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  #1  
Old 09-22-2010, 12:12 PM
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Quote:
Originally Posted by Kuan View Post
Why do people expect to get paid $50/hr for their time but never seem willing to pay me $50/hr for mine?

dont worry, after they hire the $25/hr guy to do it for them they will pay you $85/hr to fix it later

when I was contracting I would handle it two ways, flat rate them or figure out what the rate they wanted to pay and set hours of effort accordingly.
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  #2  
Old 09-22-2010, 12:14 PM
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Originally Posted by lutzTD View Post
dont worry, after they hire the $25/hr guy to do it for them they will pay you $85/hr to fix it later
Ah, but Sir. At that time, you are FUBAR and you need my help. I'm not sure $85 will cut it then since I have you behind the 8 ball and you want me to unravel the other guy's mess. I think $85 plus a $15 penalty fee might be ok.
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  #3  
Old 09-22-2010, 02:10 PM
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Mmm.... Diesel.
 
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Location: N. NJ
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PITA fee 15-30%, depending on history and expectations.

Unfortunately, a co-worker once let a spreadsheet go out to the customer with the line item and it was for the full 30%.

Co-worker is no longer with the company.

Customer paid it though. On the quick, it was called Parts In Transit Actual (Cost, but it wouldn't fit on the line in the "system") Fee..... Whew!
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  #4  
Old 09-22-2010, 12:45 PM
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Gotta another one...
 
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Quote:
Originally Posted by lutzTD View Post
dont worry, after they hire the $25/hr guy to do it for them they will pay you $85/hr to fix it later

when I was contracting I would handle it two ways, flat rate them or figure out what the rate they wanted to pay and set hours of effort accordingly.
I was thinking the same. Some of my clients try to get cheaper prices out of me when I give a quote. I tell them they can either get it done cheap, or get it done right, then leave. Most of the time, they call back the next day.
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  #5  
Old 09-22-2010, 01:02 PM
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Originally Posted by MattBelliveau View Post
I was thinking the same. Some of my clients try to get cheaper prices out of me when I give a quote. I tell them they can either get it done cheap, or get it done right, then leave. Most of the time, they call back the next day.
Do you charge more for undoing what the last idiot did? I usually warn them that this is the price for doing the job and higher rates apply for fixing somebody's mess.
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  #6  
Old 09-22-2010, 06:55 PM
1990 500SL
 
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Location: Hawthorn Woods, IL. USA
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Quote:
Originally Posted by lutzTD View Post
dont worry, after they hire the $25/hr guy to do it for them they will pay you $85/hr to fix it later

when I was contracting I would handle it two ways, flat rate them or figure out what the rate they wanted to pay and set hours of effort accordingly.
A funny story from years ago.
I did a lot of SQL Server DBA work, usually the very special heavy lifting stuff the local PC guys couldn't handle.

Got a call about a company their Line of Business app was down.
First I knew from chatter, the owner was slooooow pay, many times waiting for the collection agency before he'd cough up the dough.

But I went in quoted 150/hour, 8 hour minimum 16 hour max problem solved or no pay, and 8 hour check on ARRIVAL.

Didn't hear back, ok. 4 days later I get a call from their regular PC support consultant, they brought in another guy (I knew him) for about half what I quoted. He not only didn't solve it, made it worse, potentially lost all their data.

So I call the owner, he was frantic. I told him 350, with 8 hour gaurantee pay up front, no maximum hours, final payment within 7 days.
I told I knew he was slow pay, and don't normally take slow pay customers, I also told him I was booked up NOW, so I was going to have to rearrange several appointments.

He ranted and raved and said OK.

I walked in, was handed a certified check for the 8 hours gaurantted.

Well 8 hours later I had things stabilized, the data was recovered (almost all), they were able to begin using the app and continue on. I put in another 12 or so hours cleaning up the mess and setting things up so it shouldn't happen again.

When I gave him the final documentation on what I did, he asked how many hours walked out and came back 5 minutes later with the check. I hadn't even invoiced him yet.

We enjoyed a good relationship from then on, at my regular rates, including a fair amount of general computer and application support.
He paid very promptly from that point on, including the other techs he had in from time to time.
He also referred a bit of business my way, I actually gave him discounts sometimes as a thankyou.

He learned sometimes cheap is cheap.

He did tell me he figures he lost 5 to 10k per hour the plant was down because the app wasn't running, it managed all the scheduling of production through the plant.

We still go out to dinner from time to time, he's semo retired now.
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  #7  
Old 09-23-2010, 08:08 AM
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There are always going to be people out there willing to whore themselves out by low-bidding everything. We routinely run into bid prices that are 5-10% over cost or have clients who balk at our consultation fees, go to one of our low priced competitors only to come crawling back later looking for help. With low-bidders, you get exactly what you pay for.
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  #8  
Old 09-23-2010, 08:23 AM
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Quote:
Originally Posted by SwampYankee View Post
There are always going to be people out there willing to whore themselves out by low-bidding everything. We routinely run into bid prices that are 5-10% over cost or have clients who balk at our consultation fees, go to one of our low priced competitors only to come crawling back later looking for help. With low-bidders, you get exactly what you pay for.

I had that issue as well when I had my trucking company. People wanted me to go into NYC out of Harrisburg for $300. On more than one occasion I told the broker to call me when he was serious. Which normally turned into well so and so will go for that why wont you?

Well so and so is based in Maine and that will get him paid to his home that is why.

By the time thay called me back the 3rd time it was always close to $750... It got to the point it was no longer worth it to deal with people like that. I was at the point where it turned into look we both know you are going to pay it so just cut to the chase and stop playing games.

I hate being an employee again but there are advantages.
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