Detailed Notes
In the ever-evolving world of software development, the journey from novice coder to seasoned developer is marked by significant shifts in both skill sets and professional value. Our recent podcast episode delves into this transformation, offering insights into how developers can reassess their worth, adjust their rates, and adapt to new roles as they progress in their careers.
Read More ... https://develpreneur.com/skill-sets-for-success-evolving-from-coder-to-developer
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We invite you to join our community and share your coding journey with us. Whether you’re a seasoned developer or just starting, there’s always room to learn and grow together. Contact us at [email protected] with your questions, feedback, or suggestions for future episodes. Together, let’s continue exploring the exciting world of software development.
Additional Resources * Ramping Up Your Skills Through Broad Experience (https://develpreneur.com/ramping-up-your-skills-through-broad-experience/)
* Leverage Your Unique Skills – Interview With Tyler Foley (https://develpreneur.com/leverage-your-unique-skills-interview-with-tyler-foley/)
* Build A Company You Would Work For (https://develpreneur.com/build-a-company-you-would-work-for/)
* Pricing Strategies – The Value Of Your Product Or Service (https://develpreneur.com/pricing-strategies-the-value-of-your-product-or-service/)
Transcript Text
[Music] that so um first off actually I'm sort of thing I wonder if this would be a bonus kind of thing because the things recommended was that we do sort of like a an intro ah it should probably be on the I think it's gonna be on the podcast uh change up the intro a little bit and one of the things would be like uh probably like 30 seconds or less good thing bad thing that happened this week you know or since the last time around which will be interesting when we do back to backs we'll just have to make something up like yeah we had two good things we'll pick one and pick another or something like that but it's a really it was actually something Natalie threw at me that was a i it's a pretty cool little idea to throw out there from podcast just as a little bit of like a it's a little different and it's a way to get people to you know can know sort of what's going on with us and we can always use that that might spin into topics at some point but I figure it's just a good like quick little like hey what's gone good what's gone bad kind of thing um and it just breaks up our our normal introduction so that was one of the things I was thinking we talked about yesterday something that would be a good topic for the podcast and I'm trying to remember where we did that um or what that was did that have to do with the contract or statement of work or I don't remember that's what I'm trying to uh let's see oh was it getting requirements oh here we go uh oh that's right this was the one about um this is actually a pretty good one because it gets into pricing and stuff like that and it was um developer versus designer and stuff like that it was sort of like flipping those things so I think I want to I think I want to talk about that a little bit and about like understanding where your skills are and what you bring to the table particularly as you get further into your career I think this is a good developer journey early on I mean that's what you got you got coding you know you can write code and you can write it better the next year or something like that but somewhere along the way depending on how you do it you're getting better at like you're designing Solutions you can architect an entire solution you know you can put together more than just code you're now you know linking systems you're designing things you're doing the tests behind them you're doing all of that kind of stuff that really even in a lot of cases it's sort of like if you think of the sdlc process it's really more instead of on the implementation side it's that require requirements Gathering and design you know steps that are more in demand and we've talked about that in the past when we talk about them is those people you don't have as many people that can do that that's usually a smaller team if you you know depending on how big project is and it's and it's not it's much more Niche basically I guess or like you know skilled it's more like a skilled labor versus the coders where yeah there's skill there but it's not quite the same skills make sense yeah that that works all right then we just gonna Dive Right into this sucker hello and welcome back we are continuing our developer journey and this episode we are going to talk about skill sets this gets a little bit into everybody's favorite is like how much do I charge for what I do and it also talks about it's it's going to get us thinking a little bit about the things that we initially thought are really like our high value pieces are actually as we go on are not so much our high value pieces they're we're getting different skill sets before I do that I'll introduce myself I am Rob Broadhead I'm one of the founders of developing nor also devel a founder of RB Consulting where we integrate simplify and automate your world to get you down to very simple products we're trying something a little new so I'm going to throw this at Michael first and then I'll come back and give mine which is basically we're going to let him introduce and then give me like a quick what's something good like a good thing that happened today and a bad thing that happened today short we can't get too far off in the weed so let's let's see how this works go for it hey everyone my name name is Michael malash I'm one of the founders of developer and founder of advision QA where we help small to midsize businesses and clinicians build software solutions that help improve their business now for good and bad this week the good I've been able to successfully get a old database system kind of articulated backed up uh into a newer system downside I still have some data issues I got to work out so where it could be good uh almost 100% at least I'm down to 1% that's failing that's a pretty good good and bad so I think I'll sort of go the same way is uh good is I managed to get there's a application I've worked on for quite a while that I hadn't looked at for a while so the bad thing is when I looked at it I was like oh there was some stuff that needed some cleaning because there's some it's just it's one of those you come back six months later you're like what the heck was I thinking even though it's been a couple years but it was you know quick and dirty so the bad news the bad thing is I looked at I was like crap I got a lot of work to do the good news is it wasn't too hard to refactor it there's like 18 places basically the same section of code was there turn it into one section of code clean them all up boom as I say Bob's your uncle got a lot better lot faster lot smoother uh interface so there you go that's our that we've survived this so we will continue on I want to talk about in particular this gets into a little bit into the the steps of the sdlc the software development life cycle which is you require you gather requirements you design implementation testing deployment maintenance you know blah blah blah you're going through those basically I'm sure I missed one but it's basically it's those six now I think we because we start out our resume our calling card is code it's what language do you know what have you done in it basically and for us a lot of us particularly when we start out it's just like well I know that I've you I've got X years of this technology I've been doing you know Java for three years and now I've been doing Java for four years it's that's how we grow but there's a point it's usually I think a lot of times it's once you get into that three to five year range and definitely once you're getting into that five to seven year range into your career and beyond that there are other things that matter on your resume and your value which also is how you actually charge like what your your rate is if you go out and you consult or you've got a side hustle now it's tempting to just say you know you've got this steadily increasing value that's based on on you as a developer the thing is is that as you develop more and as you become a better developer not a coder this where we're talking about being a better developer there are skills and experiences you have where you are now able to do things for for example extract a database and design a new structure for that or gather requirements for an you know for an application you can also help with that there's other things around that it's things like Gathering requirements designing a solution estimating you're better at estimating than you were five years ago or 10 years ago using that to uh help build better tests to help design project plans and Milestones and things like that so you have a you're sort of going to be moving out of development development's always good but it's one of those and it may be high value to some extent because you may be solving unique problems but you also have the more we'll call them like the softer skills of design and requirements Gathering which tend to be much much more valuable to a project to a customer the other thing that's in there is your we'll call them your management kinds of skill skills as you you probably will grow into being some sort of a lead or a mentor but there's also some point that whether your title is manager or not that you actually have people that you sort of direct in some way you manage in some way form or fashion and they'll if you get down that path then they talk about you know do you have HR responsibilities like reviews and raises and stuff like that or other stuff but the the Team Dynamics that you bring also will start to allow you to essentially charge a higher rate because you have maybe worked with offshore teams worked with cross functional teams worked with teams that are in a a hazardous or you know negative environment sometimes you get in a politically charged environment where you've worked on a project that's one person's Flagship and somebody else is trying to sync it you there's there's these kinds of stories and skills that you bring to the table and as you're looking at uh which some of us do and this is what got this conversation going is some of us price ourselves we have billing rates based more on what our function is so if you hire us to you know let's just say for example if you hire me to write Cobalt code that's one rate if you hire me to write Java code that's another rate spoiler alert the cball code is going to be an insanely High thing because I don't want to ever do that but if you hire for example as a to consult or to manage or you to manage a team it's going to be a different rate if it's to design a solution as opposed to just code something that has been already highly require you know the requirements have been highly refined and we're ready to go those are different skill sets and different rates and part of that works with it's the market rate and part of it has to do with like where you can you know assign skills and not and then it does get into situations where it's like yeah you could hire you know us to go write HTML code and a very simple little application but we're probably not going to want to do that at all because the rate we're going to want to charge that we need to charge at sort of our minimum is going to be Way Beyond what that work you know really entails because you can find somebody less skilled those are sort of my those are my opening thoughts my parting you know my initial shots across the bow so I want to throw that to you and what are your thoughts and what have you experienced with this so it's one of the biggest problems I've had with this particular topic and we've discussed this for Years is as we have moved up in different positions with different companies and that we you know we get different salaries and certain markets will pay certain things but then as we started branching out on our own starting to become Consultants starting to build our own businesses and go after new contracts we typically run into a couple different areas where it it's hard to say what your worth is you know you essentially are selling your company or your skills to someone else so you have to kind of prove that you can do it but also make sure it's something that they can pay are willing to pay and is actually within the market so for instance you know I could charge a rate of $85 to be a Java developer to go WR code but in some markets that's too high uh for inance if we're trying to compete with overseas typically we're going to have to offer a lower rate if we're going up against some offshore teams now if we have a low bid competition where you know stat side or you know within a smaller sector uh you could charge a higher rate because your skills aren't very limited and in demand and there's not going to be too much competition but the other problem you run into is can your customer even afford that you know some of your smaller businesses don't have a large amount of capital but they need the help so that then you run into a problem of well you have the skills and you probably have a solution that can help them but is it worth your time and energy to do it because you're not going to be able to request the rate that you need because they they just can't afford it for instance the co-starters I went through there were two people that one has this great idea for an app but she literally is still bootstrapping her business she's getting grants and uh you know still building the business so she does not have the capital at all to even think about doing this now that doesn't mean I'm not going to offer or you know she can't ask for guidance or things like that you know more than happy to help there but I can't write the solution for I mean it's just that's not feasible but then you have the other side of things where um you know you run across a project that it's something you really want to do and you're willing to take a little bit of a cut but like you said there there's different levels to that so one of the problems I have always had is when do I charge more for different services within a project or within a statement of work and I still struggle with that today I mean you don't always know what your I mean you can put a price tag on what your skills are but you need to be mindful of the market that you're in or the sector you're targeting I agree and there's there's a lot there actually probably another episode that we'll probably go into and get a little deeper into that because there are there there are a lot of theories and thoughts around those situations those are not unique to us for example I think one of the really one of the best easy to digest discussions around pricing comes from Tim Ferris is 4-Hour Work week is he talks about um I think it's where I think this is where he really got into it is where he talks about quality of customer and he talks about the kind of work and some of those kinds of things that you do and that really has that has been more true to me than just about anything else I have found that if I want to compete we'll say with like you know a lower cost offsh your team then it's not worth it because I'm not going to be able to provide the quality that I want to at that lower price and even when I've gone into customers and I've said you know what I get where they're at I really want to do this work for them and I I give them a lower you know discounted rate it ends up biting me because they get used to that they're still wanting you know really it's where you're sort of you get stuck it's like you have certain things that you want to bring to the table and maybe you do anyways but then they start sort of taking that you know for granted and the next thing you know you're you're being sucked into something more so than you want um one of the things I found that does work is is work talk to them be very open about like you know budgets and stuff like that say Hey this is my rate I don't think it's going to work for you because here's your budget or here's where you're at your bootstrapping or things like that I've got a customer for example where it's just where it was basically there was a huge amount of stuff that we wanted to do together and it basically came down to okay what can you afford on a you know on a what's your budget monthly weekly budget kind of thing and then what we'll do is we'll work into that and actually in this one I was just like you know what I'll just we'll aim for that we'll probably do more than that because we need to because there's just more work that we need to do on a weekly basis to keep it alive and to keep fresh and and to not sort of have to you know do a little bit of work and then pause and then come back and then do a little work and then pause and come back because there's all that restarting kind of uh effort that goes into it instead it's like tell you what you know your burn rate for example you know I'm just picking a number like if your burn rate is $10 a week and or like you know easier is like 10 hours a week you can afford that okay but we really need to do 15 hours a week of work then you can do like we did where we said well we're just going to charge you 10 hours a week and we're going to be just sort of like you know we're in the background we're going to be accumulating some extra stuff so somewhere along the way there's going to be like we're going to take a week off or we're going to get to a certain point where we're actually done for a while and then you're just going to keep getting bills to start you know working off that backlog now if you do something like that you know beware because it's one of those they could disappear on you they could screw you over there's a lot of things that could happen there where all all of that stuff could just disappear but you can work with your customers based on you know trust and things like that if you walk into a situation where you don't trust them and they're trying to lowball you I would just say walk away because if you start out in a that kind of a contentious kind of relationship where you're they're really trying to get like squeeze every penny out of you and you're you know you're not feeling comfortable about that you don't think you can afford to take them on as a customer then go with your gut and walk away now if it changes over time that's different because now you've invested they've invested there's all those things but if you know right away if that's from the start you're seeing that that's where you need to just back out and say you know what push it off to somebody else you're probably going to find yourself far better off not doing that project than you would have had you you done it it's a couple my thoughts there I'll give you some closing thoughts here before we wrap this one up yeah one of the things that brought to mind especially with software is you know the old business saying you get what you pay for the problem with what we do in this particular industry is it's not what you get what you pay for it's how badly is your reputation going to be damaged if you take on a project and you can't deliver for the cost meaning if you don't charge enough and you can't give them the quality that you're used to you're not going to get the referrals you're not going to get the uh you know five-star ratings and it could really impact you in the industry that is actually I think what we're going to cover in the next episode I think I want to get into that a little bit because there this is where it does it I think we're GNA we'll spill over into that one and talk about some of the things you can do and some of the things that you should not do as part of reducing costs and cutting corners and some of those kinds of things and it's this again this will be you know Lessons Learned and some some painful things and there and I'll talk to you a little bit we'll go a little bit into like why I think because we care you know why we want to do these things and why they have so much attraction but also why we have to be very careful because we can get you know a bite in the buttock as they say and so we have to watch out for that but we don't bite we are perfectly fine even if we were we're we're virtual so it doesn't really matter and we've had all our shots however ever you can let us know if you think our topics bite or are really cool by leaving us comments shoot us an email and info developer.com check us out on YouTube the develop preneur Channel we've got these and we've got so much other stuff school. developer.com you go out to the website leave us something on the forms um leave us comments anywhere anywhere you use podcast you know go ahead and and feel free to leave comments reviews all that kind of stuff we love the feedback we like to use that to generate topics and and where we want to go not only for single episodes but maybe even for entire Seasons as we move forward and uh at some point you in the not too distant future we'll actually be in season 23 and so now is a perfect time for you to like give us some information see if you can give us some uh some you know some direction for that where do you want to go that being said we'll let you get back to it out there and have yourself a great day a great week and we will talk to you next time bonus material so one thing I would throw out that we we kind of briefly touched on but didn't get into too much detail if you are starting to go on your own if you're getting if you're kind of new to this Consulting thing or new to starting you know branching out from a full-time job look at sites like indeed look at sites like guru.com freelancer Fiverr see what people are charging for certain things you may have an idea of what you want to do so go look and see what other people offer for that particular area see what your competition is and then kind of price around that so that you're not pricing too high and hopefully not pricing too low and that's actually that goes into like branding and things like that is do you want to be uh a boutique consultant where you're going to charge higher rates but you're going to be very you know much more specific in what you do are you going to try to you know be a a bargain basement and do more work but do it fast and there's also lost leaders so you may go into a situation and say hey I really want to do this work it's not my normal rate but just be upfront about it and just say hey I can only I've had that sometimes where I've said you know I'm going to do this I I want to do this for you I can only afford you know x amount of hours a week or a month or whatever at that rate and then it's I've got to go you know I've got to go do other stuff because I've got to pay bills you know there's things like that so don't be afraid to just lay that stuff out there and say this is you know this is what it's going to cost this is where I'm going to help you um and then if you do stuff like you know throw extra hours at them or things like that which sometimes we do you know make sure that you sort of mention that along the way it's like hey by the way you know I only charge you for 10 hours but I actually work 15 hours on your project last week and I just I'm not going to you know not looking for a s store I just want to let you know that like I'm you know I'm committed this I'm throwing some extra stuff at you because sometimes you get further into a project and they feel because all they see is invoice they feel like you're not really you're just there for the buck and it doesn't hurt to like you know let them know it's like I'm not just there I'm not just here to turn a buck I'm here because I'm trying to solve your problem I'm trying to help you out and trying to make sure that you you know you end up in a better place when we get done with it hopefully you guys are in a better place than you were when we started this we're going to wrap this one up and we'll be back again soon with our next episode right into our next topic you may already know because we sort of talked about this I think we're going to get into next time we're just going to sort of like follow into this and it's how to work with a customer that is budget you know constraint in one fa way form or fashion talk about some of the different ways we can do it and some of the things you do not want to do uh if you get into those situations go out there have yourself a great one leave us comments and feedback we love that and we will talk to you next time [Music]
Transcript Segments
[Music]
that so
um first off actually I'm sort of thing
I wonder if this would be a bonus kind
of thing because the things recommended
was that we do sort of like a an intro
ah it should probably be on the I think
it's gonna be on the podcast uh change
up the intro a little bit and one of the
things would be
like uh probably like 30 seconds or less
good thing bad thing that happened this
week you know or since the last time
around which will be interesting when we
do back to backs we'll just have to make
something up like yeah we had two good
things we'll pick one and pick another
or something like that but it's a really
it was actually something Natalie threw
at me that was
a i it's a pretty cool little idea to
throw out there from podcast just as a
little bit of like a it's a little
different and it's a way to get people
to you know can know sort of what's
going on with us and we can always use
that that might spin into topics at some
point but I figure it's just a good like
quick little like hey what's gone good
what's gone bad kind of thing um and it
just breaks up our our normal
introduction so that was one of the
things I was thinking we talked about
yesterday something that would be a good
topic
for the podcast and I'm trying to
remember where we did
that
um or what that
was did that have to do with the
contract
or statement of work or I don't remember
that's what I'm trying to uh let's see
oh was it getting requirements oh here
we
go uh oh that's right this was the one
about um this is actually a pretty good
one because it gets into pricing and
stuff like that and it was um developer
versus designer and stuff like that it
was sort of like flipping those things
so I think I want
to I think I want to talk about that a
little bit and about like understanding
where your skills are and what you bring
to the table particularly as you get
further into your career I think this is
a good developer journey early on I mean
that's what you got you got coding you
know you can write code and you can
write it better the next year or
something like that but somewhere along
the way depending on how you do it
you're getting better at like you're
designing Solutions you can architect an
entire solution you know you can put
together more than just code you're now
you know linking systems you're
designing things you're doing the tests
behind them you're doing all of that
kind of stuff that really even in a lot
of cases it's sort of like if you think
of the sdlc process it's really more
instead of on the implementation side
it's that require requirements Gathering
and design you know steps that are more
in demand and we've talked about that in
the past when we talk about them is
those people you don't have as many
people that can do that that's usually a
smaller team if you you know depending
on how big project is and it's and it's
not it's much more Niche basically I
guess or like you know skilled it's more
like a skilled labor versus the coders
where yeah there's skill there but it's
not quite the same
skills make sense yeah that that works
all right then we just gonna Dive Right
into this sucker hello and welcome back
we are continuing our developer journey
and this episode we are going to talk
about skill sets this gets a little bit
into everybody's favorite is like how
much do I charge for what I
do and it also talks about it's it's
going to get us thinking a little bit
about the things that we initially
thought are really like our high value
pieces are actually as we go on are not
so much our high value pieces they're
we're getting different skill sets
before I do that I'll introduce
myself I am Rob Broadhead I'm one of the
founders of developing nor also devel a
founder of RB Consulting where we
integrate simplify and automate your
world to get you down to very simple
products we're trying something a little
new so I'm going to throw this at
Michael first and then I'll come back
and give mine which is basically we're
going to let him introduce and then give
me like a quick what's something good
like a good thing that happened today
and a bad thing that happened today
short we can't get too far off in the
weed so let's let's see how this works
go for it hey everyone my name name is
Michael malash I'm one of the founders
of developer and founder of advision QA
where we help small to midsize
businesses and clinicians build software
solutions that help improve their
business now for good and bad this week
the good I've been able to successfully
get a old database system kind of
articulated backed up uh into a newer
system downside I still have some data
issues I got to work out so where it
could be good uh almost 100% at least
I'm down to 1% that's
failing that's a pretty good good and
bad so I think I'll sort of go the same
way is uh good is I managed to get
there's a application I've worked on for
quite a while that I hadn't looked at
for a while so the bad thing is when I
looked at it I was like oh there was
some stuff that needed some cleaning
because there's some it's just it's one
of those you come back six months later
you're like what the heck was I thinking
even though it's been a couple years but
it was you know quick and dirty so the
bad news the bad thing is I looked at I
was like crap I got a lot of work to do
the good news is it wasn't too hard to
refactor it there's like 18 places
basically the same section of code was
there turn it into one section of code
clean them all up boom as I say Bob's
your uncle got a lot better lot faster
lot smoother uh interface so there you
go that's our that we've survived this
so we will continue on I want to talk
about in particular this gets into a
little bit into the the steps of the
sdlc the software development life cycle
which is you require you gather
requirements you design implementation
testing deployment maintenance you know
blah blah blah you're going through
those basically I'm sure I missed one
but it's basically it's those
six now I think we because we start out
our resume our calling card is code it's
what language do you know what have you
done in it basically and for us a lot of
us particularly when we start out it's
just like well I know that I've you I've
got X years of this technology I've been
doing you know Java for three years and
now I've been doing Java for four years
it's that's how we grow but there's a
point it's usually I think a lot of
times it's once you get into that three
to five year range and definitely once
you're getting into that five to seven
year range into your career and beyond
that there are other things that matter
on your resume and your value which also
is how you actually charge like what
your your rate is if you go out and you
consult or you've got a side hustle now
it's tempting to just say you know
you've got this steadily increasing
value that's based on on you as a
developer the thing is is that as you
develop more and as you become a better
developer not a coder this where we're
talking about being a better developer
there are skills and experiences you
have where you are now able to do things
for for example extract a database and
design a new structure for that or
gather requirements for an you know for
an application you can also help with
that there's other things around that
it's things like Gathering requirements
designing a solution estimating you're
better at estimating than you were five
years ago or 10 years ago using that to
uh help build better tests to help
design project plans and Milestones and
things like that
so you have a you're sort of going to be
moving out of development development's
always good but it's one of those and it
may be high value to some extent because
you may be solving unique problems but
you also have the more we'll call them
like the softer skills of design and
requirements Gathering which tend to be
much much more valuable to a project to
a customer the other thing that's in
there is your we'll call them your
management kinds of skill skills as you
you probably will grow into being some
sort of a lead or a mentor but there's
also some point that whether your title
is manager or not that you actually have
people that you sort of direct in some
way you manage in some way form or
fashion and they'll if you get down that
path then they talk about you know do
you have HR responsibilities like
reviews and raises and stuff like that
or other stuff
but the the Team Dynamics that you bring
also will start to allow you to
essentially charge a higher rate because
you have maybe worked with offshore
teams worked with cross functional teams
worked with teams that are in
a a hazardous or you know negative
environment sometimes you get in a
politically charged environment where
you've worked on a project that's one
person's Flagship and somebody else is
trying to sync it you there's there's
these kinds of stories and
skills that you bring to the table and
as you're looking at uh which some of us
do and this is what got this
conversation going is some of us price
ourselves we have billing rates based
more on what our function is so if you
hire us to you know let's just say for
example if you hire me to write Cobalt
code that's one rate if you hire me to
write Java code that's another rate
spoiler alert the cball code is going to
be an insanely High thing because I
don't want to ever do that but if you
hire for example as a to consult or to
manage or you to manage a team it's
going to be a different rate if it's to
design a solution as opposed to just
code something that has been already
highly require you know the requirements
have been highly refined and we're ready
to go those are different skill sets and
different rates and part of that works
with it's the market rate and part of it
has to do with like where you can you
know assign skills and not and then it
does get into situations where it's like
yeah you could hire you know us to go
write HTML code and a very simple little
application but we're probably not going
to want to do that at all because the
rate we're going to want to charge that
we need to charge at sort of our minimum
is going to be Way Beyond what that work
you know really entails because you can
find somebody less skilled those are
sort of my those are my opening thoughts
my parting you know my initial shots
across the bow so I want to throw that
to you and what are your thoughts and
what have you experienced with
this so it's one of the
biggest problems I've had with this
particular topic and we've discussed
this for Years is as we have moved up in
different positions with different
companies and that we you know we get
different salaries and certain markets
will pay certain things but then as we
started branching out on our own
starting to become Consultants starting
to build our own businesses and go after
new contracts we typically run into a
couple different areas
where it it's hard to say what your
worth is you know you essentially are
selling your company or your skills to
someone else so you have to kind of
prove that you can do it but also make
sure it's something that they can pay
are willing to pay and is actually
within the market so for instance you
know I could charge a rate of $85 to be
a Java developer to go WR code but in
some markets that's too high uh for
inance if we're trying to compete with
overseas typically we're going to have
to offer a lower rate if we're going up
against some offshore teams now if we
have a low bid competition where you
know stat side or you know within a
smaller sector uh you could charge a
higher rate because your skills aren't
very limited and in demand and there's
not going to be too much competition but
the other problem you run into is can
your customer even afford that you know
some of your smaller businesses don't
have a large amount of capital but they
need the help so that then you run into
a problem of well you have the skills
and you probably have a solution that
can help them but is it worth your time
and energy to do it because you're not
going to be able to request the rate
that you need because they they just
can't afford it for instance the
co-starters I went through there were
two people that one has this great idea
for an app but she literally is still
bootstrapping her business she's getting
grants and uh you know still building
the business so she does not have the
capital at all to even think about doing
this now that doesn't mean I'm not going
to offer or you know she can't ask for
guidance or things like that you know
more than happy to help there but I
can't write the solution for I mean it's
just that's not feasible but then you
have the other side of things where um
you know you run across a project that
it's something you really want to
do and you're willing to take a little
bit of a cut but like you said there
there's different levels to that so one
of the problems I
have always had is when do I charge more
for different services within a project
or within a statement of work and I
still struggle with that today I mean
you don't always know what your I mean
you can put a price tag on what your
skills are but you need to be mindful of
the market that you're in or the sector
you're
targeting I agree and there's there's a
lot there actually probably another
episode that we'll probably go into and
get a little deeper into that because
there are there there are a lot
of theories and thoughts around those
situations those are not unique to us
for example I think one of the really
one of the best easy to digest
discussions around pricing comes from
Tim Ferris is 4-Hour Work week is he
talks about um I think it's where I
think this is where he really got into
it is where he talks about quality of
customer and he talks about the kind of
work and some of those kinds of things
that you do and that really has that has
been more true to me than just about
anything else I have found that if I
want to compete we'll say with like you
know a lower cost offsh your team then
it's not worth it because I'm not going
to be able to provide the quality that I
want to at that lower price and even
when I've gone into customers and I've
said you know what I get where they're
at I really want to do this work for
them and I I give them a lower you know
discounted rate it ends up biting me
because they get used to that they're
still wanting you know really it's where
you're sort of you get stuck it's like
you have certain things that you want to
bring to the table and maybe you do
anyways but then they start sort of
taking that you know for granted and the
next thing you know you're you're being
sucked into something more so than you
want um one of the things I found that
does work is is work talk to them be
very open about like you know budgets
and stuff like that say Hey this is my
rate I don't think it's going to work
for you because here's your budget or
here's where you're at your
bootstrapping or things like that I've
got a customer for example where it's
just where it was basically there was a
huge amount of stuff that we wanted to
do together and it basically came down
to okay what can you afford on a you
know on a what's your budget monthly
weekly budget kind of thing and then
what we'll do is we'll work into that
and actually in this one I was just like
you know what I'll
just we'll aim for that we'll probably
do more than that because we need to
because there's just more work that we
need to do on a weekly basis to keep it
alive and to keep fresh and and to not
sort of have to you know do a little bit
of work and then pause and then come
back and then do a little work and then
pause and come back because there's all
that restarting kind of uh effort that
goes into it instead it's like tell you
what you know your burn rate for example
you know I'm just picking a number like
if your burn rate is $10 a week and or
like you know easier is like 10 hours a
week you can afford that okay but we
really need to do 15 hours a week of
work then you can do like we did where
we said well we're just going to charge
you 10 hours a week and we're going to
be just sort of like you know we're in
the background we're going to be
accumulating some extra stuff so
somewhere along the way there's going to
be like we're going to take a week off
or we're going to get to a certain point
where we're actually done for a while
and then you're just going to keep
getting bills to start you know working
off that backlog now if you do something
like that you know beware because it's
one of those they could disappear on you
they could screw you over there's a lot
of things that could happen there where
all all of that stuff could just
disappear but you can work with your
customers based on you know trust and
things like that if you walk into a
situation where you don't trust them and
they're trying to lowball you I would
just say walk away because if you start
out in a that kind of a contentious kind
of relationship where you're they're
really trying to get like squeeze every
penny out of you and you're you know
you're not feeling comfortable about
that you don't think you can afford to
take them on as a customer then go with
your gut and walk away now if it changes
over time that's different because now
you've invested they've invested there's
all those things but if you know right
away if that's from the start you're
seeing that that's where you need to
just back out and say you know what push
it off to somebody else you're probably
going to find yourself far better off
not doing that project than you would
have had you you done it it's a couple
my thoughts there I'll give you some
closing thoughts here before we wrap
this one up yeah one of the things that
brought to mind especially with software
is you know the old business saying you
get what you pay for the problem with
what we do in this particular industry
is it's not what you get what you pay
for it's how badly is your reputation
going to be damaged if you take on a
project and you can't deliver for the
cost meaning if you don't charge enough
and you can't give them the quality that
you're used to you're not going to get
the referrals you're not going to get
the uh you know five-star ratings and it
could really impact you in the
industry that is actually I think what
we're going to cover in the next episode
I think I want to get into that a little
bit because
there this is where it does it I think
we're GNA we'll spill over into that one
and talk
about some of the things you can do and
some of the things that you should not
do as part of reducing costs and cutting
corners and some of those kinds of
things and it's this again this will be
you know Lessons Learned and some some
painful things and there and I'll talk
to you a little bit we'll go a little
bit into like
why I think because we care you know why
we want to do these things and why they
have so much attraction but also why we
have to be very careful because we can
get you know a bite in the buttock as
they say and so we have to watch out for
that but we don't bite we are perfectly
fine even if we were we're we're virtual
so it doesn't really matter and we've
had all our shots however ever you can
let us know if you think our topics bite
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topics and and where we want to go not
only for single episodes but maybe even
for entire Seasons as we move forward
and uh at some point you in the not too
distant future we'll actually be in
season
23 and so now is a perfect time for you
to like give us some information see if
you can give us some uh some you know
some direction for that where do you
want to go that being said we'll let you
get back to it out there and have
yourself a great day a great week and we
will talk to you
next
time bonus
material so one thing I would throw out
that we we kind of briefly touched on
but didn't get into too much
detail if you are starting to go on your
own if you're getting if you're kind of
new to this Consulting thing or new to
starting you know branching out from a
full-time job look at sites like indeed
look at sites like guru.com freelancer
Fiverr see what people are charging for
certain things you may have an idea of
what you want to do so go look and see
what other people offer for that
particular area see what your
competition is and then kind of price
around that so that you're not pricing
too high and hopefully not pricing too
low and that's actually that goes into
like branding and things like that is do
you want to be uh a boutique consultant
where you're going to charge higher
rates but you're going to be very you
know much more specific in what you do
are you going to try to you know be a a
bargain basement and do more work but do
it fast and there's also lost leaders so
you may go into a situation and say hey
I really want to do this work it's not
my normal rate but just be upfront about
it and just say hey I can only I've had
that sometimes where I've said you know
I'm going to do this I I want to do this
for you I can only afford you know x
amount of hours a week or a month or
whatever at that rate and then it's I've
got to go you know I've got to go do
other stuff because I've got to pay
bills you know there's things like that
so don't be afraid to just lay that
stuff out there and say this is you know
this is what it's going to cost this is
where I'm going to help you um and then
if you do stuff like you know throw
extra hours at them or things like that
which sometimes we do you know make sure
that you sort of mention that along the
way it's like hey by the way you know I
only charge you for 10 hours but I
actually work 15 hours on your project
last week and I just I'm not going to
you know not looking for a s store I
just want to let you know that like I'm
you know I'm committed this I'm throwing
some extra stuff at you because
sometimes you get further into a project
and they feel because all they see is
invoice they feel like you're not really
you're just there for the buck and it
doesn't hurt to like you know let them
know it's like I'm not just there I'm
not just here to turn a buck I'm here
because I'm trying to solve your problem
I'm trying to help you out and trying to
make sure that you you know you end up
in a better place when we get done with
it hopefully you guys are in a better
place than you were when we started this
we're going to wrap this one up and
we'll be back again soon with our next
episode right into our next topic you
may already know because we sort of
talked about this I think we're going to
get into next time we're just going to
sort of like follow into this and it's
how to work with a customer that is
budget you know constraint in one fa way
form or fashion talk about some of the
different ways we can do it and some of
the things you do not want to do uh if
you get into those situations go out
there have yourself a great one leave us
comments and feedback we love that and
we will talk to you next time
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