Payment Structure?

Topper1

I have started a small energy consultancy with my business partner. We will primarily preform energy audits on commercial buildings ie hotels bars etc. Our service includes

1. Review annual energy usage
2. Benchmarking current energy usage against industry
3. Tweaking energy tariffs and bill management
4. Energy Survey:
5. Cost analysis
6. Final Report

We just can't get our payment structure write. Here are just a few ideas for payment from clients.

Do a free survey and report. We base our payment on savings that occur each month against the same period last year. For example, if January's bill last year was €1000 and its €800 this year we take the €200 and this carries on for a six month period. There are two problems here. The first is that the client must invest capital for savings to occur and us as a company to get paid well. The second is that the client may decide not to pay.

The second option is a half up front, half on completion of works carried out.

And the third option is a standard hourly rate.

Does anyone have any suggestions on a good payment structure for our service?

bigneacy

The savings one seems good in theory but it might not work well in practice, as you said - the client might just decide not to pay.

Half up front and half when jobs done would be the best i'd say, it means everyone is happy and its easy to understand.

Topper1

Thanks for the reply. Its much appreciated.