When you hear this, you say: "I appreciate your position, but I just can't find a business reason to justify lowering my rates."
Ultimately, it comes down to this. Do they view you as a someone special, a person who can really deliver value in a unique way, or do they view you as a commodity?
If they view you as a commodity, they'll try to pull all sorts of stunts like this one. But if there's a special bond, they will respect your rates and try harder to get you onboard.
So perhaps if you are getting asked this question, it's because they're too lazy to learn more about you and haven't really figured out that special thing you bring to the table. There isn't enough of a relationship yet.
If you haven't done your taxes already, do them. It will give you a better picture of where you stand & what you can expect in terms of a refund (if you get one).
Admittedly this advice probably applies more to the self-employed folks as we have to pay quarterly estimated taxes. The worst thing that can happen is to lose a client and then discover that you owe the government a few grand in April.
But if you are getting a refund, it should make you feel more calm about your situation.
Hey hey. I was in the same boat last year. Loved the company but there just weren't enough contracts coming through the door to keep me fully employed.
One thing that really helps to keep me sane during tough times is to catalog every teeny tiny expense I've made over the past year. When you know exactly where your money is going, it will help alleviate lots of stress.
Before I did this, I felt a vague sense of panic. After I did it, I realized that I had already earned two times more than what I typically spend in a year. It gave me a sense of calm, knowing that I had plenty of "runway" before having to dip into my investments.
If you have any egregious expenses (I know I did), now is the time to systematically eliminate them. You might be money poor, but you are time rich now. If you treat your life like a business, now is the time to make some big cuts to ensure your longterm survival.
Just last month, I cut my phone bill in half, figured out how to cut food expenses by a few thousand a year, and reversed a bunch of b.s. charges for services I no longer use.
Sheesh. Have we really gotten to a point where a job can't be a job? I would love to make my own games all day long, but I'm not financially independent yet, so I work for other people.
Sometimes their projects work out. Sometimes they don't. I definitely feel bad when they don't, but I also do the practical thing and keep moving forward with my life.
There comes a point, after years of experience, where you just have to shrug your shoulders and accept that you aren't the one running your clients' show. You can provide feedback. You can be there when they need you. You can do everything in your power to make it a success.
But it's not your thing until you own equity in it. The emotional separation is 100% justified.
I should have been more specific. I was talking about the California law that more or less states that whenever you do work on your own equipment and time off, it's yours and not your employer's.
Can you clarify what you mean by "even if you are over budget" ?
What if you estimated all of the features, built them, and then the client comes back with a bunch of new features and changes that would require a new contract. Do you do them for free?
What about ongoing support? My contracts give the client one week to test any features, and once that week has elapsed without any issues, the contract is considered "complete" and they have to pay the other 50%. Would you be for or against that practice?
I guess I am wondering where the balance lies between protecting yourself and protecting your reputation.
Unfortunately, clients (just like all human beings) are squishy and forgetful. Your reputation can get damaged through no fault of your own. When do you decide to let someone go because their expectations don't match the contract they signed? Is the penalty to your reputation so high that it's never worth the time you would save by doing this?
I am genuinely curious to see how other contractors manage this.
It's funny. I have always suspected employers were looking for this sort of thing. Hence the odd glee in their voice when they hear me talk about spending my hard earned money on discretionary purchases. The more I spend, the longer I stay.
Perhaps the takeaway for all of us is that we all need to be humble and at least pretend we need our jobs, even if we're aggressively saving for an early retirement.
Ultimately, it comes down to this. Do they view you as a someone special, a person who can really deliver value in a unique way, or do they view you as a commodity?
If they view you as a commodity, they'll try to pull all sorts of stunts like this one. But if there's a special bond, they will respect your rates and try harder to get you onboard.
So perhaps if you are getting asked this question, it's because they're too lazy to learn more about you and haven't really figured out that special thing you bring to the table. There isn't enough of a relationship yet.