Reply to: How to maintain/increase a good day rate

[NorthWestPerm2Contr]

What I did was get a few clients who know me. I now work for them on a part-time basis. Most contractors (and their agencies) want a 5 day a week x-months contract. What clients often need is someone a few days per week or month. If you can fill that gap, you can charge a premium rate. If you can work for two clients in one day and charge both, you're really quids in.

That's an obvious solution but its a lot easier said than done. For a start those kind of clients are few and far between.

[NotAllThere]

What I did was get a few clients who know me. I now work for them on a part-time basis. Most contractors (and their agencies) want a 5 day a week x-months contract. What clients often need is someone a few days per week or month. If you can fill that gap, you can charge a premium rate. If you can work for two clients in one day and charge both, you're really quids in.

[jamesbrown]

You can access very high (effective) day rates through fixed price work, but they're generally very short-term contracts and they usually come from existing clients or from tenders (so, once you've factored in the time for the tendering process...).

[d000hg]

The only ways your rate will increase faster than the market rate changes are:

1)Gaining more experience - over time you will become one of the most experienced around
2)Gaining new skills
3)Become a known specialist in a field

[psychocandy]

All depends on personal circumstances I reckon. My annual earnings/invoicing graph is like the worlds scariest roller-coaster, fortunately I am at the top of a hump now but I have fallen off a cliff in the past (all knowledge and skills became routine and worth NMW + a couple of quid).
ALWAYS have one eye on the next 3-5 years, how is the market changing, can I setup a plan B (mine is investing in shares) to insulate me from this dodgy game.
Never start living at your top rate level, you need to be able to sleep at night if things take a downturn. Treat it as a fortunate bonus.

Agreed. Even my bottom rate (which I'm on now) pays the bills. Nothing else mind.
But, as I've found it, a low rate in the hand is worth 1000x more than bulltulip promises of decent rates.

[lukemg]

All depends on personal circumstances I reckon. My annual earnings/invoicing graph is like the worlds scariest roller-coaster, fortunately I am at the top of a hump now but I have fallen off a cliff in the past (all knowledge and skills became routine and worth NMW + a couple of quid).
ALWAYS have one eye on the next 3-5 years, how is the market changing, can I setup a plan B (mine is investing in shares) to insulate me from this dodgy game.
Never start living at your top rate level, you need to be able to sleep at night if things take a downturn. Treat it as a fortunate bonus.

[NorthWestPerm2Contr]

SQL Server Dev rates can vary from £200 to £500 and beyond
My first 2 contracts were just over the £200 mark back in 2006

My first contract was £250/day. I hope I never have to go back to that rate but if I am forced to then I will.

[Spacecadet]

It was to illustrate the point that I can't imagine any market supporting a 250% variation.

tulip Rate - £100 - £250
OK Rate - £350 - £875
Good Rate - £700 - £1750

Only the real bottom end of the market looks realistic there.

You have since partially answered the question by saying you are effectively in 2 markets, but even that makes depressing reading.

SQL Server Dev rates can vary from £200 to £500 and beyond
My first 2 contracts were just over the £200 mark back in 2006

[oscarose]

do a good job - simple

[northernladuk]

You got lazy, sorry!

You should always be aware of the median market rate.
That way, you treat any higher difference as a windall, or bonus.

If you are used to an unusually high-rate, you are going to feel short-changed when going back to median rates. If you're not careful it might show in your demeanour at clientco.

Sitting around waiting for an equally higher rate means not earning, then your annual gross may come down.
Better to be invoicing than not. You never know, if you keep getting renewed, you might get increases, and be right back at the top.

Staying out of the game has too many pitfalls compared to being in.

Ultimately, up to you, though.

Nice bit of advice. Also never lose sight of how much better these 'below market' rates are than permie land. They hardly put you on the breadline.

[Ticktock]

I'm starting to come to the opinion that any rates actually advertised are going to be below market rate. I've hovered around the same rate for the past 3 contracts, give or take a little extra I got when I had to do a Mon-Fr away gig and little less I accepted to get my foot in the door with a consultancy.
If I see anything advertised for my skillset (which is fairly rare) then it tends to be at about 50-85% of my personal median rate. My current gig was advertised by a number of agents, with rates from 50% up to 75% of what I am being paid.

I ignore rates I see on Jobserve, stick to my guns on rates (with limited flexibilty for negotiation, of course) and I'm doing fine with finding contracts.

[evilagent]

4 years into contracting and I have managed to reach rates I would never have imagined when I first started off. It's the kind of rate I would be happy with for quite a number of years. I am just starting to worry that I will struggle to get such a good rate again. This is one of the few contracts where extension possibility seems slim at the very best (can't go into details why). Otherwise I'd stick around in this one for a long time.

Looking at roles on-line, there are no other roles paying this rate and I just worry that I will have to drop down again, which while not the end of the world is not what you want to do as a "business".

Anybody else been faced with this and how did things go?

You got lazy, sorry!

You should always be aware of the median market rate.
That way, you treat any higher difference as a windall, or bonus.

If you are used to an unusually high-rate, you are going to feel short-changed when going back to median rates. If you're not careful it might show in your demeanour at clientco.

Sitting around waiting for an equally higher rate means not earning, then your annual gross may come down.
Better to be invoicing than not. You never know, if you keep getting renewed, you might get increases, and be right back at the top.

Staying out of the game has too many pitfalls compared to being in.

Ultimately, up to you, though.

[Kanye]

(although I did wonder if poster was taking the piss a bit when suggesting day rate of £1750. Dont see this too often on jobserve).

It was to illustrate the point that I can't imagine any market supporting a 250% variation.

tulip Rate - £100 - £250
OK Rate - £350 - £875
Good Rate - £700 - £1750

Only the real bottom end of the market looks realistic there.

You have since partially answered the question by saying you are effectively in 2 markets, but even that makes depressing reading.

[psychocandy]

Isn't this dodgy? You're still employed by YourCo even if you're not in a contract, and the whole point is you still take that salary regardless.

More likely £150/£375 split - bottom end support type gig to keep busy.

Nope. Without wishing to start up the JSA argument again. MyCo provided P45, and stopped paying salary to allow me to claim JSA. Perfectly legal.

Not quite right on the rates BTW :-)

(although I did wonder if poster was taking the piss a bit when suggesting day rate of £1750. Dont see this too often on jobserve).

[d000hg]

Although, to be fair, because I havent worked for a few months theres salary to catch up (before end of tax year - used to pay £641 but gotta double that for last few months)

Isn't this dodgy? You're still employed by YourCo even if you're not in a contract, and the whole point is you still take that salary regardless.

That's mad. Dropping from £875 to say £350 or say £1750 to £700 at the top end of the market must be a killer!

More likely £150/£375 split - bottom end support type gig to keep busy.