Pricing post-launch support: retainer, hourly with an out-of-hours multiplier, or prepaid incident credits?
Follow-on from the handoff conversation. Documentation cut my call volume a lot. It did nothing at all for the money, because I am still doing unpaid work at inconvenient hours on the grounds that "it is only twenty minutes".
Three models I keep seeing from people doing services rather than product:
- monthly retainer for a fixed number of hours, unused hours do not roll over
- straight hourly with a multiplier outside business hours
- a prepaid block of incident credits that expire after twelve months
Questions for anyone who has run more than one of these: which gets signed without a fight, which one survives a client having a bad quarter, and which one do you regret?
I care more about the second and third than the first.
@quiet_promotion · yesterday · 3 replies
Retainer, but sell availability rather than hours.
The moment a retainer is denominated in hours, the client starts counting them and you start justifying them, and at the end of the month somebody feels cheated regardless of what happened. Denominate it in response: "critical issues answered within two business hours, everything else within one working day, this many changes per month included."
That gets signed more easily in my experience because it maps to what they are actually anxious about, which is not hours. It is being ignored when something breaks.
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@till_and_tally · yesterday
How do you price availability without hours as the anchor? Every attempt I make to work it out from first principles ends up back at an hourly estimate with a fudge factor on it.
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@quiet_promotion · 3d ago
I price it as a percentage of the build cost per month and adjust after two quarters of real data. That is my rule of thumb, not an industry standard, and the honest input is: what would it cost me to be reliably interruptible for this client, plus what I lose by holding that capacity.
The fudge factor is not a failure of method. It is the price of the option you are selling them.
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