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Please Help Me Figure Out How To Bill My Client

by SirLucius
10 replies
How do I go about billing my client when I outsource work? Do I keep the illusion that i"m doing it myself, or am I transparent that "hey, I'm outsourcing this to a programmer...they want $X for this work"? How do I then justify my fees?
#bill #client #figure
  • Profile picture of the author Mike McAleer
    You obviously DO NOT want to share that you are using an outsourcer because it gives the client ideas.
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  • Profile picture of the author sdentrepreneur
    I don't tell my clients I outsource any of the work. You want the appearance that you are a big agency.
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  • Profile picture of the author jeffrey73
    Originally Posted by SirLucius View Post

    How do I go about billing my client when I outsource work? Do I keep the illusion that i"m doing it myself, or am I transparent that "hey, I'm outsourcing this to a programmer...they want for this work"? How do I then justify my fees?
    If the outsourcer charges you $100, then charge them $500. Then tell them that you've reduced the price for them and the other guys are charging $999 for the same job. Most people could care less who did the work as long as they think they are getting a bargain.
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    • Profile picture of the author tryinhere
      Originally Posted by jeffrey73 View Post

      If the outsourcer charges you $100, then charge them $500. Then tell them that you've reduced the price for them and the other guys are charging $999 for the same job. Most people could care less who did the work as long as they think they are getting a bargain.
      ? do not think that a businesses that have been operating for years does not smell crap when they are served it up ?

      You would need to be rolling rolling out your A game if your going in with blanket balls information like that as it would open up and cut deep with some questions for a new player real quick given a seasoned hardened businesman to deal with.

      Just telling people to slam on 5 times the price and then peddle the your getting a bargin song is opening them up for a huge smack in the bollocks sooner than later.
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  • Profile picture of the author TimCastleman
    I bill them my fee, they pay me it and then I pay the outsourcer. The two sides never meet.

    Hope that helps.

    Tim
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    • Profile picture of the author Just Jarius
      They don't need to know that you're outsourcing and they probably don't care. As long as you get the job done how they wanted it done, when you said you would do it, they'll be fine. If anything you could always tell them that someone on your "team" takes care of that portion of the work. That way it makes you look more established and it still seems like its in-house. Either way, don't tell them its outsourced, because they may try to skip past you and look for the source.
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    • Profile picture of the author Dr Dan
      Originally Posted by TimCastleman View Post

      I bill them my fee, they pay me it and then I pay the outsourcer. The two sides never meet.

      Hope that helps.

      Tim
      Exactly what Tim said.

      The client pays me, I hire the outsourcer, then I pay them.

      Sometimes I make 10x to 50x profit, it just depends on what is being done and what I charge.

      I have clients that pay me $150-$500 for a logo and I pay between $5-$20 to have it outsourced. You have to remember that they are not paying you for your time or for what it costs you. They are paying for your expertise. Because if they had to research where to get a logo done, they would probably hire a big firm that will charge them $2,000 to create a logo for them that will look the same as yours you only paid $20-$200 for.

      Just like a mechanic doesnt bill you for the cost of the part only. Most of the cost is for the repairs itself.

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  • Profile picture of the author bigredrassler
    Honestly, no business owner cares how the work is done, they just worry about the final results. If someone directly asked you "do you do all this work yourself?" and you don't feel comfortable lying directly, understand there is very little difference between you outsourcing and a household service provider who you pay to work on your house sending out a bunch of employees who he pays less than he is getting from you.

    But no one will ever ask you. Ever. Because knowing how the work gets done does not answer their WII-FM question.
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  • Profile picture of the author nigelchua
    Originally Posted by SirLucius View Post

    How do I go about billing my client when I outsource work? Do I keep the illusion that i"m doing it myself, or am I transparent that "hey, I'm outsourcing this to a programmer...they want for this work"? How do I then justify my fees?
    Erm...Sir Lucius, your clients are hiring YOU [as the project manager] for a solution(s) they cannot handle, obviously, on their own. Ok, it depends on the terms and conditions of the project, as you can opt to be hired as a consultant, be paid for consultancy fees, and they can pay for anyone you hire along the way, but if they're hiring you to do A job, do it yourself or utilizing anyone else.

    Just note that "anyone else" will represent you, or your organization, in the "serving" of your client's needs. That is your role at all times. They want the solution, and not the details, so it's best to keep it that way for operational soundness. Not to mention better branding and profitability.

    Hope this helps! =D
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  • Profile picture of the author nigelchua
    Originally Posted by SirLucius View Post

    How do I go about billing my client when I outsource work? Do I keep the illusion that i"m doing it myself, or am I transparent that "hey, I'm outsourcing this to a programmer...they want for this work"? How do I then justify my fees?
    Also, it might be good for you to have a standard set of products and/or services and their respective prices, and have a set of 1-3 outsourcers whom you can tap on at whim, to ensure that the work processes remain smooth too. Don't worry about your hiring of outsourcers, does the boss of a pizza parlour apologize when their chefs make the pizza and not the boss himself? =D
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