I have several clients who want me to work hourly, but I prefer charging by project because it gives me peace of mind. How do you all handle this? Is there a way to convince them, or is it better to let them go?
If you have a client who won't budge on this issue, sometimes it's worth offering a hybrid approach: you charge by the hour but with a maximum cap that's agreed upfront, like "maximum 40 hours, €25/hour, total won't exceed €1,000". They get the security of knowing their spending limit and you're protected in case the project balloons more than expected. Not everyone will go for it, of course, but it avoids that stalemate of "either it's by project or I'm not doing it".
Most clients who insist on hourly rates want that precisely to have control and not get shocked by the invoice, so trying to convince them is tough. The way to go is to nail down the scope, give them a fixed project quote, and make it clear how long it takes - then some will agree to switch to a flat rate, but if they don't accept and you really don't want to work hourly, it's better to just pass on the job.
Don't try to push the issue with arguments about why project-based pricing is better for you. The client doesn't care much about your peace of mind, they want to know how much they'll spend at the end, that's basically it. Insisting just drives people away.
If the client wants hourly, it's time for you to be honest: how long does each thing really take? Because here's a catch that a lot of people ignore - you might think a project will take 10 hours and end up spending 20, then you're really screwed. That's exactly why this client wants control. Before you agree to anything hourly, do a test: time a similar task you've already done, see how long it actually takes, then you know if you can charge a decent rate or if you're going to make peanuts.
My suggestion? Offer a hybrid - propose a quote based on estimated hours, but with a maximum cap. Like: "it's roughly 15 hours estimated, comes out to X value, but I won't go over 18 hours without letting you know". That way the client gets their price ceiling (which is what matters to them) and you get protection against discovering the work is heavier than you thought. If the guy still insists on paying strictly by the hour, then you charge really high, because then you're taking on all the risk. Some clients won't close like that? Just move on, there's more work out there.
Try breaking the project into well-defined phases and charge each phase as a fixed package - that way you convert hours into a final price without haggling over your hourly rate. Like, instead of saying "I charge 80 reals an hour", you say "this first phase (wireframes and concept) comes to 1200 reals", so the client sees a fixed price while you've already calculated how many hours you're gonna put into it. The trick is not to call it "per project" - say you work by delivery, by results, and that changes their mindset. If the client still insists on tracking hours (which is annoying), then yeah you charge hourly but with a maximum cap agreed beforehand, like those guys already mentioned - just make it clear in the proposal that it's protection for them, not for you.
Have you ever tried just refusing the client in that case or do you always give in eventually? Honestly, I think the biggest risk that nobody mentioned is you ending up stuck in a project where the client wants "just another half hour" every week, and then hourly billing becomes a real money drain. If the client really won't budge, I'd suggest accepting hourly but make it crystal clear from the start: you set a maximum number of hours per week (or per month), charge upfront in packages of 10 hours or whatever makes sense, and let them know that overtime rolls over to the next week. That way you get back some of that peace of mind you lost, because it stays predictable even if you're billing by the hour.
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