On Fri, May 2, 2014 at 1:22 PM, Jeff Johnson <[email protected]> wrote:
I was wondering if anyone does this or would like to see what others feel
> about this:
>
I have only one rate.
On a project-by-project, client-by-client basis I may offer a discount for
specific reasons: routine work I can do easily, long-term contract
discounts, non-profit/charitable discount, a project/technology I really
want to do, etc.
You can justify a discount on a long-term project because you save the
acquisition costs of starting up many small new projects. Steady,
predictable income has some advantages.
The way that works out is short-term, one-off or emergency or exceptional
tasks pay a high rate, and nearly everyone else gets a discount of some
sort. When a client starts a new project, we both have the option of
renegotiating that discount.
There are political and psychological reasons to frame the situation this
way. Some clients believe they have to haggle ("Never pay retail!") and
this provides a mechanism. Some client projects turn out not to be as
represented, so the discount offer can be withdrawn at an appropriate spot.
Phrasing it as "I can no longer offer you the discount" is easier to
deliver than "I am raising your rates arbitrarily."
Also, in counter-point to Paul McNett's good points: a high rate attracts a
better class of customers. Clients who offer to pay their nephew $30/hr to
build their site should be encouraged to do so :)
It is also a Murphy's Law corollary that you will take a project at deep
discount only to find a golden opportunity the next week you can't take.
Don't undersell yourself, but don't starve, either. Always set your rate
low enough to feel you're offering the client their best deal and high
enough that you won't regret it if you get the job. (That applies to jobs
you don't want to win, too.)
--
Ted Roche
Ted Roche & Associates, LLC
http://www.tedroche.com
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