As a consultant my income is largely made up of consulting hours sold, as well as software sales.

I insist on upfront payment for software, but consulting time is normally charged in arrears - as a result, I am constantly chasing up outstanding payments.

I haven't increased my rates for two years now, but I feel that now's the time to do so.

For some time I have pondering over the idea of selling upfront hourly bundles at a discount. For example, if a client bought a 5 hour bundle upfront, they would get a 10% discount on my current rate, and if they bought a 10 hour bundle upfront, they would get a 20% discount, etc. They would then draw down on their bundles and top up when the bundle gets depleted.

I thought the timing would be ideal if I advised my client base my intention to increase my rates from 1 February, together with the offer of upfront bundles at current rates. If they took up the bundle option now, not only would they enjoy my pre-increase rates beyond 1 February (provided the bundle was not depleted), but they would get it at a discount!

What do you think of my idea?

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