Reply To: Fee Options

By Roderick Anderson

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Roderick Anderson

We are mandated to use percentage based fees for our services in my location. The percentage is fixed as a minimum depending on the services, but the variable is the projected cost the percentage is calculated upon. Many competitors will cheat by estimating their fees on unreal and impossible project costs or price/sq.meter.

What I’ve done is flip the formula around, and charge the firm’s fees in three packages, with different scope, so I place the power in the client’s hands to choose, but have taken away the fee haggling and negotiation.  In the three packages, I put a dollar amount per square meter for each package, and this way I have control of how much I want to charge for each service package.

The results have been staggering. Since I put this into effect there have been no price negotiation at all, and all but one of the clients went for the premium package with the highest fee price.