The Fallacy of the Hourly Price in Consulting

After having already clear the decision that ERP we are going to use for our company and having met the implementation partners,it is time to assess these partners and select the best for your project, and one of the most controversial points, the hourly price.

The hourly price is another fallacy. Many customers base their evaluation criteria on the hourly price. And this is a difficult trap to solve. In this post we are going to explain this fallacy in 3 points.

  1. The question : cost an hour? It’s 100% absurd

This is one of the points with more trap that exists, the question ¿cost hour? It’s 100% absurd. For several reasons. First, there’s the programming time. The speed of programming varies in all consultants and according to the years of experience they have and their capacity. There are abysmal differences. The best consultant can do programming up to 30 times faster. What this one takes 5 minutes the other takes 2 and a half hours. This would be an extreme case, but it is very simple that between good consultants it takes different times between one and the other. There is no human way to control this.

  1. Quality or Speed

Another point to take into account is the quality of the programming, based on two factors, cleanliness and simplicity when programming. The same code can be done with 100 lines of code or with 10. It depends on the skill of the programmer and the knowledge of the tool. By making code simpler with fewer lines, and well documented, this means that in the code I put comments so that the next consultant/programmer will find it easy to modify it when necessary. If the code is well done, maintenance becomes easier, saving costs and maintenance.

  1. Teleworking

Another important point is the number of hours. Nowadays we telework. And the worker marks the hours, well they are really marked by the worker, but then the company in many cases and dishonestly marks the ones he wants. So it is very common policy to mark a cheap hourly price, and then charge double or triple the hours, adding them on the bill.

With all these factors exposed, we conclude that the hourly price factor is absurd.