Archive for Negotiation
Ask and You Shall Receive
Posted by: | CommentsI’ve talked about asking for what you want in the past, such as in my e-book but I’ve even outdone myself lately! I thought I would share it with you all. I’m coming up to the end of my latest contract (after extending a couple times) and decided I want to move on to more interesting projects. The client also posted a position that would replace part of what I do. I’ve been working for for about a year without a break on this project and am in need of some vacation time. But since I realized they might have some issues with having someone else take over my job, I offered the following: I can be available for phone calls with a 1-2 hour response time for a minimum of 20 hours per month (any less and they will still pay for the 20 hours). And the rate (which is already pretty high as you know) was more than 50% higher since I will be ‘on call’. This will be for the summer months at this point. One key point is that I was offering to help them out without any attachment to the result. I was fine either way, the decision was totally up to them. Since their replacement was fairly junior they thought it would be beneficial to them. This arrangement is another consequence of finding a niche market, which I also talk about often. If your skills can be easily found elsewhere, it is less likely they will be as willing to accept some of these proposals.
Even though this will cut into my vacation time, it’s a pretty sweet deal since I can go for a 2 month summer vacation and be able to make some extra cash without having to use my computer, go to an office or be responsible for the day to day running of the environments.
Lately I’ve been getting used to working from home via VPN and am pretty much going to focus on only being available for remote development. The beauty of this is that I can work anywhere where there is an internet connection. Can anyone say “Hawaii”.
Can You Walk Away?
Posted by: | CommentsIt’s always best to negotiate from a position of power. You must ask yourself ‘Can I walk away from this deal?’. I find many people get locked onto an opportunity and so it’s tough to let go. I was recently discussing a contract opportunity for myself and I heard such things as ‘That rate is higher than the client is comfortable with’, ‘Other candidates have lowered their rate because of the economy’, and ‘This is our standard rate’ to name a few. Many people in my position would have went along with those comments and lowered their rate. If you know me by now, you know I didn’t.
When someone tells me about an opportunity they have and what they want from the client, I usually ask ‘What if they say no?’. Often times I get a blank stare. In many cases, they will eventually adjust their rates downwards to accommodate the client’s ‘policy’. There’s nothing wrong with making adjustments but you should never lower your rate or make other concessions without removing something from your service, or getting something else in return from the client.
Negotiations can tend to get personal. The egos can get involved. Here’s my take: You have your standards and the client has theirs. If you can’t come to an agreement that’s okay too. They have their policy and I have mine. The slippery slope is if you lower your standards for one client you will tend to do this in the future as well. If you stick to your guns, lose an opportunity or two but still end up in great shape, it will encourage you and validate your courage.
