[Sigia-l] Freelance IA consulting: Discovering the cost of do ing business

[Avi Rappoport]

At 2:39 PM -0400 6/10/02, Ziya Oz wrote:
>The whole point of this exercise is to establish your rate for the 
>*next* project.

No one has ever asked me what I charged on my last project.  My 
clients, and I think most of yours, do not get together and check on 
pricing -- they have no clue what I charge other people.

They ask what my rate is and I tell them, based on my intuitive 
heuristic algorithm concerning what I want and what I think they can 
afford.  This is often an amazingly large number, though I give a 
substantial discount to non-profits because otherwise they not be 
able to afford me.  Also people from places with uncomfortable 
exchange rates, like Australia.

All that aside, if you are confident in yourself and can find a nice 
niche or area of expertise, the psychology of setting rates turns out 
to be more complex than it first appears.  "Expensive = good" in the 
eyes of many clients.  I certainly don't mind, as long as I can 
deliver something I'm proud of.  But if I didn't charge a lot, they 
wouldn't take me seriously.  Weird but true.

Avi

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