Misc Contracting Tip About Pricing

Subject: Misc Contracting Tip About Pricing
From: Robin Griebel <rgriebel -at- IS -dot- ALLTEL -dot- COM>
Date: Wed, 29 Nov 1995 13:38:10 -0600

With the recent thread on contracting, I can't help but offer a tip I once
heard from a professional contractor. He said that if you ever accept a
contract project that offers a lump sum which will undercut your standard
hourly rate, don't reduce your rate for the project but throw in the extra
hours free.

For example, if a customer wants to pay you $200 for a project that will
take you 10 hours and you want to do the project even though your hourly
rate is $40/hr, in the final accounting, charge them for only 5 hours and
show them that they received 5 hours free of charge instead of lowering your
rate to $20/hr.

This way, you're not undervaluing yourself, but are instead giving them a
bargain. Obviously, contractors would probably only do this to get
experience, especially if they're new to contracting. But if you're ever in
this situation, this tip might be worth remembering.

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