I know ya asked Matt....but I've also been through the contracting ringer....

> I'm trying to establish a loyal customer base, in baby steps.  I'll sometimes 
> do small projects for free, or for a very low flat-fee, to start.  I'm hoping 
> that once they are blown away by the results, I'll get referrals, and the 
> clients will be more than happy to pay a higher rate based on proven results.

First I admit I've done the same thing. Second I'll say that in my experience 
it 
just doesn't work well.  Clients get a deal and run away....yes some are 
loyal....but they also don't want you so busy you can't do their work.

My neighbour is a general contractor and we have our clinet bitch sessions over 
the fence all the time...and you know what...it seems that no matter what kind 
of contracting you do (building houses or apps) customers somehow think the 
normal rules of business do not apply.

What I mean is you cannot walk into the grocery store and ask for a loaf of 
bread for 25 cents when it's a $1.50....you'd simply never think of doing that. 
Well that's exactly what happens to us...

1) "The initial budget is tight but when the project starts making money I'll 
kick some your way for add-ons".  Yeah sure!

2) "Can I pay you later beacuse I don't have the money right now?" Ummm no...go 
ask the grocery store manager if you can pay later!!

I think you see my point.

When I 1st started contracting I had a hard time saying my rate out load....it 
was always the hardest part of the deal.  What I've found over time is you have 
to be firm.  Experience has taught me that I don't want the clients that aren't 
willing to pay my rate.  My rate is fair given my experience.  If you take on 
those folks that start your business relationship by complainig about your 
rate....guess how much more complaining and nickel and diming strats to happen 
;-)

IMHO I'm not over priced...I know what I'm doing or can learn about it VERY 
quickly....I'm worth every penny.

So just a little word of warning about the slippery slope of the dancing rate.

All of the above of course goes out the window when you have to pay the rent 
and 
eat ;-)

Cheers

Bryan Stevenson B.Comm.
VP & Director of E-Commerce Development
Electric Edge Systems Group Inc.
phone: 250.480.0642
fax: 250.480.1264
cell: 250.920.8830
e-mail: [EMAIL PROTECTED]
web: www.electricedgesystems.com 


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