Comments for Pay By The Hour

Pay By The Hour

2005-05-12T04:40:50Z

I talk to a lot of consultants, freelancers, and small businesses who do web work, and I used to be a freelancer myself, so sometimes I get asked for advice on how to price one's goods and services.

I think I came up with my best suggestion today, and it involves only two simple steps:

Slap the client in face.
Tell the client your hourly rate.

If the person looked more shocked, horrified, offended, hurt, saddened, or wounded by the slap in the face, then you are still pricing yourself too low.

Your mileage my vary, this is not to be construed as legal advice, eye-poking may be substituted for slapping in some states.

Comment from Pid on 2005-05-12

2005-05-12T09:53:56Z

That sounds about right. I do development work on the side and, fortunately, get most of my work through a design agency who shoots potential clients in the leg first, then slides the rate in. My rate looks light next to theirs.

Comment from Trent on 2005-05-12

2005-05-12T14:30:04Z

You must have been wildly popular with this technique. Any warranted reason to connect the adoption of these "two simple steps" with the fact that you "used to be a freelancer"? ;)

Comment from brainwidth on 2005-05-13

2005-05-13T10:33:01Z

I'm a junior associate at a large law firm, and I am repeatedly amazed that our clients pay my hourly rate for a recent law school grad.

Comment from NitiB on 2005-05-14

2005-05-14T21:48:55Z

I'd think that reversing the order might work better, no?

Comment from donnie j on 2005-05-15

2005-05-15T05:40:10Z

The best is when you're in a small town with the the major industry being construction. Try discussing web standards with company owners who regularly wear hardhats - I often times don't even discuss rates until we get past at least agreeing on the fact that a web presence is beneficial.

Comment from Sthitaprajna on 2005-05-17

2005-05-17T05:17:22Z

Heh. So true. In my hometown, people had HUGE problems with my hourly rate, maybe because they thought i was too unqualified certificate wise, or because of age. Whatever, I dont think I used the slapping technique.. though I've been tempted on MANY occasions.

Comment from joe on 2006-11-27

2006-11-27T18:51:48Z

But what if you consult with non-profits occasionally? You can't charge them nothing or they won't value the work you do and you won't be bringing home the bacon (or tofu or hufu). So is there a "divide by 2 or 5 or 10" in there for 501's?

Comment from Stephen on 2006-11-27

2006-11-27T23:31:01Z

As someone on the hiring side, here's my advice on how to deal with high hourly rates.

(1) It's like dating: Just keep asking and asking. You'll eventually find someone who will happily work for your rate, however low it is. This takes time, and you need thick skin, but it saves money.

(2) Only hire people to do things that they have done before, in pretty much the exact style that you want. High priced contractors are often talented enough to do new things and do them well the first time out. But what you want are low priced contractors who can only do one thing, but do it well.

Comment from Michael Z. on 2006-11-27

2006-11-28T03:06:30Z

Reverse the order, and make step two optional.

Tell them your hourly rate. If they so much as flinch, then you may as well wind up and slap as hard as you like, because it's best not to sign a contract with them.

Comment from Michael Spencer on 2006-11-28

2006-11-29T00:58:07Z

I've my own succinct summary for proper pricing:

If you never lose a job because your fees are too high, then your fees are too low.

And there's a corollary, of course; get to know you competition- your colleagues- have lunch and for god sake talk about fees. There is nothing wrong with consultancy that a little price fixing can't fix.

â€“ms

Comment from Paul Ducco on 2007-03-06

2007-03-06T22:15:59Z

It's always daunting when you increase your freelance rate, the simple fact is if you're good at what you do and make the rise appropriately the amount of work you do will not suffer.

Comment from Jason on 2008-01-03

2008-01-03T15:02:23Z

Here's a step.

- Try to avoid clients like Michael Z.

It saves time, and headache. Never lower your price.

Comment from chiarolaluna on 2009-04-15

2009-04-15T13:33:50Z

I'm currently starting as a freelancer, and I understand very well that the hourly rate should be held at an appropriate level, but I've often been denied a project because my pricing was too high.

What about that? Should I just keep going and looking for other jobs?