Reply to: Remote working rate

[NotAllThere]

I have one remote client. I charge the same rate on and off site. But the client picks up my travel and hotel expenses when I'm on site.

Generally, I'd consider around 66% of my normal rate for remote working. For this particular client it's lower than that - but only because they pay me in GBP, and the exchange rate to CHF is crap.

( Fixed the poll for you. I'd have added more options, but too many have already voted ).

[Brussels Slumdog]

Bonus to work remote

I have just started a new contract in Genève so I have a swiss rate. I have now learnt that
I can work one day a week at home in Brussels which I consider a bonus as I will have one day less expenses.
The chance to work remote is sometimes only offered once you are on board and should not be considered to reduce your rate.
The client has a budget for € XX and your travelling expenses are irrelevant. What you need to convince the client is that you are more productive working from home at least one day a week.

[Scrag Meister]

Oh yeah and where's the Andy W option?

[Wanderer]

Don't want to sound funny but a lot of people here wouldn't get out of bed for £250/day.

A better question would have been "how much % discount will you accept on your rate for Working From Home". Talking in absolute numbers isn't really helpful.

Try this for a WFH formula:

Commuting time * (hourly rate OR day rate / 7.5) + travel cost + subsistence cost - WFH costs. Calculate it over a month, accounting for days on and off site (you may be on site 1 day a week even if you WFH or WFH 1 day a week even if you are site based) to get an average daily cost for both scenarios.

Then offer the client a discount to your day rate based on 50% the gross savings you will make from WFH.

[scooterscot]

Would not lower my rate.

Once you make one concession...

When my client learnt how much I was spending on trains (on my last job) they almost encouraged me to work on/off site.

[d000hg]

Other than an interlude with a local client, I've been working 100% remote for 2.5 years. I haven't even met my current clients face to face in 18 months of business, and the major one before that we only met several months in when I travelled to LA for a holiday.

You're competing with offshore people regardless. If you've got the skills, it's not a competition you invariably lose.

[dynamicsaxcontractor]

I wouldn't view it as 'having to' but 'choosing to', and that falls within the boundaries of personal value systems. Say it costs me £20/day extra to travel to client-site for a £350/day gig but it's 45min each way. I'd personally consider that 90min of time to be worth £30 to me unless I was in a financial mess and take another gig at £300/day to work from home, but others might prefer to save up that money and splash out £150 at the weekend on a posh dinner with the wife instead. Or if you have a nice commute on a quiet train, that 90min might even be an enjoyable time to read a book and eat your breakfast, etc... it's different for everyone.

Since I do more freelance type work, I can make a business case as well though - I actually could be working those 90min on an hourly rate, earning more than £30.

I think that only a very few roles would be 100% working from home, at least from day 1. If it is a genuine 100% from home you would compete with cheaper alternative working remote hence the big cut in rate.

[Aman]

It depends what the scope of the contract is.

I wouldn't price cheap because I'm working from home, price in (where applicable);

use of home as an office,
additional ICT facilities.
possibly moving home to a property more suited to running a client outpost from,
decorating to standards potential visiting clients would expect
additional telephone /fax lines.
office furniture complying with H&S regs
lighting to comply with H&S regs
physical and data security (they may audit after you start and demand X, Y or Z is done)
social exclusion

Some potential clients wanted me to store spare/demo switches, routers, parts, and in one case aerials.

[d000hg]

Soft benefits are great, but why should you have to lower your rate to work from home (other than what it cost to travel)?

I wouldn't view it as 'having to' but 'choosing to', and that falls within the boundaries of personal value systems. Say it costs me £20/day extra to travel to client-site for a £350/day gig but it's 45min each way. I'd personally consider that 90min of time to be worth £30 to me unless I was in a financial mess and take another gig at £300/day to work from home, but others might prefer to save up that money and splash out £150 at the weekend on a posh dinner with the wife instead. Or if you have a nice commute on a quiet train, that 90min might even be an enjoyable time to read a book and eat your breakfast, etc... it's different for everyone.

Since I do more freelance type work, I can make a business case as well though - I actually could be working those 90min on an hourly rate, earning more than £30.

[dynamicsaxcontractor]

You appear to have answered your own question and not even touched on the soft benefits that working from home can give some people that are worth more than cash.

Soft benefits are great, but why should you have to lower your rate to work from home (other than what it cost to travel)? You are surely going to work as hard and deliver as if you were in an office? You could even argue that you should get a higher rate for working from home, you can do longer hours, client won't need office space for you etc.

[alreadypacked]

My last contract was working in mulit locations in UK, I also worked from home in multi locations, all at the same rate. I worked too hard to get to my current rate, not going to take a lower rate.

[d000hg]

Of course in some cases, the cost of working away can be substantial. If you're staying in a hotel in central London or another city, and buying train or even air fares if you work abroad, your costs over the week might average out as high as £150-200/day.
I'd take £400/day remotely for a role I'd demand £600/day for in Canary Wharf or the Mainland.

[SallyPlanIT]

You appear to have answered your own question and not even touched on the soft benefits that working from home can give some people that are worth more than cash.

I work from home and commute to the London office probably once a month. On one of those days, I have to be up at 5am and don't get in until 9pm. My son's in bed and I've wasted hours of my time travelling.

I would never even consider working in an office again, I get far more work done as there is no one to chat to and cause a diversion. Definitely worth a cut in rate, IMHO.

[northernladuk]

Why would you have to lower your rate to work from home? I always add expenses on top of my rate and that would be what the client saves per day if I was to work from home. I guess if you charged inclusive of expenses I would be prepared to drop my rate about the same as I would spend on the expenses.

You appear to have answered your own question and not even touched on the soft benefits that working from home can give some people that are worth more than cash.

[dynamicsaxcontractor]

Given the fact that you could do such a contract anywhere in the world, but the client is based in London, what's the lowest you'd go for?
Consider the fact that there will be no office time what so ever, so no commute costs etc, on the other hand, no office overhead for the client....

Sorry folks, looks like I can't edit the poll now so assume "£250" is "£250 or more"

Why would you have to lower your rate to work from home? I always add expenses on top of my rate and that would be what the client saves per day if I was to work from home. I guess if you charged inclusive of expenses I would be prepared to drop my rate about the same as I would spend on the expenses.