📺 Develpreneur YouTube Episode

Video + transcript

Skill Sets for Success: Evolving from Coder to Developer

2024-08-20 •Youtube

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

Stay Connected: Join the Developreneur Community

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
1.35

[Music]

28.119

that so

31.88

um first off actually I'm sort of thing

34.399

I wonder if this would be a bonus kind

35.76

of thing because the things recommended

37.96

was that we do sort of like a an intro

41.52

ah it should probably be on the I think

42.84

it's gonna be on the podcast uh change

45.2

up the intro a little bit and one of the

47.079

things would be

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like uh probably like 30 seconds or less

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good thing bad thing that happened this

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week you know or since the last time

55.92

around which will be interesting when we

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do back to backs we'll just have to make

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something up like yeah we had two good

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things we'll pick one and pick another

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or something like that but it's a really

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it was actually something Natalie threw

67.28

at me that was

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a i it's a pretty cool little idea to

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throw out there from podcast just as a

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little bit of like a it's a little

75.08

different and it's a way to get people

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to you know can know sort of what's

78.84

going on with us and we can always use

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that that might spin into topics at some

82.52

point but I figure it's just a good like

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quick little like hey what's gone good

86.24

what's gone bad kind of thing um and it

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just breaks up our our normal

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introduction so that was one of the

93

things I was thinking we talked about

97.24

yesterday something that would be a good

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topic

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for the podcast and I'm trying to

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remember where we did

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that

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um or what that

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was did that have to do with the

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contract

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or statement of work or I don't remember

125

that's what I'm trying to uh let's see

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oh was it getting requirements oh here

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we

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go uh oh that's right this was the one

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about um this is actually a pretty good

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one because it gets into pricing and

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stuff like that and it was um developer

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versus designer and stuff like that it

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was sort of like flipping those things

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so I think I want

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to I think I want to talk about that a

150.08

little bit and about like understanding

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where your skills are and what you bring

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to the table particularly as you get

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further into your career I think this is

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a good developer journey early on I mean

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that's what you got you got coding you

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know you can write code and you can

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write it better the next year or

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something like that but somewhere along

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the way depending on how you do it

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you're getting better at like you're

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designing Solutions you can architect an

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entire solution you know you can put

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together more than just code you're now

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you know linking systems you're

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designing things you're doing the tests

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behind them you're doing all of that

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kind of stuff that really even in a lot

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of cases it's sort of like if you think

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of the sdlc process it's really more

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instead of on the implementation side

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it's that require requirements Gathering

196.599

and design you know steps that are more

200.959

in demand and we've talked about that in

202.4

the past when we talk about them is

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those people you don't have as many

205.12

people that can do that that's usually a

207.12

smaller team if you you know depending

209.36

on how big project is and it's and it's

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not it's much more Niche basically I

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guess or like you know skilled it's more

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like a skilled labor versus the coders

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where yeah there's skill there but it's

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not quite the same

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skills make sense yeah that that works

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all right then we just gonna Dive Right

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into this sucker hello and welcome back

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we are continuing our developer journey

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and this episode we are going to talk

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about skill sets this gets a little bit

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into everybody's favorite is like how

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much do I charge for what I

247.239

do and it also talks about it's it's

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going to get us thinking a little bit

251.84

about the things that we initially

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thought are really like our high value

256.4

pieces are actually as we go on are not

259.199

so much our high value pieces they're

261.56

we're getting different skill sets

264

before I do that I'll introduce

266.32

myself I am Rob Broadhead I'm one of the

268.6

founders of developing nor also devel a

270.919

founder of RB Consulting where we

273.6

integrate simplify and automate your

276.32

world to get you down to very simple

277.88

products we're trying something a little

280.12

new so I'm going to throw this at

281.32

Michael first and then I'll come back

282.639

and give mine which is basically we're

284.8

going to let him introduce and then give

286.96

me like a quick what's something good

289.32

like a good thing that happened today

290.639

and a bad thing that happened today

292.479

short we can't get too far off in the

295

weed so let's let's see how this works

297.6

go for it hey everyone my name name is

299.96

Michael malash I'm one of the founders

302

of developer and founder of advision QA

304.479

where we help small to midsize

306

businesses and clinicians build software

308.32

solutions that help improve their

310

business now for good and bad this week

313.16

the good I've been able to successfully

315.36

get a old database system kind of

319.639

articulated backed up uh into a newer

322.199

system downside I still have some data

325.08

issues I got to work out so where it

327.6

could be good uh almost 100% at least

330.12

I'm down to 1% that's

331.919

failing that's a pretty good good and

334.24

bad so I think I'll sort of go the same

336.88

way is uh good is I managed to get

340.88

there's a application I've worked on for

343

quite a while that I hadn't looked at

344.84

for a while so the bad thing is when I

346.44

looked at it I was like oh there was

347.88

some stuff that needed some cleaning

350.16

because there's some it's just it's one

352.759

of those you come back six months later

354.199

you're like what the heck was I thinking

355.6

even though it's been a couple years but

357.08

it was you know quick and dirty so the

359.759

bad news the bad thing is I looked at I

361.44

was like crap I got a lot of work to do

363.039

the good news is it wasn't too hard to

364.8

refactor it there's like 18 places

367.72

basically the same section of code was

369.479

there turn it into one section of code

371.199

clean them all up boom as I say Bob's

373.919

your uncle got a lot better lot faster

376.319

lot smoother uh interface so there you

379.52

go that's our that we've survived this

381.8

so we will continue on I want to talk

385.36

about in particular this gets into a

388.919

little bit into the the steps of the

390.72

sdlc the software development life cycle

393.599

which is you require you gather

396.039

requirements you design implementation

399.44

testing deployment maintenance you know

402.88

blah blah blah you're going through

404.08

those basically I'm sure I missed one

405.88

but it's basically it's those

407.479

six now I think we because we start out

412.8

our resume our calling card is code it's

418.039

what language do you know what have you

419.879

done in it basically and for us a lot of

422.16

us particularly when we start out it's

424.319

just like well I know that I've you I've

426

got X years of this technology I've been

428.479

doing you know Java for three years and

431.12

now I've been doing Java for four years

433

it's that's how we grow but there's a

435.4

point it's usually I think a lot of

438.16

times it's once you get into that three

439.599

to five year range and definitely once

441.599

you're getting into that five to seven

443

year range into your career and beyond

445.28

that there are other things that matter

447.72

on your resume and your value which also

450.68

is how you actually charge like what

453.16

your your rate is if you go out and you

455.199

consult or you've got a side hustle now

458.039

it's tempting to just say you know

460.68

you've got this steadily increasing

462.52

value that's based on on you as a

466.08

developer the thing is is that as you

469.28

develop more and as you become a better

471.759

developer not a coder this where we're

473.4

talking about being a better developer

475.12

there are skills and experiences you

477.08

have where you are now able to do things

479.199

for for example extract a database and

482.28

design a new structure for that or

486.199

gather requirements for an you know for

489.199

an application you can also help with

490.96

that there's other things around that

492.44

it's things like Gathering requirements

494.68

designing a solution estimating you're

497.319

better at estimating than you were five

499.36

years ago or 10 years ago using that to

503.319

uh help build better tests to help

505.919

design project plans and Milestones and

508.84

things like that

510.639

so you have a you're sort of going to be

512.76

moving out of development development's

515.76

always good but it's one of those and it

518.36

may be high value to some extent because

520.44

you may be solving unique problems but

524.68

you also have the more we'll call them

526.88

like the softer skills of design and

528.56

requirements Gathering which tend to be

530.88

much much more valuable to a project to

533.68

a customer the other thing that's in

535.72

there is your we'll call them your

538.279

management kinds of skill skills as you

540.44

you probably will grow into being some

542.12

sort of a lead or a mentor but there's

544.839

also some point that whether your title

546.76

is manager or not that you actually have

548.6

people that you sort of direct in some

551.24

way you manage in some way form or

553.32

fashion and they'll if you get down that

555.56

path then they talk about you know do

556.76

you have HR responsibilities like

558.76

reviews and raises and stuff like that

561.16

or other stuff

563.399

but the the Team Dynamics that you bring

568.079

also will start to allow you to

570.519

essentially charge a higher rate because

572.279

you have maybe worked with offshore

574.16

teams worked with cross functional teams

577.04

worked with teams that are in

579.76

a a hazardous or you know negative

582.68

environment sometimes you get in a

584

politically charged environment where

585.399

you've worked on a project that's one

587.72

person's Flagship and somebody else is

589.76

trying to sync it you there's there's

591.76

these kinds of stories and

593.839

skills that you bring to the table and

596.839

as you're looking at uh which some of us

599.56

do and this is what got this

600.92

conversation going is some of us price

603.72

ourselves we have billing rates based

605.839

more on what our function is so if you

608.519

hire us to you know let's just say for

610.92

example if you hire me to write Cobalt

612.839

code that's one rate if you hire me to

615.279

write Java code that's another rate

617.839

spoiler alert the cball code is going to

619.839

be an insanely High thing because I

621.36

don't want to ever do that but if you

624.2

hire for example as a to consult or to

627.92

manage or you to manage a team it's

630.04

going to be a different rate if it's to

631.88

design a solution as opposed to just

634.279

code something that has been already

636.72

highly require you know the requirements

638.24

have been highly refined and we're ready

639.76

to go those are different skill sets and

642.6

different rates and part of that works

645.279

with it's the market rate and part of it

648.839

has to do with like where you can you

650.48

know assign skills and not and then it

652.959

does get into situations where it's like

654.72

yeah you could hire you know us to go

657.079

write HTML code and a very simple little

660.24

application but we're probably not going

661.56

to want to do that at all because the

663.079

rate we're going to want to charge that

665.12

we need to charge at sort of our minimum

666.88

is going to be Way Beyond what that work

669.92

you know really entails because you can

671.92

find somebody less skilled those are

674.44

sort of my those are my opening thoughts

676.16

my parting you know my initial shots

678.519

across the bow so I want to throw that

680.68

to you and what are your thoughts and

682.44

what have you experienced with

684.36

this so it's one of the

687.8

biggest problems I've had with this

690.8

particular topic and we've discussed

693.8

this for Years is as we have moved up in

697.32

different positions with different

698.519

companies and that we you know we get

700.32

different salaries and certain markets

702.639

will pay certain things but then as we

705.48

started branching out on our own

706.8

starting to become Consultants starting

708.44

to build our own businesses and go after

710.56

new contracts we typically run into a

714.279

couple different areas

716.839

where it it's hard to say what your

719.959

worth is you know you essentially are

722.279

selling your company or your skills to

725.639

someone else so you have to kind of

726.959

prove that you can do it but also make

729.959

sure it's something that they can pay

733.12

are willing to pay and is actually

735.36

within the market so for instance you

738.519

know I could charge a rate of $85 to be

741.36

a Java developer to go WR code but in

745.76

some markets that's too high uh for

748.92

inance if we're trying to compete with

750.48

overseas typically we're going to have

752.32

to offer a lower rate if we're going up

754.32

against some offshore teams now if we

757.32

have a low bid competition where you

760.279

know stat side or you know within a

762.24

smaller sector uh you could charge a

765.16

higher rate because your skills aren't

767

very limited and in demand and there's

769.839

not going to be too much competition but

771.92

the other problem you run into is can

774.079

your customer even afford that you know

776.56

some of your smaller businesses don't

779.24

have a large amount of capital but they

781.079

need the help so that then you run into

783.68

a problem of well you have the skills

787.199

and you probably have a solution that

788.639

can help them but is it worth your time

791.839

and energy to do it because you're not

794.68

going to be able to request the rate

797.24

that you need because they they just

799.8

can't afford it for instance the

801.519

co-starters I went through there were

802.839

two people that one has this great idea

805.88

for an app but she literally is still

809.88

bootstrapping her business she's getting

811.48

grants and uh you know still building

814.92

the business so she does not have the

816.76

capital at all to even think about doing

819.199

this now that doesn't mean I'm not going

821.279

to offer or you know she can't ask for

823.56

guidance or things like that you know

825.8

more than happy to help there but I

827.56

can't write the solution for I mean it's

830.199

just that's not feasible but then you

832.88

have the other side of things where um

837.079

you know you run across a project that

838.6

it's something you really want to

841.36

do and you're willing to take a little

844

bit of a cut but like you said there

846.839

there's different levels to that so one

848.48

of the problems I

850.36

have always had is when do I charge more

854.32

for different services within a project

857.959

or within a statement of work and I

861.279

still struggle with that today I mean

862.6

you don't always know what your I mean

866.48

you can put a price tag on what your

868.44

skills are but you need to be mindful of

871.199

the market that you're in or the sector

872.92

you're

874.6

targeting I agree and there's there's a

877.48

lot there actually probably another

879.68

episode that we'll probably go into and

881.48

get a little deeper into that because

883.959

there are there there are a lot

887.519

of theories and thoughts around those

890.839

situations those are not unique to us

893.48

for example I think one of the really

895.959

one of the best easy to digest

899.44

discussions around pricing comes from

902.32

Tim Ferris is 4-Hour Work week is he

904.639

talks about um I think it's where I

907.639

think this is where he really got into

908.8

it is where he talks about quality of

911.48

customer and he talks about the kind of

913.32

work and some of those kinds of things

914.72

that you do and that really has that has

919.48

been more true to me than just about

921.199

anything else I have found that if I

925.079

want to compete we'll say with like you

927.639

know a lower cost offsh your team then

931.44

it's not worth it because I'm not going

933.399

to be able to provide the quality that I

936.319

want to at that lower price and even

939.839

when I've gone into customers and I've

941.68

said you know what I get where they're

944.399

at I really want to do this work for

945.959

them and I I give them a lower you know

948

discounted rate it ends up biting me

951.279

because they get used to that they're

954.68

still wanting you know really it's where

957.6

you're sort of you get stuck it's like

959.72

you have certain things that you want to

961.24

bring to the table and maybe you do

963.959

anyways but then they start sort of

965.839

taking that you know for granted and the

968.24

next thing you know you're you're being

969.639

sucked into something more so than you

972

want um one of the things I found that

974.279

does work is is work talk to them be

976.92

very open about like you know budgets

979.759

and stuff like that say Hey this is my

982.44

rate I don't think it's going to work

984.319

for you because here's your budget or

986.92

here's where you're at your

987.88

bootstrapping or things like that I've

989.519

got a customer for example where it's

991.279

just where it was basically there was a

994.44

huge amount of stuff that we wanted to

996.44

do together and it basically came down

999.399

to okay what can you afford on a you

1001.16

know on a what's your budget monthly

1002.72

weekly budget kind of thing and then

1005.399

what we'll do is we'll work into that

1007.759

and actually in this one I was just like

1009.36

you know what I'll

1010.759

just we'll aim for that we'll probably

1013.6

do more than that because we need to

1015.56

because there's just more work that we

1017.319

need to do on a weekly basis to keep it

1019.48

alive and to keep fresh and and to not

1022.759

sort of have to you know do a little bit

1024.799

of work and then pause and then come

1026.4

back and then do a little work and then

1028.4

pause and come back because there's all

1029.559

that restarting kind of uh effort that

1032.16

goes into it instead it's like tell you

1034.039

what you know your burn rate for example

1036.319

you know I'm just picking a number like

1037.4

if your burn rate is $10 a week and or

1040.52

like you know easier is like 10 hours a

1042.799

week you can afford that okay but we

1046

really need to do 15 hours a week of

1048.28

work then you can do like we did where

1050.64

we said well we're just going to charge

1051.6

you 10 hours a week and we're going to

1053.76

be just sort of like you know we're in

1055.64

the background we're going to be

1056.64

accumulating some extra stuff so

1058.44

somewhere along the way there's going to

1059.52

be like we're going to take a week off

1061.64

or we're going to get to a certain point

1063.24

where we're actually done for a while

1065.36

and then you're just going to keep

1066.36

getting bills to start you know working

1068.6

off that backlog now if you do something

1070.52

like that you know beware because it's

1073.08

one of those they could disappear on you

1074.6

they could screw you over there's a lot

1075.96

of things that could happen there where

1078.64

all all of that stuff could just

1080.52

disappear but you can work with your

1083.96

customers based on you know trust and

1086.24

things like that if you walk into a

1087.88

situation where you don't trust them and

1089.799

they're trying to lowball you I would

1092.08

just say walk away because if you start

1094.88

out in a that kind of a contentious kind

1098

of relationship where you're they're

1099.72

really trying to get like squeeze every

1101.799

penny out of you and you're you know

1104.28

you're not feeling comfortable about

1105.679

that you don't think you can afford to

1107.24

take them on as a customer then go with

1109.799

your gut and walk away now if it changes

1112.84

over time that's different because now

1114.36

you've invested they've invested there's

1116.039

all those things but if you know right

1118.24

away if that's from the start you're

1120.2

seeing that that's where you need to

1122.44

just back out and say you know what push

1124.48

it off to somebody else you're probably

1126.72

going to find yourself far better off

1128.919

not doing that project than you would

1131.559

have had you you done it it's a couple

1134.159

my thoughts there I'll give you some

1135.44

closing thoughts here before we wrap

1136.88

this one up yeah one of the things that

1140.84

brought to mind especially with software

1143.799

is you know the old business saying you

1145.96

get what you pay for the problem with

1149.12

what we do in this particular industry

1151.799

is it's not what you get what you pay

1153.72

for it's how badly is your reputation

1156.799

going to be damaged if you take on a

1159.32

project and you can't deliver for the

1161.159

cost meaning if you don't charge enough

1163.44

and you can't give them the quality that

1164.96

you're used to you're not going to get

1167.48

the referrals you're not going to get

1169.48

the uh you know five-star ratings and it

1172.4

could really impact you in the

1175.2

industry that is actually I think what

1177.799

we're going to cover in the next episode

1179.2

I think I want to get into that a little

1180.52

bit because

1181.679

there this is where it does it I think

1183.76

we're GNA we'll spill over into that one

1185.64

and talk

1187.039

about some of the things you can do and

1189.48

some of the things that you should not

1190.72

do as part of reducing costs and cutting

1193.799

corners and some of those kinds of

1195.12

things and it's this again this will be

1197.96

you know Lessons Learned and some some

1200.4

painful things and there and I'll talk

1203

to you a little bit we'll go a little

1204.2

bit into like

1205.88

why I think because we care you know why

1208.919

we want to do these things and why they

1210.36

have so much attraction but also why we

1212.159

have to be very careful because we can

1214.679

get you know a bite in the buttock as

1216.84

they say and so we have to watch out for

1219.32

that but we don't bite we are perfectly

1222.72

fine even if we were we're we're virtual

1225.72

so it doesn't really matter and we've

1227.08

had all our shots however ever you can

1229.48

let us know if you think our topics bite

1232.12

or are really cool by leaving us

1234.52

comments shoot us an email and info

1236.4

developer.com check us out on YouTube

1239.84

the develop preneur Channel we've got

1241.44

these and we've got so much other stuff

1243.52

school. developer.com you go out to the

1246.28

website leave us something on the forms

1248.799

um leave us comments anywhere anywhere

1250.799

you use podcast you know go ahead and

1253.52

and feel free to leave comments reviews

1255.28

all that kind of stuff we love the

1256.88

feedback we like to use that to generate

1259.4

topics and and where we want to go not

1261.36

only for single episodes but maybe even

1264.08

for entire Seasons as we move forward

1267.28

and uh at some point you in the not too

1270.039

distant future we'll actually be in

1271.679

season

1273

23 and so now is a perfect time for you

1275.96

to like give us some information see if

1277.559

you can give us some uh some you know

1279.52

some direction for that where do you

1280.88

want to go that being said we'll let you

1283.24

get back to it out there and have

1285.36

yourself a great day a great week and we

1287.64

will talk to you

1289.36

next

1290.159

time bonus

1292.679

material so one thing I would throw out

1296.24

that we we kind of briefly touched on

1298.919

but didn't get into too much

1300.88

detail if you are starting to go on your

1304.4

own if you're getting if you're kind of

1306.36

new to this Consulting thing or new to

1308.039

starting you know branching out from a

1309.96

full-time job look at sites like indeed

1313.08

look at sites like guru.com freelancer

1316.32

Fiverr see what people are charging for

1319.24

certain things you may have an idea of

1321.919

what you want to do so go look and see

1324.12

what other people offer for that

1326.12

particular area see what your

1328

competition is and then kind of price

1330.08

around that so that you're not pricing

1332.84

too high and hopefully not pricing too

1335.279

low and that's actually that goes into

1337.6

like branding and things like that is do

1339.12

you want to be uh a boutique consultant

1342.799

where you're going to charge higher

1343.96

rates but you're going to be very you

1345.24

know much more specific in what you do

1347.32

are you going to try to you know be a a

1349.64

bargain basement and do more work but do

1352.08

it fast and there's also lost leaders so

1355.2

you may go into a situation and say hey

1357.76

I really want to do this work it's not

1360.64

my normal rate but just be upfront about

1362.84

it and just say hey I can only I've had

1365.48

that sometimes where I've said you know

1366.76

I'm going to do this I I want to do this

1368.72

for you I can only afford you know x

1371.799

amount of hours a week or a month or

1374.559

whatever at that rate and then it's I've

1377.96

got to go you know I've got to go do

1379.32

other stuff because I've got to pay

1380.32

bills you know there's things like that

1381.72

so don't be afraid to just lay that

1383.84

stuff out there and say this is you know

1385.919

this is what it's going to cost this is

1387.32

where I'm going to help you um and then

1389.559

if you do stuff like you know throw

1392.4

extra hours at them or things like that

1394.2

which sometimes we do you know make sure

1396.44

that you sort of mention that along the

1397.84

way it's like hey by the way you know I

1399.6

only charge you for 10 hours but I

1401.12

actually work 15 hours on your project

1402.84

last week and I just I'm not going to

1404.279

you know not looking for a s store I

1406.279

just want to let you know that like I'm

1407.679

you know I'm committed this I'm throwing

1409.279

some extra stuff at you because

1410.799

sometimes you get further into a project

1413.159

and they feel because all they see is

1415.44

invoice they feel like you're not really

1417.679

you're just there for the buck and it

1419.64

doesn't hurt to like you know let them

1421.2

know it's like I'm not just there I'm

1422.88

not just here to turn a buck I'm here

1425.48

because I'm trying to solve your problem

1427.12

I'm trying to help you out and trying to

1429.32

make sure that you you know you end up

1430.96

in a better place when we get done with

1433.08

it hopefully you guys are in a better

1435.12

place than you were when we started this

1437.08

we're going to wrap this one up and

1439.52

we'll be back again soon with our next

1442.159

episode right into our next topic you

1444.2

may already know because we sort of

1445.6

talked about this I think we're going to

1446.76

get into next time we're just going to

1448.4

sort of like follow into this and it's

1451.32

how to work with a customer that is

1454.12

budget you know constraint in one fa way

1457.24

form or fashion talk about some of the

1458.96

different ways we can do it and some of

1461

the things you do not want to do uh if

1463.88

you get into those situations go out

1466.159

there have yourself a great one leave us

1468.44

comments and feedback we love that and

1470.88

we will talk to you next time

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[Music]