FW: Local vs. Remote Rates

Subject: FW: Local vs. Remote Rates
From: john rosberg <john_rosberg -at- hotmail -dot- com>
To: <techwr-l -at- lists -dot- techwr-l -dot- com>
Date: Mon, 24 Aug 2009 07:27:29 -0500

> Dave wrote:

> I currently live in SillyCon valley, California . . . I'm
> moving to the US midwest where I'll be working with
> people . . . .
> I am not sure how to set my rate. Local (midwest) rates are really
> low when writing work can be found.
. . . . how do you set your rate for remote clients vs local
> clients?
> Any insight and/or wisdom here would be greatly appreciated.
> Thanks
> Dave

Dave -- midwest rates can seem low when compared to those in Silicone Valley -- of course, so do many of the expenses . . . . the overriding factor, for me, when determining rates is what the competition might be.

Regardless of whether I'm sitting in the cube next to the product development team, or half a continent away, I pitch my rate so that it will compare favorably with the competition. This presupposes that I'm not bidding against Indian or Chinese firms, who can bid much lower than I can, or that I have skills/experience that is valuled that they can't match.

My rates for local vs remote customers do not vary, or, at least not because of the location alone. Living in the Chicago area, I would charge a client $x per hour (page, engagement) -- if I am working for a customer in San Jose, I would likely charge $X+ (but typically not as much as someone living in San Jose -- no reason to push the customer away). If I am working with a customer who is physically based in an area where the on-site competition charges less than I typically do, I adjust to $X-, but not much of an adjustment.

I find that customers are generally willing to pay for the skill set and experience thay want, but seem much less interested in where that skill set might be.

Best of luck with the new gig!

John Rosberg
Documentation and Training
john_rosberg -at- hotmail -dot- com
2765 Deerfield Road
Riverwoods, IL 60015

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