Should I charge different rates for consulting and web development (same client)

[Paralytic]

Ariosa, the question to ask yourself here is whether the client thinks they are engaging with your company to provide specific services, or whether they are contracting you as an individual to provide those services. I suspect most contractors are in the latter situation (although many won't admit it).

If your client does truly accept they are engaging with a service provider, then you can realistically charge different amounts for different services, and they should have no argument over that. But, if their mindset it that they are paying for you, the individual, i can see them having difficulty in accepting different rates.

Please do let us know what they say.

[Ariosa]

Lance apologies!!
Sure, with pleasure

[Lance]

ladymuck there is no agent, this is all directly between me and the client

I'm not LadyMuck.

No agency is great. Please let us know what the client says.

[Ariosa]

ladymuck there is no agent, this is all directly between me and the client

[Lance]

ladymuck I'm consulting initially for a small piece of work but that will probably evolve into a larger project, partially based on (basically including) the initial one. The second phase will probably involve one or two more devs so it makes sense to me to charge a different rate that would include PM and account managing responsibilities.

go for it.
But don't be surprised if the client sees it differently.
If I was the client I'd tell you to go talk to the agent, but basically, I'm politely telling you to foxtrot oscar.

[Ariosa]

ladymuck I'm consulting initially for a small piece of work but that will probably evolve into a larger project, partially based on (basically including) the initial one. The second phase will probably involve one or two more devs so it makes sense to me to charge a different rate that would include PM and account managing responsibilities.

[ladymuck]

Are you offering a consult and build package for a single project? Or are you consulting on project A and building for project B?

For the former, I'd see it as a package of services and quote a fixed price for delivery with delivery and payment milestones. Make sure the scope is clearly defined with a fee for changes to the scope as it will inevitably creep.

For the latter, then two separate hourly rates could be appropriate as you should be able to clearly demonstrate the time spent on each project.

[d000hg]

I have done this once when I was a joint developer and technical PM on the basis they could find another developer to free up my time to PM as the team grew (it was just be to begin with).
From a proper B2B perspective it makes sense that you supply different things at different rates, but if it's just you it seems a bit contrived to me. Should you expect to be providing other resources (people) then that's quite different.

[SueEllen]

I would charge a median rate for both.

Otherwise you will have the client trying to make most of your tasks fit into the lower rate skill set.

[northernladuk]

northernladuk I don't disagree with most of your points and thanks for adding your comment here.

One thing though - I would think that consulting related to the architecture of a complex system requires more years of experience and as a result offers more value to the hourly rate. On ITJobswatch for example, web developer rates are indeed around £500 (can spike for certain languages) and IT architect rates can be more than £650-£700. There's a considerable difference between these two.

It does but if you search by web developer and then order it by rate the rates are up at £900 quid
https://www.itjobswatch.co.uk/contra...by=3&orderby=0

Conversley if you do lowest first in architect it starts at 338
https://www.itjobswatch.co.uk/contra...by=3&orderby=1

It's hard to compare directly so have to make a call about charging top dollar for each work or a median rate between the two at a level you are happy with.

For me the most important thing is to understand the client. What are they willing to be charged, how much do they value the work, what's your relationship with them and so on. All that would be more useful to me to be able to work out do I go for every penny or can I compromise for long term gauranteed work and maybe the chance of future work. Bit less now gets you the next gig and you start to bring people in and so on.

[Ariosa]

northernladuk I don't disagree with most of your points and thanks for adding your comment here.

One thing though - I would think that consulting related to the architecture of a complex system requires more years of experience and as a result offers more value to the hourly rate. On ITJobswatch for example, web developer rates are indeed around £500 (can spike for certain languages) and IT architect rates can be more than £650-£700. There's a considerable difference between these two.

[northernladuk]

If both roles require an equal level of skill, albeit in a different tech/area then charge the same. In contracting a good majority of people are on a very similar rate. PM, service, developers and so on are all on roughly 450 to 500 top end guys in each discipline on more and the dross on less. So it's a surprisingly level playing field.

You could have a look around the boards to see what a full blow dev and a full blown architect charge but I'll be willing to bet it's not far off.

Have a look at ITJobswatch and pick the contractor section. Put in developer and you can see what the different roles are charging, same for developer.

What you really need to be doing in this day and age is Statement of Work quotes and deliver a set outcome. If you can do it faster you pocket the cash. You shouldn't be doing informal day rate work with clients in this era of IR35 really.

Get them to offer you a piece of work that you quote for not, day rates.

[Ariosa]

Hi everyone,

I've been working with a client and currently making our collaboration more formal with a new contract. I'll be providing consulting (architecture etc.) services and possibly some web development hours as well. Should I have 2 different rates for these two services or do you think it's more common to charge the same daily / hourly rate for my work, no matter the hat I wear every time?

Using two different rates can make things clearer for the client but also less clear for me e.g. which rate do I use for time spent on comms / PM tasks etc? (A third admin rate??).

Thanks!