Behind the Scenes: Hourly Rate

Behind the Scenes: Hourly Rate

Sep 07, 2018 | By Matt |


As software craftspeople, we hear it quite often; how did we determine our hourly rate, or why can't we shave just a little off the cost for a client. It's an important discussion to have with any client, ensuring they see our value and what that rate provides.


Higher Rates Benefit Us All

This might sound counterintuitive, but a higher rate actually helps both parties.  Not convinced?

Read the hidden costs you're ignoring by paying a cheaper hourly rate.

Skill Indicator

When as skilled workers, we become more experienced than our more junior peers, we're quicker, better and more adept at accomplishing a task. In order to do more work at a higher quality and avoid less pay, we have to charge more. You can certainly find overpriced examples, but in general the higher the price the higher the quality.

You wouldn't trust someone selling you a Mercedes at a steep discount, so trust your same intuition when engaging with a software partner.

Industry Trends

You don't want to pay and develop your product only to find out that the technology underpinning your entire operation is outdated, misused, misguided, or improperly implemented.

By agreeing to a higher rate, you're allowing us the freedom to explore new industry trends, technologies, techniques, and best practices that are in turn reinvested in your business.

Increased Focus

We're afforded the luxury of focusing on our clients more directly due to the fact that we have the financial freedom to do so. When engaging at a lower rate, most often teams are driven to produce quickly, without focus, and sometimes without caution; economics dictate quantity over quality.

Conversely, we're able to take more time to keep your business goals in mind, ensure we're making the best use of technology, design, and budget to offer laser focus on crafting a solution that better fits your needs.


Written by Matt

Dad, husband, and Founder of Lotus Apps providing Rails and RubyMotion development out of Knoxville TN. Creator of for #ruby devs.
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