Contractor Rates

13 Aug 2009 - 4:53pm
5 years ago
9 replies
600 reads
Sunny Medwed
2009

Hmmm... my last email should read contractor rates. For the first time
ever, I wish I had sent my message via my iPhone ;)

<As a contractor, I'm trying to get a handle on how the economic
situation is affecting our compensation. I'm not expecting anyone to
divulge their information. However, if you're interested in sharing feel
free to send me the percentage your rates have gone down the last 2
years (if any). Accompany this with the years of experience. If there is
interest I'll package up the average and send it out.

OR

If there already is current data out there, please pass it my way.

Thanks.
Sunny>

Comments

14 Aug 2009 - 6:36am
David Poteet
2009

Our rates have stayed about the same in terms of the hourly rate on
which we base our estimates. But we've gotten more aggressive in
finding ways to do things more efficiently. We do an estimate based
on hours but then quote the client a fixed price. We usually mark the
estimate by a percentage to give ourselves some wiggle room.

If you're working as a contractor to do whatever they ask (and not
on a defined project scope) then you probably have to give hourly
rates. I can't comment on how those have been affected.

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Posted from the new ixda.org
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14 Aug 2009 - 10:46am
Audrey Crane
2009

I can say that I've had clients say, "In light of the current
economy, we expected the price to be lower." And I've lowered it,
10-20%, when that happens. But it's happened less than half the
time.

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Posted from the new ixda.org
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14 Aug 2009 - 11:08am
jstanford
2003

We haven't really seen a trend in requests for discounts. The real issue
we've seen a few times is that we'll be discussing an opportunity and then
the project will be cancelled and the budget completely cut. So it's not the
case that the budget isn't big enough...it's that it disappears altogether.

Julie
_____________________________________________________
Julie Stanford
Principal, Sliced Bread Design
www.slicedbreaddesign.com | 650-969-0400 x706

http://www.linkedin.com/in/jstanford

-----Original Message-----
From: discuss-bounces at lists.interactiondesigners.com
[mailto:discuss-bounces at lists.interactiondesigners.com] On Behalf Of Audrey
Crane
Sent: Friday, August 14, 2009 8:47 AM
To: discuss at ixda.org
Subject: Re: [IxDA Discuss] Contractor Rates

I can say that I've had clients say, "In light of the current
economy, we expected the price to be lower." And I've lowered it,
10-20%, when that happens. But it's happened less than half the
time.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Posted from the new ixda.org
http://www.ixda.org/discuss?post=44693

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14 Aug 2009 - 11:14am
Robert Hoekman, Jr.
2005

>
> I can say that I've had clients say, "In light of the current
> economy, we expected the price to be lower."

Of course, you should only accept this argument if your client's business
has actually been affected by the current economy. There are plenty of
industries doing just fine, and many others that are *thriving* because* *of
the recession.

-r-

14 Aug 2009 - 12:24pm
Nasir Barday
2006

We should be careful with discounts in our industry, lest people think they
can something for nothing. The best advice I've gotten is that clients
should "feel the pain." If we lower our estimates, it should be because
we've taken something away: one less design iteration, fewer usability
tests, etc. The long term effect I'm worried about is a financial de-valuing
of the worth of our work as designers.

Outside of design consulting field, Professional A/V vendors (a world I'm
close to as a production manager) include "nice to haves":
useful-but-non-essential equipment, specialized people dedicated to tasks
that could be shared among existing hired staff, etc. Vendors start off with
estimates geared toward people who can write a check. But regardless of the
economy, I start trimming out stuff that would be nice if it fit the budget,
but that we can live without on the current go-round. And you can bet when
the event producers I work with can afford it, I'll have those things in
mind and bring them back in.

- Nasir'

14 Aug 2009 - 12:46pm
Audrey Crane
2009

Entirely in agreement with Nasir and Robert,

I do it in the light of, %u201COk, how can we pare this down or
narrow its focus to fit within the budget you have in mind.%u201D
It%u2019s very rare that I would agree to do the same thing, just for
less $$, as if the original cost was just arbitrary.

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Posted from the new ixda.org
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21 Aug 2009 - 1:48pm
Jared M. Spool
2003

On Aug 14, 2009, at 1:24 PM, Nasir Barday wrote:

> We should be careful with discounts in our industry, lest people
> think they
> can something for nothing. The best advice I've gotten is that clients
> should "feel the pain." If we lower our estimates, it should be
> because
> we've taken something away: one less design iteration, fewer usability
> tests, etc. The long term effect I'm worried about is a financial de-
> valuing
> of the worth of our work as designers.

Agreed completely.

I'm surprised nobody has mentioned this video:

http://www.youtube.com/watch?v=R2a8TRSgzZY

Jared

21 Aug 2009 - 1:53pm
Jared M. Spool
2003

Oops. I missed it. Sorry.

Jared

On Aug 21, 2009, at 2:52 PM, Fabian A wrote:

> i believe it has... actually..
>
>
>
> On Fri, Aug 21, 2009 at 2:48 PM, Jared Spool <jspool at uie.com> wrote:
>
> On Aug 14, 2009, at 1:24 PM, Nasir Barday wrote:
>
> We should be careful with discounts in our industry, lest people
> think they
> can something for nothing. The best advice I've gotten is that clients
> should "feel the pain." If we lower our estimates, it should be
> because
> we've taken something away: one less design iteration, fewer usability
> tests, etc. The long term effect I'm worried about is a financial de-
> valuing
> of the worth of our work as designers.
>
> Agreed completely.
>
> I'm surprised nobody has mentioned this video:
>
> http://www.youtube.com/watch?v=R2a8TRSgzZY
>
> Jared
>
> ________________________________________________________________
> Welcome to the Interaction Design Association (IxDA)!
> To post to this list ....... discuss at ixda.org
> Unsubscribe ................ http://www.ixda.org/unsubscribe
> List Guidelines ............ http://www.ixda.org/guidelines
> List Help .................. http://www.ixda.org/help
>

21 Aug 2009 - 4:01pm
Todd Warfel
2003

Funniest, most relevant video ever.

On Aug 21, 2009, at 2:48 PM, Jared Spool wrote:

> http://www.youtube.com/watch?v=R2a8TRSgzZY

Cheers!

Todd Zaki Warfel
Principal Design Researcher
Messagefirst | Designing Information. Beautifully.
----------------------------------
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Email: todd at messagefirst.com
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