work boundaries? - asked to reduce contract fees
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Join Date: May 2007
Location: Philadelphia, PA
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work boundaries? - asked to reduce contract fees
I dont know if anyone else has experienced this, but I was hired through my agency company to work for a client. The rates were negotiated before I started and I submitted my work hours yesterday.
I got a call from the client to sort of ask me to reduce my rates (I am actually not supposed to talk to client about rates) along with a sort of sob story (client is not at all hurting, but starting his own business). I know there were a lot of mistruths that he said (telling me I cost a lot more than previous contractor - which I know is not true) and commenting on how I billed a lot of hours. I know he was happy with the quality of my work.
I am having a lot of trouble with this. I feel guilty and feel like I need to justify my hours and rates. I partly want to reduce my rates, although I partly think that is really not fair. I don't know how to sort this out, and I think my feeling responsible for his financial problems is somewhat codependent (I also felt responsible to try to fix his problems with coverage issues too).
Is this a pattern for you all too?
I got a call from the client to sort of ask me to reduce my rates (I am actually not supposed to talk to client about rates) along with a sort of sob story (client is not at all hurting, but starting his own business). I know there were a lot of mistruths that he said (telling me I cost a lot more than previous contractor - which I know is not true) and commenting on how I billed a lot of hours. I know he was happy with the quality of my work.
I am having a lot of trouble with this. I feel guilty and feel like I need to justify my hours and rates. I partly want to reduce my rates, although I partly think that is really not fair. I don't know how to sort this out, and I think my feeling responsible for his financial problems is somewhat codependent (I also felt responsible to try to fix his problems with coverage issues too).
Is this a pattern for you all too?
No. Do not bargain with this man. This is business and he has a contract with your agency that has little to do with you. It is a legal agreement that he signed off on at a certain price.
Some people manipulate like that in business and in life.
Some people manipulate like that in business and in life.
I was asked to reduce my rates--I wasn't the only one--all the independent contractors that work for this very large company were asked to "renegotiate" rates because they were not as competitive anymore with other companies.
I did reduce my rates slightly.. and to be honest, I'm not entirely happy with my decision. I think I succumbed to my old people pleasing junk. So I know exactly what you're saying.
Do you know what the market will bear in your field? Don't drop your rates below that. Truth is, you probably are worth more than you're already charging. If you provide a valuable service to your clients, they'll pay.
I did reduce my rates slightly.. and to be honest, I'm not entirely happy with my decision. I think I succumbed to my old people pleasing junk. So I know exactly what you're saying.
Do you know what the market will bear in your field? Don't drop your rates below that. Truth is, you probably are worth more than you're already charging. If you provide a valuable service to your clients, they'll pay.
No, you did the work at the contracted price and he agreed to that price. If he has some problems with that, tough...Tell him you are sorry for his problem, but you have your problems as well, and you can do nothing about the account or the amount charged.
God bless
God bless
Ohmigosh I literally had to deal with this one last week!!!
I work with a small firm which I subcontract for pretty regularly - and if I get repeat business out of those jobs (am approached by clients or firms who work with those clients) as a courtesy, I have always gone through them again. I get about 70 percent of the fee they charge.
Three months ago they asked me to drop my rate by about 15 percent to work for a great new client who had capped the number of hours they wanted as a trail basis sort of thing. I mulled it over and said yes as it looked like there would be a year of work in it if all went well.
It was a -great- project. I loved working on it - but boy did they get their pound of flesh. They wanted to over-produce to impress these guys and keep the business so for less money per hour I ended up doing a time and a half kind of workload, and they still made a sizeable profit. Sadly, the project ended after two months.
Aaaand they just approached me about more work for a new client - at the reduced rate. I got so, soooo mad. Huge alanonic issues. Coming out my ears ... Multiple calls to sponsor ... They made a killing out of me last year on jobs I didn't really need to give them a cut of. I was being loyal and fair (and alanonic). Self worth and money are tightly linked for me.
I left it a day and wrote a polite email saying that - my rate had always been the same until these last two months and that I was happy to keep bringing business opportunities their way (I am) and loved working with them (I do) but that the last job was a once-only reduced rate because of extenuating circumstances. Told them I would understand if they wanted to find who would work for the rate they were suggesting and respected that they needed to make a profit.
They ersponded in under 10 minutes that of course my usual rate was absolutely fine. Because ... it's business. In this instance they can't afford to lose me. But I realized that I could have lost -thousands- of dollars on this job if I hadn't said no, that's not ok, this is what I charge, this is what I'm worth and this is what I want.
You have a legal document and this rate was agreed upon upfront. I'm really, really quick at what I do - and I produce like nobody's business. I get the heebies submitting invoices and accounting for my hours because my inner alanonic always feels like someone is going to question me or catch me out somehow (which is insane, there's nothing to catch out). But it's an issue and I think my HP was setting me a test last week. It was -outrageous- that they wanted me to drop my rate. I didn't over-react but I told them it wasn't ok with me. And it felt like a turning point in my recovery.
Go get your money! You're worth it!
SL
I work with a small firm which I subcontract for pretty regularly - and if I get repeat business out of those jobs (am approached by clients or firms who work with those clients) as a courtesy, I have always gone through them again. I get about 70 percent of the fee they charge.
Three months ago they asked me to drop my rate by about 15 percent to work for a great new client who had capped the number of hours they wanted as a trail basis sort of thing. I mulled it over and said yes as it looked like there would be a year of work in it if all went well.
It was a -great- project. I loved working on it - but boy did they get their pound of flesh. They wanted to over-produce to impress these guys and keep the business so for less money per hour I ended up doing a time and a half kind of workload, and they still made a sizeable profit. Sadly, the project ended after two months.
Aaaand they just approached me about more work for a new client - at the reduced rate. I got so, soooo mad. Huge alanonic issues. Coming out my ears ... Multiple calls to sponsor ... They made a killing out of me last year on jobs I didn't really need to give them a cut of. I was being loyal and fair (and alanonic). Self worth and money are tightly linked for me.
I left it a day and wrote a polite email saying that - my rate had always been the same until these last two months and that I was happy to keep bringing business opportunities their way (I am) and loved working with them (I do) but that the last job was a once-only reduced rate because of extenuating circumstances. Told them I would understand if they wanted to find who would work for the rate they were suggesting and respected that they needed to make a profit.
They ersponded in under 10 minutes that of course my usual rate was absolutely fine. Because ... it's business. In this instance they can't afford to lose me. But I realized that I could have lost -thousands- of dollars on this job if I hadn't said no, that's not ok, this is what I charge, this is what I'm worth and this is what I want.
You have a legal document and this rate was agreed upon upfront. I'm really, really quick at what I do - and I produce like nobody's business. I get the heebies submitting invoices and accounting for my hours because my inner alanonic always feels like someone is going to question me or catch me out somehow (which is insane, there's nothing to catch out). But it's an issue and I think my HP was setting me a test last week. It was -outrageous- that they wanted me to drop my rate. I didn't over-react but I told them it wasn't ok with me. And it felt like a turning point in my recovery.
Go get your money! You're worth it!
SL
he's a business, people operate in different ways, and one way of maximising profits is to try and negotiate down the staffing costs, you don't get if you don't ask, so he asked, and gave you a sob story.
You are a business and one of the ways you try and maximise profits is to be well paid for what you do, so you refuse the request.
everyone moves on, end of story.
I often get agitated when someone makes a request because I have a problem saying no, I feel under intolerable pressure to agree, even if I really really don't want to do it, so I get very annoyed that people ask for something. But that is my issue, not theirs. A request isn't a demand.
And this isn't about how well you work, or whether you did a good job or what your work is worth or what you are worth, it is about cost. For both of you. He has every right to ask, you have every right to laugh and say "hell no".
If he was laying it on thick you might want to evaluate if you'd want to work for him again, but life is easier if you expect that sometimes this will happen, in all aspects.
You are a business and one of the ways you try and maximise profits is to be well paid for what you do, so you refuse the request.
everyone moves on, end of story.
I often get agitated when someone makes a request because I have a problem saying no, I feel under intolerable pressure to agree, even if I really really don't want to do it, so I get very annoyed that people ask for something. But that is my issue, not theirs. A request isn't a demand.
And this isn't about how well you work, or whether you did a good job or what your work is worth or what you are worth, it is about cost. For both of you. He has every right to ask, you have every right to laugh and say "hell no".
If he was laying it on thick you might want to evaluate if you'd want to work for him again, but life is easier if you expect that sometimes this will happen, in all aspects.
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