Client Question

[geod]

Have a question about what to charge a client. Client is a Advertising and Design business in Albuquerque, NM where I live. The owner has begun developing an inhouse database and wants some help with the implementation. Client has already built a lot of the DB and has a clear idea of what he wants to do, so I will mostly be building his ideas and adding some of my own ideas where appropiate. All of my prior work with FMPro has been with businesses where I was an employee doing other jobs as well as building FMPro apps. Judging on what I view here in the forum I would place my own ranking somewhere between intermediate to advanced. So my question would be what to charge this client on an hourly basis, keeping in mine the wage scale here in Albuquerque is lower than in other metro areas. Any input would be greatly appreciated.

GD

[Chuck]

I see two ways to go about this. The first is to check what others charge for similar work. To give you an example, I charge primary clients (clients where I am their primary vendor) $120/hr. But I charge a different price for sub-contracting, which actually makes up the bulk of my work. In this kind of situation, the client isn't mine, but another developers, either another individual or FileMaker development company. I charge the primary contractor $60/hr and they usually charge the client between $90 and $120 per hour.

But I came to these prices through a couple of years of experience as to what I was able to bill and have a balance of work available and time for projects. When I first began a couple of years ago, I charged $65/hr for primary clients and $40/hr for sub-contracting, but I found myself in greater demand than I was able to supply. So I raised my prices until they are what I have today.

But none of this really tells you what to charge, does it. My advise would be to check in your area to see what other database developers charge. Also, evaluate what your needs are for making a living, including such expenses as your equipment, software, supplies, new business expenses, etc., and then adding to this estimates for taxes and your personal living expenses. I would do this on an annual basis. For instance, let's say that you would be comfortable earning $60,000/year for your personal income. Taxes on this may be $15,000, business expenses might be $10,000/year, giving you a total of $85,000/year. If you're able to work 1,500 chargable hours per year, this gives a rate of about $57/hr. In other words, if you work 1,500 billable hours per year, and you are able to charge $57/hr, you will have $60,000 in after tax income per year.

Obviously this is a simplified example, and you may be able to charge much more given the market in your area, but it'll take research. If you just want a number, then pick the lower end of the scale, see how much business you're able to generate, and move from there.

Chuck

[Ocean West]

Moved to new forum.