I talk money with my developer friends
I talk money with my developer friends.
Here’s why.
Years ago I was managing a dev team full-time and contracting on the side. My friend named Lee walked into my office and asked “What’s your hourly contracting rate?”
His question caught me off-guard. I was raised to not talk about money. My dad said “it’s taboo”. But since I knew Lee well, I reluctantly told him:
“I charge $50/hour”.
He cringed and immediately said “you’re not charging enough. I charge $150/hour.”
That blew my mind. We were similar ages and had similar levels of experience, yet he was charging 3x my rate!
This conversation changed my life. In my next sales call, I quoted $150/hour and held my breath.
The response? “Sure, that works”.
Wow. It was that easy all along?! I was floored.
Over the years I quoted higher rates many times when my plate was full. Nearly every client simply said “Sure, that works”.
These days I have many friends who own their own business. We talk money so we know our pricing is right.
Remember: Bosses are often less price sensitive than individuals because they’re spending someone else’s money. And choosing the more expensive contractor is often considered “safer” because the higher price infers they’re better.
Price is a story. My old price said “I’m economical”.
Lee helped me tell a new story. “I’m expensive, and I’m worth it.”