Written on May 7, 2013
The other day I was asked for my day rate, I gave it along with some other information. The response I received back was simply “That’s out of our budget range”. So what is wrong in this situation?
Person A has a low day-rate. This is because they are quite new to the industry and because of this, they work a little slower and generally take longer to complete a project.
Person B has a higher day-rate. This is because they are very experienced and because of this they tend to find solutions more quickly and often work in a more efficient manner, which all results in completing projects more quickly. They have a higher day rate because they offer more value.
If you hire Person A then the overall project cost will more than likely be the same as hiring Person B – by the time Person A has spent a few days searching for a solution to your problem you may as well have paid Person B for one day – but by hiring Person B you are tapping into more experience which should give a better end-result and you will get your project completed in a shorter timescale, often with better communication and more professionalism due to Person B being more experienced.
So next time you ask me for my day rate, why not think about asking me for a project quote instead. You might be surprised.
Working on a day-rate only basis is a way of looking for the cheapest person to do the job, please don’t make that mistake.