FAO Business savvy people

[Gavster]

I've just received an email with a line that's stumped me. I quoted a new client (big FMCG company) for a few training sessions. It's really easy money for me, I have all the course content ready. They quickly agreed to the costs via email and included the following line:

"I am happy with those fees – maybe think about how best to present these and ensure all your time will be covered."

To me, that screams "you've undercharged!". They go on to say I should also add £15 to the invoice to cover international transfer fees (they're in Australia).

What do you think? What would you do? Would you respond to that or amend your quote/add some admin time etc?

[Gavster]

Also, I've just found the following in the contract:

"Please enter your proposed rates for each module.

It’s also helpful if you indicate a fee for consulting 1:1 with XXXXXXXX participants, and for Live Q&A sessions (usually 90 minutes) via zoom."

I wonder if I can say "3 x modules as agreed at £xxx per module" which is what I quoted originally, and then say "Additional £XXX for each Q&A session as required" which would be on top of what I've already quoted. I reckon that would float.

[dinny_g]

You have to judge the customer.

You've quoted for the work so if you go back now and increase your costs, it might not come across very well. looking back, there are probably lots of costs you could have reasonably included:

£x to review and amend course for suitability and applicability for customer x
£y per session
£z for each follow up Q&A session
I include x hours of follow up activity after which I will charge £y per hour

but you didn't.

They might pay but black list you with others, they might say no... you'll have to call it.

[Gavster]

Yeah, I'm still scoping out the right fee level in this industry, so it's a good learning. I've charged more than I ever have before for this kind of work, but still looks like it's not enough

[mik]

Maybe they think you are underestimating hours as opposed to rate - if you know you have all the material ready but they don't.

[jamcg]

If they’re in Australia maybe it’s uk costs vs aus costs? Is labour pricier over there vs here?

[KiwiDave]

In my experience looking at purchasing literally anything in Australia is that everything there costs a fortune apart from food, but no one really bats an eyelid about it because they earn serious wages across the board. It's like their earning vs costs for things are in line with most other countries from a ratio point of view, but when those $ amounts translate on an exchange rate everything seems silly priced.

Remember there's insane wealth in Australia based on all the mining, and then everything else around seems relative. Not like the only way to get decent wages is to work in mining, everything pays pretty well.

[Gavster]

Maybe they think you are underestimating hours as opposed to rate - if you know you have all the material ready but they don't.

You might be right, e.g. she's asking if I've covered the time for all my prep/admin work too, as it looks like I've just quoted a price to deliver training sessions.

It's all kinda weird, in the last six months, as my social media following has grown, the rates that I can charge have multiplied, and I've not been able to keep up. I roughly calculate how much to charge for something, then double it, and people often say "yes" . I've had to get an agent to advise me on rates for social media, because the price that brands will pay for a single social media post is totally mental tbh.

[Gavster]

Thanks everyone, you've really helped my brain work through this one figured it all out now, and yes, I am going back with additional costs, which is what they're asking for, essentially.

[MikeHunt]

In these situations, I would make it clear that the costs would normally be higher but you are keen to work with them and willing to go in lower than you normally would. Assuming that you are not selling something different to the expectation.

[dinny_g]

Hi, I'd like a quote for fitting this new kitchen.

Of course, that will be £10,000

That's great - please start

OK, now I should point out that this does not include £3000 for removing the old kitchen, or £1,500 for disposing of the old kitchen, or £1000 Rental charge for using my tools, or £1000 for my time driving to and from your house each morning of £100 for my secretary to process the paperwork or £500 for my accountant to update my accounts with the Payment.

[Gavster]

Lol, it's not a hidden cost, it's actually an additional service:

Hi I'd like a kitchen

Of course, that'll be £10,000

Great, can we go ahead. Can you confirm that includes ongoing servicing on an ad hoc basis.

Ok, the kitchen will obviously be installed and working perfectly for £10k, and I'll charge an additional £300 per service required after delivery.

[dinny_g]

- I'm only pulling your leg Gav...

[Gavster]

[jamcg]

On a semi related note, after randomly stumbling in your milk posts one day and clicking on follow, I do genuinely enjoy your instagram posts. One of the few video posts I don’t bother scrolling past

[Gavster]

On a semi related note, after randomly stumbling in your milk posts one day and clicking on follow, I do genuinely enjoy your instagram posts. One of the few video posts I don’t bother scrolling past

Thanks buddy

[DeskJockey]

In these situations, I would make it clear that the costs would normally be higher but you are keen to work with them and willing to go in lower than you normally would. Assuming that you are not selling something different to the expectation.

I agree with this. "Introductory discount" to show them what you can do.