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I think that's a great perspective - trying to sell T&M to a residential client might be pretty tough, and while I never gave it a lot of consideration, I'm sure I'd have a hard time selling it for the reasons you mention. But the flip side of that - for some web consulting/programming work I do I always charge T&M and I love that work, because I know I'm getting paid for every minute I'm working. Unlike some pre-set contract prices for landscaping, where a goof-up from one guy might mean I work for the next 5 hours for free.
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