>
> Agree with Roman here.  When I did web dev some time ago,
> I started off cheap and even did a couple freebies to
> build a portfolio.  Then, I went out with a higher rate, a
> company name, and something to show why I felt I deserved
> that rate -- ie: past satisfied customers, referrals, and
> samples of my work.  Would never have gotten away with
> the full rate with nothing to show for it.
>
> Timeframes are variable though -- I don't necessarily put
> any minimum timeframes until turning a profit etc.
>
> Cheers,
> -Neil.
>
>
> John Dammeyer wrote:
> >
> > So remove yourself from the personal issues of being a good guy or
> > developing a reputation so you sell yourself short.  The
> only reputation
> > you may get is that you are someone who works cheap while
> others reap
> > the benefits.
>
> > > -----Original Message-----
>
> > > Well I have a client who wants a bid for a project.  The design is
> > > straightforward, it is half-clone &
> half-modernization/update of an
> > > existing product that I'm very familiar with.  Sorry for
> the vagueness
> > > but there is an NDA involved.
> > >
> > > Now he needs a revamp of this thing for use with other stuff in a
> > > "packaged kit" that he will sell.  This is a critical
> piece of the kit
> > > and there is no reasonable currently-existing
> alternative.  He has a
> > > small line of various products (that he doesn't
> manufacture, he's the
> > > retailer) into a niche market for years and knows his
> > > audience well.
>
>
> Hi Jesse, I will take the opposite stance to John above
> and suggest that since your consulting business is a
> start-up venture you should be working as cheap as possible
> (ie NO profit!) until the business has built some type of
> customer base.
>
> I completely disagree with the advice to charge the "full"
> rate with any startup business. When you start a business
> you should be fully prepared to run the business at a LOSS
> for the first 12 months minimum, with very low prices to
> establish a customer base and assure future income. When you
> get to the point when you have TOO MUCH incoming work, then
> gradually increase prices etc until you reach the status
> quo you desire. And for that reason I suggest NOT giving up
> your day job, you will need some income over that first 12
> months while you get the business established.
>
> NEVER start a busines with the expectation of making money,
> at least not straight away. Always ask, "how many hours and
> how many $$ can I sink into this business over the first 12
> months??" and if the answer is less than 20 hours per week
> (while you are still working full time elesewhere) and less
> than $100 USD per week (the reason you are still working
> full time elsewhere) than you are destined to fail.
>
> So my suggestion, if you are really interested in making
> this new busines work, is quote very low (ie UN-profitable)
> and do the job while still working full-time. If you do a
> decent job you will reap rewards later when sales occur.
> Do the same for all jobs in the first 12 months. If you
> make it that far then consider giving up full time
> employment, provided you have saved a decent ($10G?)
> buffer. :o)
> -Roman
>
> --

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