Forum Moderators: LifeinAsia
Right now, I work for USD 13/hour at a job that sometimes uses my skills, and admits they underpay me. I think, and salary surveys in my field confirm, that I should be worth about USD 18-20/hr plus benefits even in this part of the country if I were a newly hired full-time employee. How should I figure out what I ought to charge a client if I'm contracting instead? I don't buy developers' time, so I really don't know what price range I'm likely to be competing in.
Secondly, how do I answer the RFP? It tells what they want as results for modifying code they already have, but I haven't seen the code I'd be modifying. If they've held previous developers to these same standards, then it ought to be pretty clean and well documented, but I don't know that they have, don't know what their relational data model is, and don't know what RDBMS they are using, though I'm guessing a particular major player that I have no direct experience with. (They already know which RDBMSs I do have experience with.) Does one answer with an hourly rate and an estimate of hours needed? Does one answer with a flat fee conditioned on seeing the code first? Does one ask for part or all of the money up-front?
Please help. I'm a good techie, I swear, but I don't know much about business yet.
are you a contractor? or will you be an employee? If you're an employee, then that's way to little (unless you're in the midwest or the deep south).
the answer really depends on where you live and what's the standard of living there.
If you're a contractor, then, do you have a good accountant?
I've seen your posts, and you're easily worth twice what yer makin' now... :o
I can't answer your question directly either - I'd advise calling them and asking them the questions you've posted. If they start asking you anything, just tell them you'll discuss that later, and that you really just need a quick answer to your questions (being polite, of course).
Remember that as a contract employee, you'll have no health benefits, insurance, etc., so take whatever you think you're worth, and add about $30K (per man-year) for "overhead".
I can't see how you could submit a proposal if the actual job process is as ill-defined as you state.
Jim
Jim - Thanks! It's nice to know *someone* thinks I might be good. In the last year, I've twice been flown out of state for interviews for what looked like really cool jobs (You might have heard of Patrick Ball and his work with data systems for human rights? Fun interview, nice guy, wish he'd hired me.), but nobody else has so much as acknowledged that they got my applications. It's also nice to know that someone else thinks that the specs I have right now are too vague to submit a solid bid. I was afraid I might hear that I was just supposed to have a sense of how much to charge based on years of experience and a sixth sense.
As a contractor, you will be able to charge a higher hourly rate than if you are hired full time. Companies pay more for contractors and consultants because they do not have any office space costs, administrative costs, or benefits costs of having you as a full time worker. IN addition, they can get a contractor exactly when they want to, for the time period they desire.
Because you have more financial burden (as jdmorgan stated) you can command a higher rate.
Factor that in your bid. Also, factor in that you do not have a proven contractor track record (if I read correctly). Sometimes it is good to bid lower for an initial job, in exchange for a referral/testimonial and the possibility for future business.
I would go somewhere above your current hourly figures, but not so high as to be competing with established contractors with proven track records. This makes you an attractive option.
One other quick point.. make sure EVERYTHING is detailed in the written agreement, as well as an hourly rate for adjustments, additional programming features, etc.
The sort of issues I have been grappling with recently so here are some posts that I have come across and even printed them.
See BoL's post
[webmasterworld.com...]
[webmasterworld.com...]
There were others but I cannot find them right now.
Cheers
<added>
if that is you in drag in Matinique you could always change direction :) :)
www.earlham.edu/~martinique/?slide=3&page=slide
</added>
Commission SEO work: work it or leave it
[webmasterworld.com...]
Difficult Situation - Consulting
[webmasterworld.com...]
Dealing with Clients
[webmasterworld.com...]
Close Encounters of the Client Kind
[webmasterworld.com...]
Fees
[webmasterworld.com...]
Web Design Contract Issues
[webmasterworld.com...]
How Much to charge
[webmasterworld.com...]
How much should i charge
[webmasterworld.com...]
Cheers and good luck
<added>
had to change a link, oops
</added>
[edited by: ukgimp at 2:10 pm (utc) on Oct. 22, 2002]
Yet, although I must be competitive, in light of a proven background, you must demonstrate your knowledge, even with printouts, photos, pictures, etc. Words can quickly tire a listener.
If you're serious about growing your business, then seek an accountant. They'll tell you the proper forms you need, what you are entitled to write off etc. You may operate at a loss for a year, but most business do, some for 5 years. That's normal.
The important thing is to stay on the right side of the law.
Martinibuster - yup, deffinitely want to stay on the right side of the law.
Everyone - Thanks!
