Stating your rate

[jmo21]

Contractor rates only look expensive.

Very true. Permies can't get their heads round paying Joe Contractor £X00 / day, but don't bat an eye lid when a so called 'real consultancy' quotes £X000 / day

[wonderboy]

^ this...you need to talk in terms of "value-added" (well in my work area it's something which I need to do)...otherwise they will just consider you an expensive resource/provider/whatever.

OK thanks for this advice and everyone else's. I added a short preamble outlining the "value added" and set the rate a few quid higher.

[SteelyDan]

Last time I was asked this, I referred them to a previous contract, where I charged the client £60k and saved them £470k...


Contractor rates only look expensive.

^ this...you need to talk in terms of "value-added" (well in my work area it's something which I need to do)...otherwise they will just consider you an expensive resource/provider/whatever.

[kal]

Because I want to maximise my return. I have a number of employment options, such that I am prepared to take a calculated risk on pitching a higher rate with this client.

Simples, ask for 20% more that you actually want and settle for 10%

[wonderboy]

Because I want to maximise my return. I have a number of employment options, such that I am prepared to take a calculated risk on pitching a higher rate with this client.

By the way, I misspoke - I don't mean "employment" in the permie sense of course, I mean providing my services through my limited company.

[wonderboy]

Indeed. If you are going through a middleman your contract is with them and it is only them you should be discussing your rate with. If an agency is involved you have no relationship with the client so keep rate discussions away from them IMO. There are exceptions to this but you need to know how and when and it sounds like you don't at the moment.

If you are pitching yourself at above market rate then you are going to be expensive and in a flat market. Why are you doing this if it is going to be detrimental to your chances of getting a gig?

Because I want to maximise my return. I have a number of employment options, such that I am prepared to take a calculated risk on pitching a higher rate with this client.

[wonderboy]

Can we get some more info, are you trading direct with the clientco?

This may seem obvious but we get some questions on here about people going through agencies but asking whether they should discuss rates during interviews.

I am going direct to the client (*no* agent involved in this opportunity). Communication is currently via email. I am a software developer specialising in C# and OO JavaScript.

[malvolio]

Last time I was asked this, I referred them to a previous contract, where I charged the client £60k and saved them £470k...


Contractor rates only look expensive.

[northernladuk]

Can we get some more info, are you trading direct with the clientco?

This may seem obvious but we get some questions on here about people going through agencies but asking whether they should discuss rates during interviews.

Indeed. If you are going through a middleman your contract is with them and it is only them you should be discussing your rate with. If an agency is involved you have no relationship with the client so keep rate discussions away from them IMO. There are exceptions to this but you need to know how and when and it sounds like you don't at the moment.

If you are pitching yourself at above market rate then you are going to be expensive and in a flat market. Why are you doing this if it is going to be detrimental to your chances of getting a gig?

[CheeseSlice]

When stating your rate to clients (not middlemen like recruitment agents) are there any tricks to sweeten the pill/minimise any negative perception of being expensive? Or should you just confidently state your rate (knowing it will be perceived as above market)?

Can we get some more info, are you trading direct with the clientco?

This may seem obvious but we get some questions on here about people going through agencies but asking whether they should discuss rates during interviews.

[Ticktock]

I know from conversations with others in my sector that I charge above market rates. Not a huge amount yet, but still about 10% over what others tell me they are getting and is standard. I used to charge well below market rates (nearly half!) as I didn't know what the market rate was.

I don't seek to justify my rate. I ask what it is they are looking for. I explain how I would approach their problem, how I work and my approach. I explain how that should help them to address their needs. I talk about where and how I've done this before, and the results. I tell them my rate.

So far it's been working out. To be honest, I'm hoping others in my sector start to push their rates up, then it should be easier for me to get more.

I do get push-back. Sometimes I will reduce my rate, but it's in my interests to push it where I can.

[wonderboy]

When stating your rate to clients (not middlemen like recruitment agents) are there any tricks to sweeten the pill/minimise any negative perception of being expensive? Or should you just confidently state your rate (knowing it will be perceived as above market)?