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Ask HN: Contractors, what is your hourly rate?

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Re: Ask HN: Contractors, what is your hourly rate?

#231

Post by sebasv_ »

Escapado wrote: post #143
dijit wrote: post #125

Earlier quoted context omitted.

it's probably true that you're earning more; but you should know that the amount seen on the balance sheet isn't the whole truth. In fact, I'm quite sure you know, but for those reading: 80-100eur/h on a contract is roughly equivalent to 50-60eur/h salaried; due to social contributions, paid vacation (1.12th of your salary), pension contributions and other benefits relating to insurance in the even the business goes…

You are not wrong that they are not the same but the difference is smaller than you think. Let's run the numbers: Last year I worked for 210 days and I made 143.480€ (=85€/h) after deducting the 19% VAT. I paid 10.740€ for health insurance (which is capped) and 15.720€ for the pension fund (which I don't have to do but choose to do and this is the same rate an employer/employee would pay given that income) leaving me…

I'm missing one very important cost on the contractor side: unemployment insurance. I don't know about German law but in the Netherlands all the numbers are comparable, except that your employer is required to insure you against loss of income. This insurance runs up to 1/3 of your insured income, which would put your taxable income at about 87.000. Of course you don't _have_ to take this insurance but if you want an honest comparison it should be included on both sides.

Re: Ask HN: Contractors, what is your hourly rate?

#234

Post by NO_CHANGE »

halkony wrote: post #42
TbobbyZ wrote: post #26

Earlier quoted context omitted.

How do I get into your work?

Assuming you're looking for contract work in general and not specifically refrigerators, he sets a good example for how specialization gets you consistent work. Basically, find a niche industry (refrigerators, greenhouses, toy cars, whatever), find an audience, think about what they could use, and acquire the skills to give it to them. I used to be an actuary before I did software, I plan on going back to my old comp…

I looked up the book and the search engine suggested the search "John Sonmez scam". I guess he's not in good standing in the industry or the Web in general.

Re: Ask HN: Contractors, what is your hourly rate?

#235

Post by wishinghand »

pdonis wrote: post #144
rolisz wrote: post #103

Earlier quoted context omitted.

Paid vacation still counts towards your "work hours", because your employer pays for them.

But if you're a contractor, you don't have an employer, so you have to divide the total amount you want to make in a year by the actual hours you expect to work, which won't include time off, since your clients won't be paying you for time off.

I think that's the idea by diving by 1000. The math is assuming that you won't work half the time.

Re: Ask HN: Contractors, what is your hourly rate?

#236

Post by NoZZz »

Noneofya wrote: post #217
dinosaurdynasty wrote: post #124

Earlier quoted context omitted.

Well at least there aren't 20 types of toilets where each one takes 3 years to learn how to unlock...

If you need 3 years to unlock the toilet with any framework, that says more about you than your profession.

We should also have the conversation as to why that plumber can get away with cash xD

Re: Ask HN: Contractors, what is your hourly rate?

#237

Post by Snowtire »

I charge 400/h for consulting, specializing in high scale distributed systems. When I'm charging that much I'm not doing the work, companies bring me on for 2 or 3 hours a week to set directions and tech goals as well as solve the problems they've been trying too but can't

Re: Ask HN: Contractors, what is your hourly rate?

#238

Post by steve_slammin »

edent wrote: post #68

I have three rates. You are a charity, or other worthy cause, or someone I really want to work with - 50% - 100% discount. You are a normal client - 100%. You are either an arsehole or have asked for something very last minute - 150%-200% depending on the mood I'm in. The last one, colloquially known as the fuck-off rate, is probably the best bit of contracting advice I ever got from a colleague. He hated the gig we…

He helps his clients solve problems...unless they aren't using Salesforce. Then they're on their own.

Re: Ask HN: Contractors, what is your hourly rate?

#239

Post by Mandatum »

VoodooJuJu wrote: post #215
brk wrote: post #134

Earlier quoted context omitted.

I do consulting, but not as a developer, more business growth/strategy. I tell all my clients, you are not paying for my time spent on a specific task, you are paying for access to my 25+ years of experience, learnings, and contacts. An email that just says "OK" might be the net result of a set of experiences and knowledge that would take the client 2 weeks and $2,000 to obtain on their own. $75 would therefore be a…

I too delude myself into believing an "OK" from me is worth $75.

You obviously haven't been the decision maker for anything remotely important.
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