# What should I ask for an hourly rate?

**URL:** <https://www.ruby-forum.com/t/what-should-i-ask-for-an-hourly-rate/84039>\
**Category:** Rails\
**Created:** [January 31, 2007, 7:01pm UTC](https://www.ruby-forum.com/t/what-should-i-ask-for-an-hourly-rate/84039 "2007-01-31T19:01:49Z")\
**Posts on this page:** 6\
**Page:** 1

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**Author:** ![surf](https://www.ruby-forum.com/letter_avatar_proxy/v4/letter/s/77aa72/32.png) [@surf](https://www.ruby-forum.com/u/surf)\
**Post date:** [January 31, 2007, 7:01pm UTC](https://www.ruby-forum.com/t/what-should-i-ask-for-an-hourly-rate/84039/1 "2007-01-31T19:01:49Z")

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I would like some advice on how much to quote an hourly rate for  
Rails work. Since I am anxious to do some Rails stuff I quote lower  
rates for Rails work than other stuff and I have been quoting less  
than $40/hour even though I think I am a good developer. The problem I  
am having is that I do not have alot of web development experience on  
my resume. I have 10 years of C++, some Java, and 3 years of Perl. I  
have studied Javascript, HTML, and some CSS and played with all that.  
I’ve worked on 2 or 3 actual websites and did some Rails/AJAX stuff,  
but I am a good developer. If someone wanted to critque my resume I  
can send a copy. I don’t check my yahoo mail that often and it’s full  
of spam, if you send me email, perhaps make a note of it here so I  
know to check it. I am thinking of going to the unemployment office  
for free coaching on interviewing etc.

Thanks

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**Author:** ![surf](https://www.ruby-forum.com/letter_avatar_proxy/v4/letter/s/77aa72/32.png) [@surf](https://www.ruby-forum.com/u/surf)\
**Post date:** [January 31, 2007, 8:16pm UTC](https://www.ruby-forum.com/t/what-should-i-ask-for-an-hourly-rate/84039/2 "2007-01-31T20:16:58Z")

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On Jan 31, 2007, at 1:00 PM, surf wrote:

> of spam, if you send me email, perhaps make a note of it here so I  
> know to check it. I am thinking of going to the unemployment office  
> for free coaching on interviewing etc.
> 
> Thanks

I can’t tell you what rate works for you, but I can give you some  
general advice.

Figure out what you realistically need to make including taxes and  
time between “billable” jobs and then add a profit margin. You’ll  
very likely be surprised by the number, but DON’T sell yourself  
cheap. Even if you’re “making a living” from a salaried position  
doing something else (which I suspect is _not_ the case as you  
mention the unemployment office), quoting a low rate in order to get  
the work is just increasing the likelihood of finding a client that’s  
trying to get the work done “on the cheap.”

I’ve talked to many independent Rails developers and everyone agrees  
that they probably aren’t charging enough since they’re fully  
consumed at their current rates. No one was anywhere near as low as  
$40/hr either.

If you haven’t already, you should look at the jobs/gigs lists below  
and respond to every one that you can. Many are looking for  
developers with HTML/CSS/JavaScript experience so you may be able to  
leverage that against your novice Rails experience. If there’s a  
users group near you, that’s also a great place to hear of  
opportunities, but make it known that you’re looking. (Even a Java  
or PHP group might have leads for you to pursue.)

> **[RubyNow: Ruby Jobs | Niche Ruby on Rails Jobs Board](https://jobs.rubynow.com/)**
>
> Find Ruby on Rails developers. Post Ruby jobs into the inboxes of active Rails developers today. RubyNow: the trusted Ruby Jobs board since 2005.

> **[We Work Remotely: Remote jobs in design, programming, marketing and more](https://weworkremotely.com)**
>
> Find the most qualified people in the most unexpected places: Hire remote! We Work Remotely is the best place to find and list remote jobs that aren't restricted by commutes or a particular geographic area. Browse thousands of remote work jobs today.

> **[We Work Remotely: Remote jobs in design, programming, marketing and more](https://weworkremotely.com)**
>
> Find the most qualified people in the most unexpected places: Hire remote! We Work Remotely is the best place to find and list remote jobs that aren't restricted by commutes or a particular geographic area. Browse thousands of remote work jobs today.

[http://pragmaticstudio.com/jobs/](http://pragmaticstudio.com/jobs/)

-Rob

Rob B. [http://agileconsultingllc.com](http://agileconsultingllc.com)  
removed\_email\_address@domain.invalid

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<div class="post-metadata">

**Author:** ![surf](https://www.ruby-forum.com/letter_avatar_proxy/v4/letter/s/77aa72/32.png) [@surf](https://www.ruby-forum.com/u/surf)\
**Post date:** [February 1, 2007, 1:16am UTC](https://www.ruby-forum.com/t/what-should-i-ask-for-an-hourly-rate/84039/3 "2007-02-01T01:16:05Z")

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The rule of thumb for working out an hourly rate is to take your current  
yearly salary, or the salary you would like to have, and divide it by  
1000. Thus a annual salary of $93000 per year becomes an hourly rate of  
93 dollars. This is supposed to take into account considerations of sick  
leave, and time off between contracts, as well as some of the costs  
involved in being a private contractor.

If you are running a business with staff costs and other overheads, then  
you’ll need to factor those in to the equation.

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<div class="post-metadata">

**Author:** ![surf](https://www.ruby-forum.com/letter_avatar_proxy/v4/letter/s/77aa72/32.png) [@surf](https://www.ruby-forum.com/u/surf)\
**Post date:** [February 1, 2007, 2:58am UTC](https://www.ruby-forum.com/t/what-should-i-ask-for-an-hourly-rate/84039/4 "2007-02-01T02:58:29Z")

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On Feb 1, 11:16 am, John [removed\_email\_address@domain.invalid](mailto:removed_email_address@domain.invalid) wrote:

> –  
> Posted viahttp://www.ruby-forum.com/.

While this is a valid method for most people, I found it to be a great  
way to limit the amount you can earn - in this case to $93K.

If you are going to ask for an hourly rate make sure you ask enough,  
otherwise you will be a slave for hire. Keep in mind, there is a  
judgment of your abilities according to the rate you charge - the more  
you charge the more experienced and professional you are. Low rates  
attract people who want work done cheaply, but not professionally.

Another way is to try and gauge how much the work is _worth_ to the  
client and charge them accordingly. Sure this is sometimes a harder  
sell, but every client has an idea of how much they want to spend on  
this problem - the time taken to accept delivery is an evil they would  
rather avoid.

If a job is worth $2,000 to the client then charge them that. If you  
have the good fortune of getting it done in 2 days, then best of luck  
to you. What’s more, if you develop libraries as you go you will be  
better setup for the next project (and a Saint if you release them as  
a plugin or gem). Sell them on how quickly you can develop a  
solution, how well it will be tested and how easily changes can be  
made. Be agile and responsive - your client will love you and keep  
coming back.

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<div class="post-metadata">

**Author:** ![surf](https://www.ruby-forum.com/letter_avatar_proxy/v4/letter/s/77aa72/32.png) [@surf](https://www.ruby-forum.com/u/surf)\
**Post date:** [February 1, 2007, 4:12am UTC](https://www.ruby-forum.com/t/what-should-i-ask-for-an-hourly-rate/84039/5 "2007-02-01T04:12:41Z")

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askegg wrote:

> On Feb 1, 11:16 am, John [removed\_email\_address@domain.invalid](mailto:removed_email_address@domain.invalid) wrote:
> 
> > –  
> > Posted viahttp://www.ruby-forum.com/.
> 
> While this is a valid method for most people, I found it to be a great  
> way to limit the amount you can earn - in this case to $93K.

That depends on how successful you are at getting work and retaining it.  
For example if you were able to work an average 40 hour week for 48  
weeks, you’d earn a tad over $178K.

> If you are going to ask for an hourly rate make sure you ask enough,  
> otherwise you will be a slave for hire. Keep in mind, there is a  
> judgment of your abilities according to the rate you charge - the more  
> you charge the more experienced and professional you are. Low rates  
> attract people who want work done cheaply, but not professionally.

Definitely. Unless you are desperate for work, it’s not a good idea to  
undercut yourself. There are plenty of others out there who will do that  
for you.

The caveat here is that when someone is starting out they may need to  
prime the pump a little with a _slightly_ lower rate to build up a  
reputation.

> Another way is to try and gauge how much the work is _worth_ to the  
> client and charge them accordingly. Sure this is sometimes a harder  
> sell, but every client has an idea of how much they want to spend on  
> this problem - the time taken to accept delivery is an evil they would  
> rather avoid.
> 
> If a job is worth $2,000 to the client then charge them that. If you  
> have the good fortune of getting it done in 2 days, then best of luck  
> to you.

That’s good advice. As you indicated, it’s not always easy to get this  
info. They may be trying to save money, and not be as forthcoming with  
all their expectations.

> What’s more, if you develop libraries as you go you will be  
> better setup for the next project (and a Saint if you release them as  
> a plugin or gem). Sell them on how quickly you can develop a  
> solution, how well it will be tested and how easily changes can be  
> made. Be agile and responsive - your client will love you and keep  
> coming back.

True as well, but if there is a contract check the fine print for  
ownership of the source. If the client wants to own the resulting  
sourcecode, it can be a major legal hassle not just for the developer  
but all of his clients who have software that uses the code. That’s a  
sure way to trash your reputation.

Someone just starting out will need to test the waters while they are  
doing so. The divide by 1000 method gives a decent method of estimating  
what they should be ‘worth’ to a client until they have the skills to  
estimate what a job is really worth.

Cheers

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<div class="post-metadata">

**Author:** ![surf](https://www.ruby-forum.com/letter_avatar_proxy/v4/letter/s/77aa72/32.png) [@surf](https://www.ruby-forum.com/u/surf)\
**Post date:** [February 1, 2007, 5:19am UTC](https://www.ruby-forum.com/t/what-should-i-ask-for-an-hourly-rate/84039/6 "2007-02-01T05:19:37Z")

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Good points. I should have done my sums - $178K is great in anyones  
book 🙂

@surf: It’s a scary and empowering thing to go out on your own with  
nothing but some skill and an idea. I wish you all the best.
