Originally posted by AJ Jefferies
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Perhaps the confusion is this: when I say a job that takes less time should cost less, I am not saying your *rate* should be lower, only that you should charge for the amount of time you put in. This is relative to your *own* time and rate to do the work, not to someone else. Someone else who is less skilled will take more time, but it is very unlikely they are charging the same hourly/daily rate. They *should* be cheaper than you - but by the hour is how you would measure it (or by the day- whatever unit of time you like to bill by) not by the 'job'.
To simplify: you set your rate to reflect your perceived and actual value (your skills, the overhead of software, hardware, staff, training time, rent etc, etc.) Then you charge by the hour to work. If a job last year took me 2 days and this year takes me one day then I would charge 1/2 the money this year (assuming it's all labour for the sake of the point) - but by the hour I'm still making the same (also assuming my rate hasn't changed for other reasons).
I find this can be hard to swallow at times, because it *feels* like I'm working for less, but that's just instinctive thinking about the value of a job without thinking about how that value got there in the first place. When I really think about the cost of the job it sits just fine.
Because so many factors can change from job to job, and it's so hard to track variables I find it simplest just to go by the hours in and make sure I'm comfortable with my hourly rate. This way I don't have to worry about what a job *might* be worth to someone else or at some other time in any kind of abstract way. It's all very concrete and easy to measure.
Make better sense now, or am I still off base?
/b
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