Contract rates not obeying inflation

[KentDogWalker]

Seems that hardly any clients are matching inflation with the rate, rent is going up, food is going up, bills are going up, contract rates the same last seven years

[TheDude]

Seems that hardly any clients are matching inflation with the rate, rent is going up, food is going up, bills are going up, contract rates the same last seven years

Depends on your skillset.

[ladymuck]

"Obeying inflation"??

What a curious phrase.

I didn't realise that inflation was some demanding omnipotent presence that all must bow down to.

So when inflation is low and you're earning several multiples more than permies, you don't have a problem, but when there's a little bump in the road and it starts to look like flashing your cash on fast cars and faster women wasn't quite the recipe for long term stability you're now looking for someone to blame?

[Guy Incognito]

Seems that hardly any clients are matching inflation with the rate, rent is going up, food is going up, bills are going up, contract rates the same last seven years

I managed to achieve a rate in 2002 that is 85% of my current rate.

If it had increased in line with inflation that figure would be 150%.

Mind you in those days a 32 inch TV cost £1,200.

[Lance]

Seems that hardly any clients are matching inflation with the rate, rent is going up, food is going up, bills are going up, contract rates the same last seven years

Rent and food are not business expenses. So why would a client offer your company more money for those items when they have staff members who do actually have food/rent to pay?

Maybe you should just give yourself a pay rise to cover those extra costs?

[northernladuk]

"Obeying inflation"??

What a curious phrase.

I didn't realise that inflation was some demanding omnipotent presence that all must bow down to.

So when inflation is low and you're earning several multiples more than permies, you don't have a problem, but when there's a little bump in the road and it starts to look like flashing your cash on fast cars and faster women wasn't quite the recipe for long term stability you're now looking for someone to blame?

Generally it's something brought up by people that don't really understand business and let the price of bread dictate their rates. He also doesn't understand how to run his own business as he is perfectly positioned to give himself a raise to cover the cost of living.

The title should really read 'I can't negotiate hard enough to cover the cost of living in to my rate'

[eek]

Generally it's something brought up by people that don't really understand business and let the price of bread dictate their rates.

What he really means is he isn't negotiating hard enough to factor it in.

Or his skillset has become a commodity so rates have fallen to reflect the number of available people willing to do it at the current market rate.

[NowPermOutsideUK]

Just to give some colour - Rates used to be 650 a day in 2010 and were plentiful outside IR35 - Fast forward ten years and they have not moved much and now require you to be insideIR35. They should be 850++ just adjusting for the under reported inflation CPI gauge

[malvolio]

Just to give some colour - Rates used to be 650 a day in 2010 and were plentiful outside IR35 - Fast forward ten years and they have not moved much and now require you to be insideIR35. They should be 850++ just adjusting for the under reported inflation CPI gauge

Why? The client's costs have gone up significantly (or hadn't you noticed?), so they aren't going to increase their overheads. Keeping yourself solvent on £100k-a-year-plus income is not their problem. You want £850 a day, sell your client the reason why, don't simply demand it.

[dsc]

Why would the client want to pay more? You are the one dictating rates, if you feel like there's less money in your pocket each week, then increase rates.

Normally service costs go up with inflation as business costs go up (energy especially, but also employees wanting raises due to inflation), if you work from home and don't rent out an office space and / or don't have to travel a lot to do your work, then I very much doubt you have increasing costs.