Greetings,
   A company I used to do some programming (ASP.NET) and systems work for recently contacted me and want me to do some contract server installs.

   I'm not too sure on what I should be charging them. When I was doing programming and systems admin work for them, I had a rate of $18.00 an hour. It's a little over a year later, I've gained some more experience and this is a contract position plus there's quite a bit of traveling (about 1.5-2.5 hours driving).

   I was thinking along the lines of $35.00 an hour, plus some form of travel reimbursement? Would it be unheard of to go higher?

   Any input is greatly appreciated.

Thanks,

Greg

How experienced are you with what they want you to do?

Chip H.

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For travel I would suggest charging half your rate for the travel time and the standard IRS mileage rate for any given time period (This usually stays the same for a year but this year it went up from 40.5 cents to 48.5 cents in September).  This is a fairly standard scheme for mileage but along with your rate, can be negotiable.  How much you negotiate these numbers should be based on how many expected hours you will have with clients once onsite.  If you will be working 8+ hour days then cut some or all travel time if you are getting a good enough overall rate.  If you will be working short days then get travel time or you will be used and abused.  You can always negotiate travel based on a guarantee of billable hours as well.

I have always thought that, and the longer I am in the business the more I think that, the higher your price the more seriously people will take you.  So I would double the $35 figure, at a minimum.

By the way Hi Scott, I met some of your collegues at Exact's Engage conference.

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports
www.gainfocus.biz

I agree with dgillz if you were on the open market, but your former employer is going to still look at you through the eyes of an employer and not a client hiring an "expert".  Charging less than $60 an hour really doesn't pay the bills when you are doing consulting work.  Remember that you have expenses and downtime that you have to pay for.  You are available as a contract employee because you have agreed to have downtime in your schedule; this has to be paid for.

Hi Don, I hope things are well for you in your new venture and I'm sorry I missed you at the conference.  Unless I suddenly become a great salesperson and learn social skills, I don't think I'll ever get to go to one of those conferences again.

Great tips guys we'll see how things go when he gets back to me w/ a date to discuss $$. Thanks!

Good advice.  $35 is too low a rate for expertise.  Your job is to position yourself as a value-add for the expertise you provide.  Or as I often say...

"Price is only an issue in the absence of value."

I recently blogged, "Potential Don't Pay" with a section titled, "Don't  B-Rate Yourself"
http://blogs.ittoolbox.com/pm/career/archives/006099.asp

Good luck!  If not this client, you can always find another.

Matthew Moran
Read my career blog at: http://www.cbtoolkit.com
Career Blog: http://blogs.ittoolbox.com/pm/career/
Todo esta bien.. Todo esta divertido (it's all good, it's all fun)

Quote:

I have always thought that, and the longer I am in the business the more I think that, the higher your price the more seriously people will take you.

Here's a little story: Jeff, a guy I'd worked with a bit, was attending a meeting of a local programmers' user group. The presenter exclaimed that a certain piece of advice he'd given a client was ignored by that client: Jeff shouted out: "You aren't charging enough!" This got a few laughs, and I thought to myself that it was a very noteworthy remark.