defined or it’s a long list of maintenance type updates, hourly billing may be the only way to manage it, but for most things, we prefer value billing because we’d rather get it done and get off the treadmill.
We are not the best. (Did I really just admit that?)
Tuesday, December 27th, 2011It seems like these days everyone is claiming to be the best at something. You hear it every day, best wireless network, the best hamburger, the best whatever.
I’m going to say something you won’t hear from many business owners, I don’t believe we’re the best at what we do. WHAT?! Who says that? I do.
Let’s be real though, there are better web designers than us, there are better graphic designers than us, there are better marketers than us. We live in a time with a lot of ridiculous talent in our industry. Don’t get me wrong, I care about quality design, clean code, and all the latest industry standards, but we don’t always deliver perfection on every project, there is always something that could be done better. That’s called reality. The truth is that there is almost always someone better at you or your business at what you do — and that’s OK!
But here’s something else, I don’t believe you have to be the best to be the best choice. Like many things, I believe it’s about balance. We provide a high level of experience (we’ve been doing websites since the internet started), we have a large portfolio (from plumbers to plastic surgeons), and we care about people (our clients, our staff, our families, and others) — those things matter.
We’re not the best and I’m ok admitting it. What matters to me is that we are able to provide what our customers need at a price that provides a high level of value for the services provided.
My advice? Stop trying to be or pretending to be the best. It’s ok to not be the best. Be what you need to be, what your clients need you to be, and not what meets someone else’s arbitrary standards.
We’re not the best, but for our clients and many others, we were the best choice for them. I’m thankful for that.



