Episode 6

The Ruby Freelancers Show 006 – Setting Your Rate


March 5th, 2012

1 hr 4 mins 20 secs

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About this Episode


Charles Max Wood (twitter github Teach Me To Code Rails Summer Camp)
David Brady (blog witter github ADDcasts)
Eric Davis (twitter github blog)
Jeff Schoolcraft (twitter github blog)
JT Zemp (twitter github)


Doubling your rate and doubling your business
Exchange of value
Communication counts
Rate setting is about perception
Experiment with your rate
The "gasp technique"
Sales confidence
You may be able to charge more if you can get it done quickly.
Freelance Switch Rate Calculator
Take your yearly salary and divide by $1,000
Rate based on your cost
The cost of employing a person is something you have to cover
"Do the hustle" - Obie Fernandez
What is the minimum that Rails developers should be charging? $100/hour? $150/hour?
Talk to people who do what you do and see if they tell you to raise your rate
If they want you to subcontract to you, you might be too low
Look for subcontracting opportunities if you're willing to lower your rate and pass off the marketing, etc.
Do you lower the rate or negotiate if the client wants lower?
Correlation between your rate and your value
Don't give discounts, negotiate your rate
If you speak first, ask for $20/hour more than your normal rate so you can negotiate to what you want
Put your price out there to filter requests
"We fix $5 haircuts."
Rescue work
Fixed bids
Estimate, add padding, multiply by rate, and round up
Bid on putting in a bid
PERT methodology
Slide Rule Labs Rate Sheet


Shane Perlman - What should I charge? (Eric)
500 Words before 8am (Jeff)
Negotiating your salary - how to make $1000 a minute  (Dave)
How to outnegotiate anyone even a used car salesman (Dave)
Never negotiate with yourself (Dave)
How to win friends and influence people (JT)
Power sales negotiation (JT)
Evernote (Chuck)
Talking to Experienced People (Chuck)