Rates for projects

[JPJedi]

How do you all figure up your rates on projects that people want you to work on. Cause some like to know the hourly rate and some like to know it by the project.

I think I have put myself in a corner cause I was looking at possibly doing a project and I used MS Project to plan it out and assigned resources, rate, set my work week for when I would be working on the project etc.. Well it came up with it would be about 10K. Should I use that price MS Project said or should I try to figure out a different total? I have different certifications to back my programming experience up as well as being a webmaster.

Also for WF members I would like to discount it more since we are all members here.

Basically I want to make sure i am getting what I should but I don't want to take advantage or someone and I don't want them to waste my time.. Yes I am new to the contracting type art.. I am just use to my good ole "Office Space" type programming job. But I am getting tired of getting hit up by 3 or 4 different project managers for the same issue. Got to love the life of a programmer.

Well thanks everyone for your input. I am just trying to get a baseline of where to start. And it just seems when you have a questions you should just ask it here and you get the answers..

:bowdown:

 

[sleepylee]

Find the hourly rate you'd be willing to work at. Knowing this figure is essential before you go any further.

If you're charging by the hour then you need to make a commercial decision as to where above this minimum point you pitch your rate. Your decision depends on a number of factors but will mainly be related to the state of your market and your competition (and probably things like how much you want the job).

If you're charging by project then estimate the absolute minimum you can charge (using your schedule and your lowest rate that you calculated earlier). You cannot go any lower than this. Use your commercial acumen again to determine where above this rate you can afford to pitch your final price.

I've a background in construction and the tendering process is very similar. Essentially you should be aiming for the highest possible 'Tender' price (and always above your calculated minimum rate) that will still win you the job.

Hope that makes sense.

 

[JPJedi]

Thanks SleepyLee.. That was very helpfull.

I am jsut use to being told what to program and get my salary every other week. So now I am trying to fill my other time with projects, and if possible down the road to become my main source of income.

Thanks again.

 

[sleepylee]

Glad to help.

Choosing the 'right' rate is actually difficult. You've got to factor in your 'dead time' - taxes, chasing leads, marketing, staff issues, bla bla bla... - and make sure you get paid for that, too. You'll probably get it wrong the first time around and most likely you'll end up under recovering for your time. If you can do this while you're still in the 9-5 then that's absolutely the best time for it.