What discount/rate would you offer for working from home?

[fckvwls]

I would charge the same claiming lower costs for the client (not having to pay for the office space, broadband, electricity there etc)
Recently there was a discussion that if you work from home occasionally, usually the enterprise client still pays the overhead office cost, but if we're talking 100% from you clearly can save up on the office costs.
On the other hand a contractor charges for expertise, experience and his home office costs.
The only way these cost would go lower is when the contractor is located where it's cheaper to live, which you already noticed.

If it can be done from your home office, it can be done from Mumbai...

[Moscow Mule]

If it can be done from your home office, it can be done from Mumbai...

Moving to Mumbai is going to put my rate up considerably....

[SorenLorensen]

I wouldn't offer any discount for working from home, agree with those that mention the lower overhead costs to the client. See no reason at all to bring down my rate for doing the same work.

[d000hg]

I wouldn't offer any discount for working from home, agree with those that mention the lower overhead costs to the client. See no reason at all to bring down my rate for doing the same work.

I'm not asking if you think you should lower your rate. I'm asking if people would choose a lower rate for the convenience of being able to choose what hours they work, avoid commuting and/or working away, and generally not having to go into an office?

I know I would, especially in terms of working away from home... I can't see the point personally of earning loads and being away, compared to earning quite a lot being at home.

[alreadypacked]

I work from home and I charge the same rate as I have to provide internet connection etc.

I worked too hard to get to my current rate, not going to drop it for anything including my next role.

[xchaotic]

If it can be done from your home office, it can be done from Mumbai...

Then the only difference is the who, the skills, the experience.
The only reason for the rates to be higher in UK is that the costs of living are higher.
I know quite a few people who still manage to command a £500+ rate for clients in the UK working from homes in Quebec, Prague and Malaysia, because they have niche skills that are still in demand, are so productive and are just worth the money.

[Brussels Slumdog]

The main problem is that if you can do the work at home at say £350
a day then someone else could do the same work for 350 rupees a day.
If you can work from home then leave home and do the job from a sunny location beside a pool.
The whole idea of working is to actually get out of the house.
The whole idea of working is to meet and socialise.

The best of 2 worlds is to work remotely at home one or two days a week.
You can obviously charge a lower daily rate if you have no travel expenses
Take advatage of the fact that you can work locally and build up that war chest because on the next contract you may make less due to travel expenses.

Working at home in winter will result in higher fuel bills

[malvolio]

I try not to make a difference between home working and office based, and if I do it will be limited to the gross cost of travel. Then again, I work the rate from the other direction: I have a minimum amount I will charge for something I can do from my own office at home. I add the gross cost of travel and accomodation to get to the client's site (which you can do on a per day basis and average back; most clients will want to see you occasionally!). I then add a bonus for me depending on seniority of the role and the risk/trouble/irritation factor, which is a bit subjective.

Luckily I usually end up with something quite close to what the client is willing to pay...

[Flopsy]

Maybe you are asking the wrong question.

If you advertise for people wanting to work from home you will attract applications from disabled people and others stuck at home. Also from remote areas where there isn't much work.

You may be able to get a lower rate from these workers as they may not have any many options as the able-bodied (for example) competitors.

[d000hg]

If it can be done from your home office, it can be done from Mumbai...

The problem is not location, if I could find an excellent person in India I'd use them. The problem is that for whatever reasons, finding decent developers who aren't just programmers is harder in cheaper countries. Culture plays a part - some shared knowledge/experience is missing - as do language barriers. And I think education tends to focus on programming rather than software engineering.