You may be able to work it backwards. I have no idea about your area but if
for example you can be billed out to a client for $65 an hour he should be
able to pay you say $50 and have over 20% profit. I would guess though with
your location and haveing a degree and experince you should be billed at
closer to $85-$95 per hour so you should be able to charge close to $70 and
he still turns a nice profit.
Now, given the software purchase etc. you may want to vary that some with
this particular employer. Around here if we can get a half decent contract
drafter in the mid $40's per hour we can make money off them all day long.
You also need to consider those who offer you repeat work vs one here one
there. Your main problem is going to be steady work. The contract drafters
around here are either swimming in work or doing nothing, rarely steady
work.
The problem is when business is good you don't want to run out and hire a
new person and then have to fire them 6 months later if things dry up. But
when things do dry up it is the contract people that are the first to go, so
it is very fickle. Consider this when setting your fee. You need to charge
enough to live on and for your clients you are still way cheaper than a full
time staff person.
If you use the double the hourly rate calc. factor in vacation, insurance,
taxes ..... etc. because you cost your employer a lot more than you might
think. You need to make more than double if you do not have a steady job.
The other method you mention is a fixed price for the work. This is common
in our area and frankly gives you the opportunity to make more money. They
can take your bill and add say 25% and as long as they pull a profit on you
they will be happy, don't give it away.
My $1.50 worth of free advice.
Evan
wrote in message
news:5889616@discussion.autodesk.com...
I've been working in a salaried position for a little over 4 years, but I'll
be having a baby soon and plan to work from home. A business owner has
offered me an excellent freelance opportunity, but we have not yet discussed
rates. He says he will purchase my CAD software (AutoCad Architecture) for
me, and the license would belong to me to use for whatever purposes I want.
He says he would like to offer my services to his peers, who are equally
desperate for CAD drafting services. From his perspective even after buying
the software it will be cheaper than hiring a full-time salaried employee,
since his workload is seasonal.
I'm not sure how to determine my rate. I live in upstate NY, but the CAD
work would be nationwide. I have a B.S. in architecture, 4 years
professional work experience (but over 10 years CAD experience), and have
worked on several high-profile projects, including a nationally televised
sporting event.
If I were to double my current hourly rate as some people recommend, my
freelance rate would be around $46. I'm not sure if that is high or low.
I'm also wondering if it would be prudent to have a minimum price, since due
to the nature of the work it would take less and less time to complete the
projects (I could re-use previous work). Any insight would be appreciated!