How to Negotiate High Hourly Rates

As I talk about in my e-book, it’s good to be prepared when you start to negotiate your rate at the beginning of a new contract. You should have a low, medium and high rate prepared. Low is what the lowest absolute rate you will accept, medium is what you’d be happy with, and high is what you’d be really happy with.

But before you negotiate there are many other things to consider which affect your ability to get the rate you want. Some of these you might not even be aware of but they come across in your discussions.

Hopefully you have researched the rates for your skill and have a general idea of what you will get. A rough ballpark could be $75-95 per hour considering that the larger consulting firms might charge upwards of $150 per hour.

Other issues to consider are:

• Are you comfortable asking for these types of rates?
• Can you walk away from the negotations without getting the contract?
• How much debt do you have?
• Have you practiced this out loud with a friend?
• Do you believe you can handle the technical requirements of the project?
• Do you really want to get this contract?

If you’re not comfortable and confident with these rates it will definitely come across in the negotation. If you are in desperate need of a contract because of debt or you haven’t worked for a while, it will come across. If you don’t think you can do the job, it will come across.

The last issue is interesting. You have to show that you would like to help the client, but you can’t come across as desperate. You can take or leave the contract, but you show genuine interest in helping them out. Either way is fine.