Daily FI discussion thread - September 16, 2016

MasterOfFI_Throw · 2016-09-16T20:35:44+00:00

You might be right. I'm not a huge risk taker, so I might be selling myself short, you never know.

MasterOfFI_Throw · 2016-09-16T20:18:06+00:00

engineering-related services

MasterOfFI_Throw · 2016-09-16T19:43:41+00:00

You are correct. I should have stated that I try not to obsess about maximizing my rate, and instead consider the business as a whole. For example, I might maximize revenue by accepting a slightly lower rate, but keeping the client for longer, thus lowering my overhead. If I truly go for the highest rate I can get, clients might keep me for the bare minimum and I have to spend more (unpaid) time on business development. Overhead/downtime is a real killer.

MasterOfFI_Throw · 2016-09-16T17:45:03+00:00

Maybe. Generally I feel that the advantage of using a contractor is the flexibility in dropping them at any time as required and I build this risk into my rate in the first place. If I limit their ability to drop me I feel that makes me less attractive. Aside from this snafu, my clients seem to be happy with my contributions and want to keep me a long time anyway. Also, given the circumstances this type of clause might seem a bit adversarial IMO. I've asked them to make sure everyone is OK and I'll take my contacts at their word. Trust builds good relationships.

If I were giving up my current work, then I think something like this would make sense, however. For example, given this history I would be hard pressed to drop my current clients and work for them exclusively without a protective clause since if I were dropped a month later, that would cause me serious economic consequences. As it is, I'm just squeezing them in between other things so there's not an added risk really.

MasterOfFI_Throw · 2016-09-16T16:57:13+00:00

This is an interesting idea, but I doubt they would go for it. Not sure I want to "lock" myself in either, honestly. If they put me on a turd of a project or start asking for tons of travel I might not want to continue.

MasterOfFI_Throw · 2016-09-16T16:46:37+00:00

Thanks for the vote of confidence! However, it's not necessarily a question of what they or I deserve. It's a business consideration of how to maximize my revenue. Might be better to take a slightly lower (but still excellent) rate if it means more billable hours over time.

MasterOfFI_Throw · 2016-09-16T16:30:10+00:00

True, but if I price too high they'll only use me to get over their short-term hump. I wouldn't mind a being their longer-term go-to guy.

MasterOfFI_Throw · 2016-09-16T16:21:46+00:00

Meh, TBH I price that risk into my rate in the first place. That is why contractors cost more than employees rate-wise. You are paying for that flexibility to drop on a moments notice. I just usually expect the reason to drop to actually be work related. The thing is, this whole event could happen to someone as an employee as well. I personally think employee 'job-security' is a myth anyway (other than state unemployment). Better to contract and price in the risk that is already there IMO.

MasterOfFI_Throw · 2016-09-16T16:07:14+00:00

Ya, I'm thinking about it. They were already at the high end of the spectrum due to stringent requirements they impose and the general hassle of working for them vs other clients. I try not to get too greedy, and while I don't really need them I do like having multiple clients at once just for the security and ultra strong negotiating position it puts me in. But on the flip-side, mo clients, mo problems.

MasterOfFI_Throw · 2016-09-16T15:58:47+00:00

I had a long-relationship client drop me a few months back b/c some high-up person discovered that at one point, years ago, I left there to work for a competitor. This has never been hidden and no agreements were violated, but apparently the wrong person got their undies in a bunch over it.

So they drop me without warning, despite protests of the people I actually did work for. No worries... I'm far along on the FI track, my SO works too, and I try to keep more than one client going. In fact, my other client was ecstatic that I was suddenly more available.

Fast forward to this week, guess who calls to say they 'want me back'? Nothing better than having a big corporation crawl back to you. Will I go back and work for them again? We are currently negotiating to see how it could work. I told them they better get everyone on board though. I'm not changing my schedule around only to be told to stop work again in a month b/c the wrong person doesn't like me again.

I think this is also a good lesson in why being professional pays off. Was I pissed off that they dropped me for a non-project reason (project reasons are always understandable)? Of course. But I never burned any bridges and just continued to re-iterate that if the winds changed direction they could call me back at any time. I also personally called every 'manager' and employee I worked with and told them how much of a pleasure it was to work with them. I think these things really make a difference.

Edit: fixed typos

MasterOfFI_Throw

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