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Many freelancers, agencies, or service providers utilize a rush fee so as to avoid last-minute panicked requests from clients.
In case you run a service business (like a freelancer or a contractor), all the pieces you do takes a specific amount of time. Actually, time is your most useful asset. Which makes it really difficult when a client comes to you requesting something to be accomplished much faster than usual.
In this text, we’ll explore exactly what a rush fee is, the explanations chances are you’ll want to use rush charges in your individual business, when a fee is best, and the right way to calculate a rush fee.
What’s a “Rush Fee”?
A rush fee is a further cost you charge your clients or customers after they need a job accomplished more quickly than normal.
Put simply, clients pay extra for you to complete something faster.
That extra payment is referred to as a rush fee.
Not only do these fees discourage clients from making unrealistic requests, but they also can help your service business in a variety of alternative ways.
8 Reasons Rush Fees Are a Good Idea
Now that you already know what a rush fee is, let’s explore how using rush fees can enable you to in your online business.
In case you’re on the fence as to whether it is best to impose a rush fee on a client, review the explanations below to help make your decision:
Manage Client Expectations
Once you institute a rush charge for a client who needs a project done “yesterday,” you’re essentially telling them you’re willing to expedite their project this time for a fee, but this just isn’t a typical occurrence.
In essence, you’re telling the client: Don’t expect this fast turnaround time on every project we do together. That is a special case and I’m charging you for it.
Maintain High-Quality Work
In case you don’t implement a rush fee as a way to curb overenthusiastic clients, you then run the danger of all the pieces needing to be done “ASAP.”
By adding a rush fee to projects which might be truly a rush, you possibly can ensure you possibly can take a reasonable period of time on all of your other projects—particularly in cases where clients don’t want to pay the additional fee for quicker work.
Manage Your Time & Workload
When all the pieces is urgent…nothing is. By implementing a rush fee, you’re able to prioritize which projects need immediate attention and highest priority.
This could enable you to manage your workload and your calendar so that you satisfy all of your clients—those with rush projects and others.
Make Up For Lost Work
Each time you say “yes” to one project (or to completing a rush project ahead of schedule), you’re saying “no” to something else.
That’s because, when time is your biggest asset in a service-based business, all the pieces has a cost. We call this chance cost. Essentially, you’re giving up the chance to tackle latest clients or projects since you’re busy rushing on a current project.
Manage Your Work-Life Balance
You most likely got into freelancing or running your individual business because you would like a more healthy work-life balance.
In case you don’t implement a rush fee when clients need projects done on a quick timeline, you then’re essentially saying your personal life and health will not be essential. It’s a slippery slope to freelance burnout.
By adding these fees, you get up for yourself, your life, and your health. Rush projects do take a toll and will, subsequently come at a cost to your client.
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Pay for any Additional Effort or Resources
Depending on the project at hand and what else you may have in your schedule, chances are you’ll need to herald others to enable you to get all of your work done on time during a rush project.
In some cases, you could have assets or tools you would like to purchase so as to expedite the push project.
All of those fees may be subsidized or paid for entirely with a rush charge.
Maintain Flexibility in Rates
The great thing about charging a rush fee is it’s 100% optional. You don’t HAVE to tackle a rush job if you happen to don’t want to, but when you may have the beyond regular time and bandwidth, you possibly can increase your income by leaving the choice of up-charging a rush fee.
When to charge a rush fee (examples)
Now that we’re clear on a few of some great benefits of charging a rush fee, you may be asking yourself: when is the proper time for a rush fee?
Listed here are a few scenarios which will cause you to charge a rush fee.
Tight Deadlines
Essentially the most obvious scenario for charging a rush fee is, in fact, when there’s a tight deadline for the work to be accomplished.
For instance, if a client hires you on a Monday and wishes all the pieces for that project accomplished by EOD Friday, you’ll have to put your previous plans on hold and provides all of your attention to this project.
Last-Minute Requests
Imagine you’re working on a project and also you’re almost done. But on the “final hour,” your client calls with a change request.
These sorts of last-minute requests can derail a project and take your attention away from other priorities, making them a great case for a rush fee.
Holiday or Off-Hours Work
If a project is on such a tight deadline that you may have to work during days or times you otherwise wouldn’t plan on working, then a rush fee makes total sense.
For instance, if a client gives you details of a project on Friday and needs to see something Monday morning, you’d charge extra for that. And remember, you never HAVE to say “yes” to these sorts of requests.
Sometimes, clients are crazy.
Project Rescheduling
Chances are high, you’re not working with one client at a time. When one client has a rush order, they’re asking you to put all of your other clients below them in priority.
This could mean rescheduling other deadlines or milestones which may take a lot of logistical work since project schedules can often be a house of cards.
Peak Demand Periods
Depending on what type of work you do, you could have times in your online business if you do a lot more work for clients than others.
During these peak demand periods, it’s perfectly reasonable to charge and additional fee for clients who don’t want to wait their turn in line.
How to calculate a rush fee
Now that you simply’re armed with the information you would like to resolve if charging for a rush is a good idea, let’s discuss how you really calculate a rush fee.
There are mainly two ways you possibly can charge a rush fee to your clients.
- A flat-rate
- A percentage of the project
The flat-rate rush fee
A flat-rate rush fee is precisely what it feels like: you establish a standard amount you charge to rush the project and that quantity is similar each time—whatever the project size.
For instance, you would possibly say, “I can definitely do that work more quickly for you. My rush fee is $350 on any project.”
This protects you a little bit of time and makes it easy and quick to have these conversations.
On the downside, a $350 fee on a $50 project is a bit ridiculous and, likewise, a $350 fee on a $25,000 project might not be value it.
The proportion rush fee
A greater solution is to charge a certain percentage of the project cost as well as to the whole bill.
For instance, you would possibly say, “I can rush this project for you. My rush fee is a further 15% on top of the fee I’ve already quoted you.”
That way, a $50 project incurs a rush fee of $7.50 while a $25,000 project incurs a fee of $3,750.
Remember, you may as well adjust your rush fee depending on how busy you’re and the way much you would like to quit your beyond regular time to pursue this project.
Free ‘Rush Fee’ Calculator
In case you resolve to go along with the percentage-based rush fee, then this free and easy calculator will enable you to determine the whole it is best to charge your clients:
What other freelancers are saying about rush fees
We’ve had plenty of freelancers and business owners in our facebook group ask about rush fees through the years and others have chimed in with some great feedback:
Ben Furfie explained his rush process:
“I tend to say that contractual work only takes place in office hours and that any work that needs to be undertaken outside of those prescribed hours is charged at emergency rates.”
Emma Noel adds a good point:
“[Whether I add a rush fee] is determined by the client and the way often this happens. If it’s for one in all my best clients and that is an unusual project that may only take me half an hour, then no. In the event that they do that on a regular basis, yes.”
For Ian Gay adding a rush rate has gone even higher than expected:
“I recently restructured my rates into standard rate and rush rate (+25%) and sent out letters to all primary clients to allow them to know. I stated that my conditions for rush rate are any job needed a) without reasonable notice; b) require other scheduled work to be rescheduled; c) need to be done during evenings or over weekends. All clients have been completely happy with the structure and already some are saying ‘are you able to do that? Comfortable to pay the push rate’.”
And Mike Baldwin has his whole process down:
“Different jobs get different treatment. Quick jobs get a minimum of the 25 hour rule. Greater jobs like website design, branding and print included jobs fall under the one week rule.
“That also applies to the charge. Smaller jobs I charge a higher percentage than larger ones like website design because I’d charge myself right out of a job if I added greater than 50% to a $2000 job.
“It also depends how busy we’re. I’m not pushing aside job tickets which have been put within the system already.
“One other thing I do on a rare occasion is broker the job out to other designers, keep a small profit and keep the client completely happy. Obviously with a rush charge still applied.”
As to the fee of a rush charge, Paul Kiesche recommends this:
“Add a flat rush fee (listed as a rush fee) based on time and a half of your rate.”
And here’s what Nikki-Ann Thomson has to say about it:
“I’d charge a rush fee if the task was not feasible to be accomplished by the allotted usual and customary individuals inside the traditional timeframe. If I could do it myself and lose a little sleep, I’d at no additional cost.”
Setting Your Own Rush Fee Policy
All-in-all, there are plenty of aspects to be considered when determining what to charge for rush work.
Loads is determined by you personally, where you’re in your online business, how much time you may have, how much you would like the push work/client, and plenty more.
Hopefully, the knowledge in this text has been helpful as you establish if, when, and the way to charge a rush fee.
Keep the conversation going…
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