How do you negotiate your rate or price?

[Kevin Lee]

If you're an entrepreneur who has hired a family member or friend to work for you OR a freelancer working for a friend/family...

How do you negotiate the pay rate or price?

[GT Bulmer]

Hi, Kevin:

If I hired a family member or friend to do work that they receive professional pay for from their regular clients, I would insist on paying them the going rate. Unless we were bartering to exchange services of some sort. I don't think it is fair to expect a family member or friend to give you a cut rate.

If it was just some casual work they were going to do for me that they might not normally do or get paid to do, then I might negotiate a cheaper rate since it is not their livlihood, just a chance to earn a few extra dollars.

If a friend or family member wanted to hire me to do work I normally receive professional pay for, it would depend on the nature of the work and the timeline or deadline. In some cases I might offer a rate lower than my normal rate. In some cases I might offer a substantially lower rate, if it was something I could just work on whenever I had some spare time.

GT

[Kevin Lee]

Hi, Kevin:

If I hired a family member or friend to do work that they receive professional pay for from their regular clients, I would insist on paying them the going rate. Unless we were bartering to exchange services of some sort. I don't think it is fair to expect a family member or friend to give you a cut rate.

If it was just some casual work they were going to do for me that they might not normally do or get paid to do, then I might negotiate a cheaper rate since it is not their livlihood, just a chance to earn a few extra dollars.

If a friend or family member wanted to hire me to do work I normally receive professional pay for, it would depend on the nature of the work and the timeline or deadline. In some cases I might offer a rate lower than my normal rate. In some cases I might offer a substantially lower rate, if it was something I could just work on whenever I had some spare time.

GT

Hi GT,

But do you think working for a friend/family member somewhat blurs the lines of "friendship" or "family"?

For instance, if the friend/family you were working for did something nice for you, how could you tell if it was genuine or if there was a "business" related motive behind the gesture?

[topeyinka]

If you're a freelance entrepreneur offering your services for hire, what do you say when the client/employer asks what your price is?

Let's say, you're ambitious and quote a slightly higher than average rate because you believe your time and talents are worth that amount and then the client never returns your call.

What would you do, especially if you needed the money?
a) Stay true to your rate.
b) Lower your rate the next time around so it's more competitive.
c) Call the client back to let him/her know that you'd be willing to do it for less in the beginning if there's an opportunity for more compensation later.

Thanks

Kevin, this is a good thread you have started here.
What I believe as a freelancer to charge as rate or price is determined by the nature of the project. One has to analyse the project and be friendly with the buyer of one's service. You can charge a big rate if one applies good power of negotiation. For instance, if I want to hire a freelancer, what quality of negotiation he/she is able to do, most of the times determine if i would engage his or her services.
So to me, you cannot charge low for a project that needs high price because you are a freelancer. What makes you get a good price is the power of negotiation.

[GT Bulmer]

Hi GT,

But do you think working for a friend/family member somewhat blurs the lines of "friendship" or "family"?

For instance, if the friend/family you were working for did something nice for you, how could you tell if it was genuine or if there was a "business" related motive behind the gesture?

Hi, Kevin:

I do believe it is a risk hiring or being hired by family or friends. You often hear how a situation like that has developed into a rift between the parties.

Regarding motives, I don't know if you could really tell up front, or not until the nature of the motive surfaced. It would be great if everybody was upfront and honest, but I know that even with friends and family, we sometimes feel inclined to put up a "game face" when negotiating. Human nature, I guess.

GT