The Ruby Freelancers Show 006 – Setting Your Rate

by woody2shoes on March 5, 2012


  • Charles Max Wood (   )
  • David Brady (   )
  • Eric Davis (  )
  • Jeff Schoolcraft (  )
  • JT Zemp ( )


  • Doubling your rate and doubling your business
  • Exchange of value
  • Communication counts
  • Rate setting is about perception
  • Experiment with your rate
  • The “gasp technique”
  • Sales confidence
  • You may be able to charge more if you can get it done quickly.
  • Freelance Switch Rate Calculator
  • Take your yearly salary and divide by $1,000
  • Rate based on your cost
  • The cost of employing a person is something you have to cover
  • “Do the hustle” – Obie Fernandez
  • What is the minimum that Rails developers should be charging? $100/hour? $150/hour?
  • Talk to people who do what you do and see if they tell you to raise your rate
  • If they want you to subcontract to you, you might be too low
  • Look for subcontracting opportunities if you’re willing to lower your rate and pass off the marketing, etc.
  • Do you lower the rate or negotiate if the client wants lower?
  • Correlation between your rate and your value
  • Don’t give discounts, negotiate your rate
  • If you speak first, ask for $20/hour more than your normal rate so you can negotiate to what you want
  • Put your price out there to filter requests
  • “We fix $5 haircuts.”
  • Rescue work
  • Fixed bids
  • Estimate, add padding, multiply by rate, and round up
  • Bid on putting in a bid
  • PERT methodology


  • (Eric)
  • (Jeff)
  •  (Dave)
  •  (Dave)
  • Never negotiate with yourself (Dave)
  • (JT)
  • (JT)
  • (Chuck)
  • Talking to Experienced People (Chuck)

{ 2 comments… read them below or add one }

March 11, 2012 at 1:47 pm

Great show! Another way to work with clients that might think your rate is too high (or that have a low budget) is to adjust the scope of the project. That allows you to start the working relationship and often times, by the end of the project, they will realize that you are “worth every penny”.


August 30, 2012 at 10:49 am


That’s exactly what I do. Reduce the scope and the value they will get from the project so their investment is less money. Depending on how you reduce the scope, you can sometimes do another round later once there is trust and you’ve demonstrated your value.


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