Author Topic: How much should I charge for a set up fee?  (Read 1588 times)

DIANEK1975

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How much should I charge for a set up fee?
« on: August 26, 2011, 12:07:59 AM »
Hi everyone,

I just found this forum a few days ago and I love it!!! So much great information here!
I've been doing MB for close to 13 years now for a company. I'm the only employee that my boss has(employee of the month, every month  ;D) Now I'm  thinking of taking on 1 or 2 clients on the side on my own,   as a single mom I need the extra income, anyways I was wondering how much is a fair price to ask for a start up fee from a new client?

Sriram_Sub

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Re: How much should I charge for a set up fee?
« Reply #1 on: August 26, 2011, 09:08:26 AM »
Hi Diane,
Basically, there are three types of pricing. 1. Based on FTE, i.e a fixed amount for every full-time staff employed on the project. 2. Based on no. of units processed, i.e, a fixed amount for every unit of Demographics or Charges or payments or Denials processed. 3. Based on the collections you make for the provider, i.e, a % on total collections made for the month.
You would need to choose the best one upon evaluating the volume of work involved and the amount of time you would need to spend on the project. The price you charge should be in such a way that, the amount earned per month will be equal to the amount that you could earn if worked on a hourly wage system. Hope this clarified. Else, please feel free to respond.
Sriram

DIANEK1975

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Re: How much should I charge for a set up fee?
« Reply #2 on: August 26, 2011, 01:48:58 PM »
Thank you Sriram_Sub,

Yes I guess each client will be different with the amount that I would need to charge for a set up fee.  I just don't want to overcharge and most certainly don't want to undercharge(which this might happen with the first client) because of the fact that I really don't know exactly how much time it will take me to start the client up and running smoothly. 

Its a learning process that I will have to know on my own, its scary at times when I think about taking on a client on my own, but I have to take that leap if I want to go forward.  Thanks for your reply.