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 I haven't used a retainer arrangement before and my client suggested I use a retainer for the project.

Any tips or suggestions for setting a retainer amount appreciated.


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Chris Barker, Ph.D.
President - San Francisco Bay Area Chapter of the American Statistical Association
www,barkerstats.com

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"In composition you have all the time you want to decide what to say in 15 seconds, in improvisation you have 15 seconds."
-Steve Lacy
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I have had a retainer agreement with one of my clients for a few years now. I am obligated to provide them wit a fixed number of consulting hours every month in return for a fixed amount per month. If I go over the number of hours I bill them for the excess amount at my usual rate.

Most often, I don't go over the pre-specified amount but I still get paid the same amount every month. From my perspective, it works very well because I get a reliable income and it helps to plan my time. From the point of view of the client, it helps them plan how to use their consulting resources so they are not faced with situations at the end of the year when they have to spend unused budgets or lose them for the next year. It also means they have a resource available at a moment's notice.

It also signals a high degree of comfort of the client with you and your work. Congratulations.

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Carlos Alzola
President
Data Insights Inc.
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I have used a retainer agreement with several clients. I give a discount on my usual hourly rate; if they book a day a week, I give about a 25% discount

This has worked well for me. One client uses very little of my time, but still pays (I keep asking them if there is anything they need me for).  It also gives me some regular income, which, as a consultant, is a nice thing.



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Peter Flom
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Original Message:
Sent: 06-10-2012 14:45
From: Carlos Alzola
Subject: Retainer Arrangements


I have had a retainer agreement with one of my clients for a few years now. I am obligated to provide them wit a fixed number of consulting hours every month in return for a fixed amount per month. If I go over the number of hours I bill them for the excess amount at my usual rate.

Most often, I don't go over the pre-specified amount but I still get paid the same amount every month. From my perspective, it works very well because I get a reliable income and it helps to plan my time. From the point of view of the client, it helps them plan how to use their consulting resources so they are not faced with situations at the end of the year when they have to spend unused budgets or lose them for the next year. It also means they have a resource available at a moment's notice.

It also signals a high degree of comfort of the client with you and your work. Congratulations.

-------------------------------------------
Carlos Alzola
President
Data Insights Inc.
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