[portland] Rate question

Rich Shepard rshepard at appl-ecosys.com
Mon Mar 28 19:41:05 CEST 2011


On Mon, 28 Mar 2011, Josh English wrote:

> ... extra features added to it. I've been asked to come back as a contract
> employee to get it set up.
>
> I suspect this will take me a day or two, probably over the weekend. I
> can't imagine this will take more than four hours.
>
> What is an acceptable rate to charge these people?

Josh,

   What is the value to the client? I recommend that you sit down with that
third department's decision-maker for a talk. Ask why they want this tool,
what it costs them to continue without it, and what it will do for them if
they do have it. It's a discussion and you want to both understand their
position and, more importantly, have them come to realize the value you'll
be providing.

   Once you set a dollar amount on the value to them of having your tool you
can set a fee as a proportion of that amount. It should be high enough to
make you feel good and sufficiently less than their cost of not having it
that your fee is seen as a great bargain.

   Keep the discussion focused on them and not on you. If they ask you to cut
your fee, ask them what part of the job they want you to exclude. If you
have a productive and effective conversation money will not be an issue.

Rich


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