Consulting price suggestions

Question

In a few days I'll be meeting with the owner and a few others of a small business. At this meeting, I'll be discussing their website, specifically how I would plan to improve it. I have already had a few discussions with employees at this company, so I have a good idea about what they like/dislike about the site now, as well as a few key new features they want.

If the owner likes what I have to say, the topic of compensation is bound to come up. I'm fresh out of college, and this'll be my first major position. I've done a few websites for a few different people in the past, but by far nothing of this magnitude.

A few other details:

• The previous maintainer of the site has left the company (I have yet to hear a reason why...)
• Right now, small updates are being done by one of the techs (it's an auto shop, he just happens to know a little php), but his 'free time' is very small, so the site has been falling into disrepair recently.
• Multiple people (including the above mentioned person) have told me that the code base is a 'mess'. So it's not just the site's external appearance that needs a facelift, it's the behind-the-scenes part as well, so that updating the site in the future is easier.

When discussing compensation, it's already been hinted at that there are two (possibly others, as well) different paths that can be taken: consultant or full time. They don't really have a preference, but I'll need to have some numbers ready for both. It has also been hinted at that, because it's a small company, all the full time employees do a little of everything, which means I would almost certainly handle the occational sales call (I have several years retail experience, so that doesn't bother me, but it might factor into wages).

(if it matters) This is in the Detroit Metro area.

I'd love to hear what you guys think about this. Like I said, I'm pretty new to this, so I have very little ideas at all as to what 'fair' prices would be, for either contracting or full-time.

Answer 1

Rates are based on experience and what you think you are worth. If you are new to programming, you might charge less as you don't have the experience, nor can you work as efficiently as someone who earns $85/hr as a professional programmer. In a fulltime job, the employer should make you an offer. If they ask you what you want, ask for more than you think you can get and negotiate.

When you set your rates for consulting, and estimate project scope/timing, account for all your expenses, including rent, bills, etc. and make sure that you are earning enough to take care of yourself.

You might also try salary.com to get salary medians for your area.

Incidentally a PHP developer is likely to be paid less than a C++ developer. With PHP, there is a lot of competition from psuedo-programmers who know the syntax but don't understand programming theory. If you know how to write more than just the code itself, but understand engineering, you can charge more, because your code will be that much more robust.

Answer 2

Considering you are pretty green out of college, what you should consider is, are you at this point ready to take the responsibilities of being an independant contractor. You will make more money independent, but it will require you figure out what taxes you need to pay, and when to pay them. At your age, you could probably get away with pretty inexpensive health insurance, but only you know your requirements there.

As a full time employee, you can pretty much sit back and collect your paycheck since you aren't running a business you are working for one.

You need to determine what your requirements are, what are your monthly expenses, and how much do you need to cover those. You should also consider if the experience you are going to gain will be beneficial in the long run, and if you will have fun in your position. In some ways, especially early on in your career, this is more important than salary.

There are also sites on the internet, such as Salary.com that can help you determine what salary you might expect. You should also consider that with an AutoShop, the website is marketing, and probably not a source of income for them. The budget for the position is probably low. They want to spend their money on good auto techs, and a real talented web developer is probably lower on the list.

You might want to consider just being independent so you can find other work and get more varied experience quicker. Or you might want to take the full time position so you have a steady income.

Answer 3

Some thoughts off of the top of my head:

• In a crappy economy, a full-time job opportunity is not something to turn down lightly.
  • Contractors are often easier to get rid of than full-time employees.
  • You can always leave a crappy job, but landing one is usually much harder than you anticipate.
• As you are fresh out of college, you need all the "real world" experience you can get to fill out that resume.
• Every bit of code you will ever inherit will be a mess, to one degree or another.
• Being a Jack-of-all-Trades is par for the course with small companies, but can serve you well (especially early in your career) by broadening your skillset and providing you with more keywords for your resume. It also allows you to get a feel for what you don't want to do again.
• As filmjbrandon said, check some online resources for comparable salaries in your area and adjust accordingly for your skill level.

Answer 4

When I was fresh out of college I had a heck of a time finding work and eventually took a part time job for a company under very similar circumstances. There is a good chance you will really be able to shine early on but it's highly likely the job will bore you in a year or maybe less.

Ultimately, do you see yourself in this job in 2-3 years? If you don't you might consider the contracting angle then it's a little easier to transition into a role where you are doing part time consulting for them after you get a full time job elsewhere.

The other thing is as a contracting position you can probably ask for a bit more money. He has fewer expenses in maintaining a contract employee.

I'm not sure about exact wage ranges you can expect. It seems to me that PHP programmers coming out of college or without a lot of experience are pretty easy to come by so I wouldn't expect a very high wage. You are probably more familiar with wages in your area but around here (Central CA) I would expect that position to pay $15-20/ hour on payroll or $25-30/ hour as a contract position.

Answer 5

Nilamo, I don't know you or this company, but based on what you've said, and my experience; I'd pass on this. This sounds like a dead end job going no where.

If you must do it, take the shortest contract possible and charge a lot so they don't waste your time sweeping the garage. I'd suggest giving a fixed price quote, but based on your limited experience, this is very risky.

The only way I'd suggest you take this, is if working at a company like this is what you want to do long term. If this industry is your passion then go for it, otherwise pass.

I'm not trying to sound pessimistic, but this job and experience will determine your next ... I think this is a bad idea.

Good luck.

Answer 6

1. An excellent article on consulting contracts.
2. Steve Pavlina on Why You Should Never Get a Job