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I think it's partly because of blurry line between software products and programming services.

Many of the software products, proprietary or open source offer massive functionality for very low cost but this is of course because the development costs have been aggregated across many customers.

For example , I was asked to build an online customer management system for someone on a budget. So I googled around for open source solutions to the problem , found a few that fitted their requirements and showed them to the client.

Once they found one they liked, I FTPd the PHP upto their server, setup mysql and did the basic configuration for them. I then pointed them to the URL for the system, gave them some basic instruction and charged them $25 for the hour.

They were over the moon with that, since it was so quick and cheap.

Of course later they come back and say "hmm, this system is good but I wish there was an extra field here that did this and this part should work slightly differently".

So I said "hmm, ok. This is probably 5 hours work so except to pay around $125". At which point they said "What?! This is just a few small changes, how come the price is so much higher?! The system is open source, so you can just make these changes easily". This then puts you on the defensive as you have to justify that in fact to do these changes will involve reading a ton of someone elses code , finding the correct places to change things and testing that everything won't break.

Now , if they had paid $1000 for the original system (probably a fair price for the amount of actual functionality it enabled for them) then the $125 would look more reasonable.

The amount of value that they gained for the $25 was so high that you have their expectations have been set unreasonably high.



Just so you know, semiskilled housecleaners charge a lot more than $25 an hour. Car mechanics $60-$120 an hour. Plumbers $80-$120 an hour. When you charge $25 total for a trip to his facility, the time to understand his business problem, and an hour of setting up software for him, you are telling the client "I have no skills and am not worthy of any respect. Please abuse me."


Well I didn't have to go onsite for this, or I would have definitely charged more. Though I would say that installing PHP scripts to web hosts is closer to semi-skilled labour since it can be (and frequently is) done by teenagers.

Plumbing or mechanicing have a higher barrier to entry since you usually need certifications and a significant outlay for tools/transport/premesis etc.


You'd be much better off basing your billing rate on the value that you're providing to the customer, rather than the cost/time that it takes you. This is a very basic business skill, but it's not always apparent to those of us who just like to build things, whether we get paid or not.

Try to get comfortable with the idea that you deserve to be paid very well for your work. (It's something I've had to do.) In my case, it was very uncomfortable to send that first message with my new higher rate. But I spelled out the value of the work I was proposing (which had obvious benefit for the client, but also bolstered my own mental fortitude), and the client happily agreed. And now the client is "educated" as to what this type of thing is actually worth. :)

Good luck!


The main value to the customer wasn't ftp'ing the files over, it was the technical understanding to find a script of value, make sure it was written properly, documented, etc. Not to mention the time you took to understand their issues.




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