Rates and Billing

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Old 12-22-2009
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Default Possible Client
Hello everyone,

I visit here and read when I can. Everyone is a huge help! I have so much to learn.

I just have a few questions in preparation for a possible job that I may get.

1. If there is a project that you think you can do, but never did it before, do you bill for the time spent researching and learning? Or, just the time it takes to do the job?

2. I'm working with a possible client through Computer-Gigs in Craigslist.
In the first email, they just told me what all they were looking for. Compensation was never mentioned. I know I can do the project. I am about to email them and would you recommend telling them right off the bat what it would cost them for me to do the work, or ask them if they had a budget figured out for their project to see what they were planning on paying? I estimate it will take me about three hours total, in addition to the time I spent researching.

Thanks so much for any help!
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Old 12-22-2009
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Default Re: Possible Client
Hello,

Compensation needs to be determined up front. You should tell the client what it is you charge for your services. If this is a project, then you can say it will take 3 hours and at what cost. You are a business owner and not an employee. The client doesn't determine what you should charge. Your services have value and your fees need to reflect that value. Make sure you put that in a signed contract so that there is no discrepancy later. Very important.

If you don't know how to do the work but think you can, you need to determine that up front before you say you can do the job. The client should only pay for the work completed not for your time to train yourself on doing the job.

I caution you when taking on a task that you have never done before. The client may think you will have a project done in xx amount of time when in fact it may take you xxx amount of time because you need to train and research on the task. You would not charge the client for your time to do the research to determine IF you can do the job.

It can be risky taking on a project you may not have done before. Think carefully about the pros and the cons.

Good luck and let us know how you do!
Janine
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Old 12-22-2009
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Join Date: Mar 2009
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Default Re: Possible Client
Thanks so much for your fast response, Janine.

I have only exchanged one email with them so far, in which I asked them for details about the project. I wanted to be sure I could do it first before I said I could, or before I told them my fees. I should have been more clear when I said "I THINK" I can do the job on my post. Now, "I know" I can do it because I actually did all the steps yesterday using made up data, as a trial run. I just won't charge for the time I spent yesterday. It was a learning experience.

I will let all of you know if I end up doing the project.

Thanks so much!
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Old 12-22-2009
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Default Re: Possible Client
Now the good thing is that now that you can do the job this is one more service you can add to your list of services. It is always nice when a task comes along that (for lack of a better term), 'forces' one to learn when maybe you might not have done it otherwise on your own.

And now that you know you can do the job, you have more confidence in presenting your fees and creating value for the client.

Best wishes!

Janine
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Old 12-22-2009
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Default Re: Possible Client
I agree with Janine about the disclosure of fees up front. You could have asked for the project details and then stated that my fee is xx.xx per hour. Let me put together a proposal that will outline total cost, time involved and details of the project. In the meantime, do you have a budget in mind for your project.

This will give you an idea of what they are expecting. It will also allow for you to do some negotiating on the fee if need be. However, I would not allow a low ball fee just to get the job. Negotiating smaller terms in lieu of potential future work is one thing, being taken advantage of is another.

Also note, that if negotiating a lower fee to get this client then let them know that you can give them a one time discount since they are new or you are offering a special. This was you are not completely compromising future fees.
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