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Switched from a flat rate to hourly billing for a kitchen remodel and the difference was huge

I used to give one price for a whole job, like $15,000 for a kitchen. Last month, I tried billing by the hour for a similar project in Springfield. I charged $65 an hour and tracked everything with an app. The client got a detailed list of where every hour went, and I made $2,300 more because we found some bad wiring behind the walls that added time. It felt way more fair for both of us. Has anyone else made this switch and how do you handle giving estimates now?
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3 Comments
miles277
miles2772mo ago
Man, I always thought flat rates were the way to go for that kind of work. How do you even give a quote now if you're charging hourly? That extra money from finding the wiring issue is a huge point, it seems way more honest for stuff you can't see coming. I'd be worried a client would get nervous without a set price though, but that detailed list from the app sounds like it fixes that.
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the_beth
the_beth1mo ago
Three grand extra? That's a lot. I'd wanna see the numbers on that. Find it hard to believe a wiring issue that you couldn't see pays out that much extra unless the client had deep pockets.
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emeryfox
emeryfox2mo ago
My buddy in Cleveland did that, made an extra three grand.
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