in reply to Freelance and Pricing

Good question.

Recently I got such a job for a company that's currently expanding and is in a state of distress, and I honestly didn't know what to charge, seeing how this was my 4th job ever, and my first real programming job, that is where i was hired to program, and not ended up doing some.

Anyway, it was also my first contract position. I had no clue where to start in even considering what to charge, so I asked my Java teacher(yes job was Java too) who has been in the business for over 25 years. This guy really had some rap sheet. He did everything from writing monitoring software for cores at nuclear power plants, here(US) and in Japan, to writing database packages ...

So I ask him, "You know what I did it's a simple servlet to query a database and spit back some info in a nice html template. What do you think I should charge? I figure since this is going through the college, I'd knock off 10% off market price. So what do you think?"

So he says, "Oh $50.00/H, just charge $50.00, that's what I'd charge if I were you."

I was very pleased, and then he says "Next time, charge a $100.00/h."

So after you thought about all that, tally up the number of hours you think it'd take you to do what you need to do, and then tack on an extra hour(or two) for each task. Charge $50/h(or more ;-) for all the time you actually do programming, and about $30 for all the time you spent talking, negotiating, and installing the thing. Add up all the numbers, and then tack on an extra 1-4 hours for those just in case situations(at $50.00/h ofcourse), cause something will always go wrong, and let that be your price for the job.

They'll get a reasonable price, you'll be compensated nicely(if you do your job right), and everybody will be happy.

Keep in mind ofcourse, that it took me about 10 hours to write the sucker, plus about 2 hours of research, and 2 hours of documenting time. My just in case time came to about 3 hours, and they'll be rehauling their servers soon, so i tacked on an extra hour on that. They thought they got their moneys worth, and so did I.

 
___crazyinsomniac_______________________________________
Disclaimer: Don't blame. It came from inside the void

perl -e "$q=$_;map({chr unpack qq;H*;,$_}split(q;;,q*H*));print;$q/$q;"

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Re: (crazyinsomniac: my experience) Re: Freelance and Pricing
by Corion (Patriarch) on Mar 19, 2001 at 12:45 UTC

    The last sentence is what I consider the main key of doing business.

    Both sides must consider the deal they made a good deal.

    This of course means for anybody considering a deal, that you should not do it if it is clear that the customer can't be content with what you deliver because of bad specs, general uselessness of the product or plain overengineering of a process that already works well without computers.

    Creating a win-win situation should always be the goal in negotiations; if your partner feels like he's got the bad end of the deal, he'll have to try to press you harder later in the project to get out the moneys worth without paying more.