And a little something from me too...

I've got two flat rates I operate when doing my freelance work: one for
professional clients and one for friends/family. The friends/family rate
basically equate to me producing things "at cost" (which in itself has a
certain markup because generally I have no materials cost to worry about -
it's me and my computer suite) and this fact is known by those clients who
fall into this group. They know a substantial discount has already been
applied so they never tend to argue. For me personally this has always
worked fine.

The professional figure is open for a minor amount of negotiation but the
clients don't know this unless they quibble about the figure I present them
with (a figure generated almost identically to how Stephen does it now). The
negotiation usually goes along the lines of

"well, based on the project plan I've roughed out it's gonna cost you this"
"that's a little more expensive than I was expecting/that's over our budget"
"fair enough, how much can you afford/what were you expecting"
"we have got this to spend"

Now if that figure they offer is still acceptable to me (based on worload
and how much of a pain in the arse the client can be) I'll take the work for
what they say. If that figure is tool low it's a case of "well, because of
reasons a, b, c I can't go any lower than Âxxx to produce the work as we've
outlined." and then proceed to chop down the project to fit their budget.

I've implemented this approach at the company I work for and it works pretty
well, but I have found that offering a discount or this budget negitiating
means that they tend to come back to me in the future offering ridiculous
money expecting me to work at lower rates all the time. I do point out to
them that the previous projects were either reduced in price or scope
because of their budget constraints and they tend to accept that. All in all
about 80% of the work I do at the company is at full price by using this
approach.

MOU

P.S. Scope creep is always billed and projects usually get paused until the
client confirms how they project should proceed based on the options and
questions I provide. Reworked figures or additional costs in that event
always accomodate for this delay too (hell yes they're still paying me if
they change a project from under me and they wait around trying to make up
their minds).



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