Setting Rates

[DWalrus]

How do you know what to charge for work, particularly on site work?
I am too kind hearted for my own good and have done way too much pro bono work or traded for goods. Trading usually gets you into a bad repoire with the customer as they will come to expect this as standard procedure.
I am only doing this on the side to supplement my income and get referrals from family and friends and people I work with so you can see where that can be a little more delicate. For awhile I quit doing it altogether because I felt like the only reason these people called me to begin with is that they wanted something for nothing.
Should I charge a flat hourly fee? Do you charge depending on the job?

DWalrus

 

[chiph]

If you're *not* doing this out of the goodness of your heart, then you need to charge whatever the going rate is for your area.

http://www.realrates.com

might be a good starting point, although it's geared more for corporate consultants.

Chip H.


____________________________________________________________________
If you want to get the best response to a question, please read FAQ222-2244 first

 

[DWalrus]

Chip,

Thanks for the link to realrates. In a sense I do a lot of work "out of the kindness of my heart" because many of my clients are elderly. I have had no idea of what to charge people and whether or not I should charge by the hour or by the specific job if it's a known fix. I suppose I could do both. Real rates is a great tool though and I appreciate the heads up!

DWalrus

 

[magneto77]

Hey guys,

am Sanjay from Melbourne, Australia.

well its always better to have the standard charge, i've done work a few times, but i have a set charge.

I mean at the end of the day if its a IT issue, that they will need to be solved, I am sure they can afford $30-$40 even for 1-2hrs.

Thanks for the web url CHIP_H,

Regards,
Sanjay

 

[JeremyNYC]

If you want to start actually earning money on this type of work (not that that's the only way to approach it--helping out friends is a great thing to do) then here's my suggestion:

-How to Charge:
Charge for your work by the hour. If you work on something and you chase down a possible solution _that you should have known was wrong_ you can always not charge the customer for that. But you'll have to get used to charging people for time when you are chasing something that just turns out to be wrong. That's just the way it is in this business. It sounds like you're a stand-up person, and I'm sure your current clients already know that and your new clients will get to know that right away. They will trust you. You should trust yourself to be good to them.

-How Much to Charge:
Think about what rate you might want to charge, checking with some people in your area who do similar work. Then add 10 or 15 dollars per hour to that. People almost always undervalue themselves. If you charge more for your time than you're sure you can get you will avoid being overwhelmed by tons of work (it sounds like you've already got a full-time gig), you will make sure that when you're working you're dialed in, because you won't want to charge your clients for time when you're just messing around, and you'll feel a little better about each gig, because you'll be making some extra money. Again, the rules are not hard and fast--if someone you really like, and really like working with, can't afford your rate, you can knock it down a bit. Just don't be tempted to do this for someone you like unless they really can't afford it. And don't even think about doing this for someone who can't afford it unless you really like that person--that's a guaranteed recipe for disaster.

Jeremy

---
Jeremy Wallace
METRIX Project Coordinator
Fund for the City of New York

 

[DWalrus]

Thanks Jeremy!

Your feedback is intuitive and straighforward. For that I am truly grateful.

DWalrus

 

[mmorancbt]

My most recent blog covers some ideas to help the part-time (and full-time) consultant - including setting rates.

http://blogs.ittoolbox.com/pm/career/archives/001697.asp

Suffice to say that rules for emergency personnel can apply to charging appropriate fees. If you believe you are doing a favor by not charging or reducing the fee because you are "trying to be nice" or can't bring yourself to charge the nice folks a decent rate, get over it!!

When I was the emergency response team member for a large corporation, the first thing they taught was that you cannot help someone if you are injured - therefore don't be a hero - rushing into dangers way becuase it could cost others their lives if they have to go after you - or because you are unavailable.

When you do not charge, eventually the work becomes a burden - you either cannot afford to help them any longer or you do sub-standard - looking at the clock - type of work. If you are doing a family member or friend a favor, that is not consulting. Chalk it up to "being helpful" and move on.

But, if you are performing a professional service, keep it professional. If you want to provide a discount, make it contingent upon something. For instance, "pay cash and I'll cut my rate to X" or "Commit to 10 hours a month and let me setup your computer for remote access and I can charge x amount per hour/month - locking in a better rate."

Etc., etc., Even non-profit philanthropic organizations must produce enough income, donations, etc. to keep the lights on and peform their service. Don't make clients a burden to yourself or you will soon become a burden to them.

And then you will be really aggravated when they hire someone else and gladly pay their rate because they need the professional services - not the handout.

Just a thought.

Matthew Moran

 

[GlenJohnson]

My 2 cents worth. Where I live, some charge over $100 per hour. The local folks can't afford that kind of money. I charge different for business/personal. I've had retired folks call me for help who are on social security, and there is no way they can afford that. If a business needs help, and I know it's gonna be a right off for them, I charge more. Just my train of thought. Good luck.

Glen A. Johnson
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