I just picked up a brand-new client the other day. It was one I’d mentioned a few posts ago that a friend in the company had recommended me to. Mind you, I don’t have any assignments yet, but I’ve now completed paperwork that’s put me on the list of “approved contractors”, according to the contact person. Cool!
They required me to make a bid. For the first time in a long while, I came smack up against a dilemma. Normally, my price is my price. I quote it and let the client take it or leave it. However with this particular client, I wanted to get in the door. I have deep expertise in their industry. I don’t have all the expertise they’re looking for in all areas, but I’ve dabbled in most. Since I was not the only freelancer being hired, I had to consider others’ possible rates. Not knowing what others are charging, not knowing just how much cost was a factor, I adjusted my bid downward. Mind you, I made it a wage I can still live with. I know my limits and my own pain points. I’m content with it.
In a freelance bidding situation when you know you have some competition (not eLance. GOD not eLance), have you ever adjusted your rate to be more competitive? Have you ever regretted it?
It’s case-by-case, I think. As long as YOU can live with the rate you set, it’s really no one else’s business.
I’ve regretted re-setting my rate EVERY SINGLE TIME, so while there are certain areas in which I have flexibility, I take that into consideration.
Pretty much every time I’ve agreed to a lower than normal rate, the client seems to think that means everything’s up for grabs, including deadlines, responsibilities, and redefining the parameters of the job during its course.
When a rate is set at the beginning and met without question, the rest of the agreement tends to stand without niggling either.
That makes me feel a bit better, Devon. There was no haggling. I simply had to provide a price, and I decided on one that would make it worth my time and get myself into what is potentially a very lucrative ongoing situation. Had they haggled, I would’ve been unwilling to go forward.
I’m like you – the minute they start nickel-and-diming you, I lose interest. Like you, having been down that road too often, I know every detail is now up for debate. No thanks!
When I first started freelancing, my first client was the company I had just left . . . I charged them the hourly rate I was making when I was with them, which was half what I was planning to charge other clients.
When I think back on that, I wish I had a time machine!
I used to lower my rates to compete and to get jobs I thought I’d really like. I no longer do either. Although I can’t really say (in general) the lower-paying gigs expected more work of me, I did end up resenting the fact that I could have been making more money elsewhere. So now, that’s exactly what I do–make more money elsewhere. And on the rare occasion that plan falls through, I enjoy the break in workload much more than I’d enjoy giving up my precious time.
All that said, if you’re going into the project feeling like you negotiated a fair rate, then the resentment isn’t as likely. I think that feeling arises most often when you’re talked down in price.
I did this yesterday. It’s an opportunity, where like you, I have dabbled in most areas of expertise they are looking for. I bid low. The person I interviewed with told me I was bidding too low – that this was an Executive position and I was encouraged to go higher. Which I did. It was a good move, I’ve made it to the final round of the interview process. If I get the position there will be a big celebration!
In other projects, I’ve bid low before and yes, I have regretted it because the job usually required a whole lot more than originally discussed or thought.
My one client is driving me nuts, and part of it is related to what you’re discussing here. He never seems to be able to estimate how much work needs to be done. I will no longer give him a flat fee for projects, because they are ALWAYS more involved than he describes (I don’t think he’s trying to pull one over on me; I just think he has a really hard time estimating the amount of writing to be done since he’s not a writer).
Yesterday’s “misunderestimation” (bonus points if you know where that word came from) – product descriptions. He needed “40-50” of 2-4 sentences each. Good thing I quoted him a price per description, because it turned out there were 120 total, not 40 or 50.
I used to bid low with him to get his projects, but I’ve started charging fair rates on a non-negotiable basis. He knows I’m valuable to him, so he pays them.
I agree with Devon on this one. As long as it was a price you can live with and live on and are comfortable with it, it shouldn’t matter to anyone else. I really hope you get the the job. I know you would have a blast doing it.