When Time-Based Pricing Works

Time is money : clock hands on $100 billsWhat is most fair?

By Ed Mendlowitz
Call Me Before You Do Anything: The Art of Accounting

Back in 1980, I got a pretty large client and quoted a fixed annual fee to start, which would cover the routine regular work.

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After about three months I was asked to suggest some methods of compensating highly paid managers and to present them at a meeting in two weeks. I put together a memo with a few suggestions. When I showed up for the meeting, there were four other “groups” who were given the same assignment. One was the client’s law firm, one was the personal accountant for the client’s lady friend (who later became his wife), another was an insurance agent and one was an employee benefit plan specialist.