[consulting] Gouging Stupid Clients

[Doug Johnson]

You have to live with yourself AND the long term effects of your actions.
It is not your job to make as little as possible, BUT you have to decide 
what is the right amount to charge for your services.
If your hourly rate is adequate (meaning it also includes the time you 
need for sales, proposals, vacation, etc) then charging for what you 
actually put into a job or task is correct.  If, however, your rate is 
only good if you are constantly, fully employed, then you have to make 
up for that someplace...either in a higher rate or padded hours.
I had a sales policy when I was consulting full time that basically said 
I charged X per hour for the time that I did work for my clients and 1/2 
for travel time.  And I let them know that if I was talking to them, 
they should assume I was billing.  I didn't always, but it was in the 
sales policy.
And I made sure that my rate covered the extra time that I wasn't 
working and could still make a living, and in my case, pay my 
programmers and office staff and all the extras that come with running a 
business that are not illustrated by the hours you spend on a specific 
project.
You need to think it through and then come up with what makes sense for you.
But if you intentionally "gouge" your client, it will cause two bad effects.
First, eventually the client will find someone who won't gouge them and 
move on.
Secondly, the fact that you see it as gouging will, ultimately, affect 
your relationship with the client and yourself.
I think you should get paid a mix of what you are worth and what the 
market will bear.  You can't overcharge the market, because it will kick 
back at you, eventually.  You can't overcharge for what you are truly 
worth...same result.
If, however, you provide value to your client that is as good or better 
than they can get elsewhere at the same price and you deal with them 
honestly and fairly, you will have a good and long career in a sometimes 
fun and always fascinating field.
"Be careful what you pretend to be because you are what you pretend to 
be." - Kurt Vonnegut
Doug Johnson
Solution Visionary


On 2/23/2012 4:26 PM, Fred Jones wrote:
> OK the subject is exaggerated--that was just to get your attention. :)
>
>
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