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I might be confused, but doesn't the fact that you're turning down work mean that you haven't yet plateaued rate wise? I mean, if you're turning down work doesn

I might be confused, but doesn't the fact that you're turning down work mean that you haven't yet plateaued rate wise? I mean, if you're turning down work doesn't that mean that you can increase your rate and still be doing the same amount of work?

tobyjsullivan 13y ago
It would be intuitive to imagine that the rates companies are willing to pay vs demand would form some continuous curve. i.e., as you increase your rate, the demand would steadily decrease allowing you to find the optimal balance point. However, my experience, though limited, has offered a very different picture. The vast majority of companies have a number in mind that they consider to be the standard rate for development work in their city. It looks like in London that's about £50/hour. Once you attempt to exceed this rate, regardless of qualification, the number of companies willing to hire you drops significantly to the point where you would have trouble finding steady work. There are exceptions to this rule on both sides but most freelance developers will face this ceiling until they master the skills to overcome it (which, as you can probably guess, are sales-related, not technical).
- burnerphone44 13y ago
  Agree - conversions dropped by approx 50% when I increased my rate from £50ph up to £55-60ph. It seems to be a super-sticky price point.
  - drewblaisdell 13y ago
    This is because you are dealing with clients for whom £50 is the upper bound rate of the developers they deal with. If you want to increase your rates and have a skillset for it, try doubling your rate and going after clients that are used to paying double your rate.
    - singingfish 13y ago
      I have the problem in reverse. I get well paid for my part time remote gig when it's on (say around £80ph - I'm not london based). Local gigs want to pay around £45-50, and given my current situation I'm reluctant to commit to full time at that rate. So I quote higher and they lose interest.
      - stevewillows 13y ago
        If only you two could join forces during his transition away, eh..
logicallee 13y ago
you're gonna love learning this: http://en.wikipedia.org/wiki/Price_elasticity_of_demand http://en.wikipedia.org/wiki/Price_elasticity_of_demand

tobyjsullivan 13y ago

It would be intuitive to imagine that the rates companies are willing to pay vs demand would form some continuous curve. i.e., as you increase your rate, the demand would steadily decrease allowing you to find the optimal balance point. However, my experience, though limited, has offered a very different picture. The vast majority of companies have a number in mind that they consider to be the standard rate for development work in their city. It looks like in London that's about £50/hour. Once you attempt to exceed this rate, regardless of qualification, the number of companies willing to hire you drops significantly to the point where you would have trouble finding steady work. There are exceptions to this rule on both sides but most freelance developers will face this ceiling until they master the skills to overcome it (which, as you can probably guess, are sales-related, not technical).

burnerphone44 13y ago
Agree - conversions dropped by approx 50% when I increased my rate from £50ph up to £55-60ph. It seems to be a super-sticky price point.
- drewblaisdell 13y ago
  This is because you are dealing with clients for whom £50 is the upper bound rate of the developers they deal with. If you want to increase your rates and have a skillset for it, try doubling your rate and going after clients that are used to paying double your rate.
  - singingfish 13y ago
    I have the problem in reverse. I get well paid for my part time remote gig when it's on (say around £80ph - I'm not london based). Local gigs want to pay around £45-50, and given my current situation I'm reluctant to commit to full time at that rate. So I quote higher and they lose interest.
    - stevewillows 13y ago
      If only you two could join forces during his transition away, eh..

logicallee 13y ago

you're gonna love learning this: http://en.wikipedia.org/wiki/Price_elasticity_of_demand http://en.wikipedia.org/wiki/Price_elasticity_of_demand