Now that I have two people working Idaho Power territory with me, I'm struggling with pricing. Do you charge the same hourly rate whether it's me doing the work or my junior auditor? Clients seem to expect a discount for ""trainee"" work but my overhead costs are actually higher now. How do you handle this with your teams?
Pricing strategy for team vs solo work
Warren, I struggled with this too when I started my team. What I do now is charge full rate but position it as ""senior oversight included."" The client gets the same quality assurance but at a more efficient cost since routine work is done by junior staff. Duke Energy clients have been fine with this approach once I explain the value proposition.
I take a different approach down here with Alabama Power work. I have tiered pricing - senior auditor rate for complex commercial accounts, standard rate for routine residential, and a blended rate for mixed projects. Clients appreciate the transparency and it reflects the actual value being delivered. Just make sure your systems can track who does what work.
Both approaches can work. The key is being upfront about your model before starting any project. Georgia Power clients hate surprises on billing. I include a brief description of my team structure and how rates apply in every proposal. Never had a complaint since I started doing that. Clear communication prevents most pricing disputes.