I want to increase my day rate, what should I do?

[LondonManc]

Lots of good advice. Exactly what I was looking for. Thanks folks. Keep them coming please!

And sorry I should have mentioned - I'm a software engineer in the DevOps & Cloud space. The demand seems to have been high for Kubernetes & AWS etc over the last few years.

What about specialising into a niche - by industry (e.g. legal, insurance, gambling) or by tech (perhaps mainframe stuff etc)? Are the rates usually higher?

Create something you can sell other than your time.

[cannon999]

How would that be helpful? What about this seems industry-specific?

Yes because increasing your rate as a carpet cleaner or would require the same strategy as increasing your rate as a software developer? Some people on this forum..

[DevUK]

Yes because increasing your rate as a carpet cleaner or would require the same strategy as increasing your rate as a software developer? Some people on this forum..

Ok, so now he's answered you and said he's a software developer - what's your advice that's industry-dependent?

[wywywywy]

Create something you can sell other than your time.

I have one. It's a good product (even if I do say so myself!!).

Business wise it's not doing so well though. What I've found is that sales & marketing are something that I'm totally clueless about

[rjoe]

You need to exceed the clients expectations to get an above inflationary rate increase.

If the client is paying average you need to be above average in the quality and quantity of the work you produce or how much responsibility you take on.

If they are paying you below market then it is easier for you to beat expectations.

If you are already getting paid 90th percentile you got to be really good, top 1 or 2% to get even more.

Agree with this, but as Northernlad says be careful on taking on responsibility outside your scope. Nuffink wrong with smashing the work you are contracted for, out of the park; be the cream that rises to the top. I took a low rate to get a foot in the door of my first gig, worked hard for 4 months and managed to negotiate a 50% rate increase.

I've had less luck elsewhere and found that usually the best chance of a rate rise is before you sign the contract.

[_V_]

Agree with this, but as Northernlad says be careful on taking on responsibility outside your scope. Nuffink wrong with smashing the work you are contracted for, out of the park; be the cream that rises to the top. I took a low rate to get a foot in the door of my first gig, worked hard for 4 months and managed to negotiate a 50% rate increase.

I've had less luck elsewhere and found that usually the best chance of a rate rise is before you sign the contract.

This is so true. I've worked contracts where at renewal the client has totally agreed that I was one of the top performers, but unless I was prepared to walk, there was not chance of a rate increase. Rate they said was fixed by the finance dept, everyone gets the same amount for a given role.

I had to get another offer and then show them the email before they would match it.

[lecyclist]

This is so true. I've worked contracts where at renewal the client has totally agreed that I was one of the top performers, but unless I was prepared to walk, there was not chance of a rate increase.

Anchoring bias can work in your favour at interview also (more relevant for permanent jobs).

https://www.verywellmind.com/what-is...g-bias-2795029

Price discovery can be difficult during the negotiation process. Those top rate contracts are not necessarily more difficult -- it can be a case of a business critical project falling behind, or another contractor leaving them unexpectedly.

So add 'improving negotiating skills' to the list.

[hungry_hog]

Contracting 12 years. Much less than many on here.

Around '09 market was frothy (even post Lehman), it was common for PMs with no specialist knowledge to trouser 650 a day (FS, London). There were lots of these "characters" around - smart suit, Jeffrey West pointy shoes, beers with the Directors and they were good to go.

My first rate rise (within contract) was in the those early days, I think my second contract.
One of the other BAs left, project in fire drill mode. At time was on 'low 400' and asked for 'high 400', was granted. Good money at the time for a callow youth. Lots of weekend work, lots of money and a more forgiving tax rate!

Since then no "internal" rises - tended to stay in a place for 2 years and move for a bump each time. Nothing dramatic - 10-15% increase.

Most important thing is attitude, getting on with people and showing you can deliver. At the end of the day many projects are a s....tshow - everyone realises this but if you show good attitude it's better than some whizz kid who alienates everyone or can't get on with with PM.

[d000hg]

Rates will go down on the next 10 years unless you have that super niche skill set

race to the bottom

remote working
new visa rules enabling anyone to come into the UK
etc etc

People were saying this when I started back in 2007/8. The heyday of leaving your job for £800pd to knock out a bit of Java for some dotcom startup is long gone but decent rates are still there for decent contractors. You want to make sure you are never competing with those at the bottom in the first place. Of course IR35 means a hit for relative take-home, I suppose we haven't had long enough to see how that pans out for rates, etc.

Contractors have to be nimble to the market so if remote working becomes the norm, and rates drop, perhaps you decide to move away from London to somewhere with lower cost of living to compensate?