Rate increase - how much to ask for?

[Sausage Surprise]

£1000 a day I reckon (plus they pay your expenses)

[andrewb]

I know that there is a big demand for my skills at the moment and there are places that are willing to pay 40% more that what I currently get.

Really willing to pay (or just advertising high rates to get applicants)? Really willing to pay you? If yes to both (which probably means having an offer ready for you to accept) then you're in a better bargaining position - ask for 40% more.

[d000hg]

Yes I would say I'm more than 40% better than I was 12 months ago.

Why were you so bad a year ago?

[fckvwls]

"Show Me The Money!" on Vimeo

This question reminded me of this.

[Taita]

Yes I would say I'm more than 40% better than I was 12 months ago.

Good for you but your opinion must coincide with the client's view or it does not count for much.

Why do we get so carried away with rates? What would you say if your rail fare went up by 40% or your electric bill went up by 40% on contract renewal?

Do you really think your demand will be empathetically received by a manager in a permanent job who is unlikely to have had his salary increased by more than 10% in total over the last 3 years?

[PorkPie]

If you want justification without having altered your output/productivity, then plump for a cost of living increase based on whichever inflation measure you choose. Still not likely to get it though....

[escapeUK]

Good for you but your opinion must coincide with the client's view or it does not count for much.

Why do we get so carried away with rates? What would you say if your rail fare went up by 40% or your electric bill went up by 40% on contract renewal?

Do you really think your demand will be empathetically received by a manager in a permanent job who is unlikely to have had his salary increased by more than 10% in total over the last 3 years?

My electric bill has gone up vast amounts several times. Its called market rate. You can try and switch suppliers but the chances are they will have put their prices up too or just be about to. Having got a good contractor that you know can deliver do you risk getting someone else is, who might be rubbish, or find that everyone else in the market is charging the same rate the old contractor wanted?

If you want justification without having altered your output/productivity, then plump for a cost of living increase based on whichever inflation measure you choose. Still not likely to get it though....

I got a 33% increase at xmas, just by saying I wanted it, and that I thought it was a reasonable price in the market, and I was quite willing to test my belief in the market place.

[quackhandle]

In my last gig the guy who hired me was a contractor as well (infrastructure manager) was also direct. He was on a decent daily wedge but the client wanted to reduce the daily rate but still keep him. Yeah go figure!

He agreed to the 10% rate cut but got it in his contract that he could WFH two days a week. (Mon-Fri)

But hey, you don't ask you don't get. Or you find another gig.

qh

[VirtualMonkey]

In my last gig the guy who hired me was a contractor as well (infrastructure manager) was also direct. He was on a decent daily wedge but the client wanted to reduce the daily rate but still keep him. Yeah go figure!

He agreed to the 10% rate cut but got it in his contract that he could WFH two days a week. (Mon-Fri)

But hey, you don't ask you don't get. Or you find another gig.

qh

Yep. I'll be signing a year long deal at a slightly reduced rate at the end of this gig and getting 3 days wfh instead of 2. Only trouble is it takes me over 2 years so bye bye travel expenses

[Taita]

My electric bill has gone up vast amounts several times. Its called market rate. You can try and switch suppliers but the chances are they will have put their prices up too or just be about to. Having got a good contractor that you know can deliver do you risk getting someone else is, who might be rubbish, or find that everyone else in the market is charging the same rate the old contractor wanted?



I got a 33% increase at xmas, just by saying I wanted it, and that I thought it was a reasonable price in the market, and I was quite willing to test my belief in the market place.

Good for you. However my point is about proportion not market rate. It is also about the perception and reputation of freelancers, generally.

Collectively, we whinge about tight clients, thieving agents and unfair taxation ad infinitum. This is OK amongst ourselves but I don't think outsiders care much about our 'woeful plight' and extreme or unreasonably exaggerated demands only serve to feed negative views of indigenous UK contractors.