It’s inevitable that in the early years of your company, you will be making up your prices out of thin air. Odds are good you’re coming out of the freelance culture, where you could say things like, “Oh, I bill $150 an hour, and I think this will take 4 or 5 hours” and your client would say, “Whatever, that’s fine.” They are treating you like a freelancer, and they have a line item budget range. They can see your costs are probably going to fall within it, or close enough, and they don’t need to worry about it.
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