Asking for a rate increase

[monkeyBoy32]

OK - I've just finished 3 months of my FIRST contract so I'm still really new to the whole contracting game. I was offered another 3 months and I asked for an increase in my rates. Is 3 months too early or is a contract renewal the perfect time to ask regardless of how long I've been working?

I wasn't being greedy, I just think I was asking for a rate that is more in line with what other developers are earning.

[thunderlizard]

You don't want to "ask" for a rate increase. You want to put your prices up and hope that you've judged right so that your customers will still think they're worth paying. It's not like being a staff member begging for a pay rise.

If you've only just set up then you might well go through an early period of price adjustment (I certainly did) until you work out a fair rate, so I'd say go for it.

[SimonD]

OK - I've just finished 3 months of my FIRST contract so I'm still really new to the whole contracting game. I was offered another 3 months and I asked for an increase in my rates. Is 3 months too early or is a contract renewal the perfect time to ask regardless of how long I've been working?

I wasn't being greedy, I just think I was asking for a rate that is more in line with what other developers are earning.

In all honesty I wouldn't do it at the three month point, I would have accepted the contract initially being happy with the rate that I had knowing that I would be looking for an increase at the 6-9 month point.

One thing you have to remember is that at 3 months you're only just starting to become a known entity, if you start out asking for a rate increase at this time you're just as likely to be told that no extension is available now however if you've proven yourself at the 6 - 9 month point they are more likely to want to keep you.

Of course by asking for an increase now you are perpetuating the greedy mercenary ethos of contractors

[Torran]

I would have given it a bit longer than 3 months on your first contract tbh.

Up to you however.

[DimPrawn]

Remember, the true inflation figure in the UK is at least 7% if the truth were told.

Prices/Fees up all round I'd say.

[malvolio]

Wise words, but two things to consider:

Inflation, as mentioned already. Depends to an extent how much your own costs have gone up of course, but you should aim to retain your margin.

Client's management. Miserly buggers at the best of times, they will resist giving you a rise unless you have done something significant outside your job spec to warrant one. Being very good indeed is no use, that's what you're paid for. What extra value have you brought in, that's the test.

[Sockpuppet]

If you don't ask you dont get. Ask they may not agree to it.

The question is not how to "ask" for a rate but how to justify it.

[Jog On]

Wise words, but two things to consider:

Inflation, as mentioned already. Depends to an extent how much your own costs have gone up of course, but you should aim to retain your margin.

Client's management. Miserly buggers at the best of times, they will resist giving you a rise unless you have done something significant outside your job spec to warrant one. Being very good indeed is no use, that's what you're paid for. What extra value have you brought in, that's the test.

I’m with that – how do you justify it?

[DimPrawn]

I’m with that – how do you justify it?

I justify it by pointing out that my prices have risen in line with the market and other clients are more than happy to pay the going rate.

They pay up (usually glad to) or I walk into a higher paid contract.

Petrol was 50p a litre and now it's £1.00. It's the same petrol, only it costs twice as much as it used to.

What's complicated about that?

[Jog On]

I justify it by pointing out that my prices have risen in line with the market and other clients are more than happy to pay the going rate.

They pay up (usually glad to) or I walk into a higher paid contract.

Petrol was 50p a litre and now it's £1.00. It's the same petrol, only it costs twice as much as it used to.

What's complicated about that?

In the context of being in the same contract over a 6 month period I would expect to be able to justify a rise on grounds other than 'if you want to keep me you're going to have to pay more that you have been for the same value'

It has to work both ways doesn't it?