How much discount for long term job?

[drdesigns]

Hi Everyone! I have been reading this forum for a while, and have learned so much. I have been freelancing for about three years, have a steady group of clients that I assist from my home office.

Last week I was offered the opportunity to work in-house (50 miles total drive) for a two month period - November and December - 30 hours a week. Instead of asking me what my fees would be, they told me what they were willing to pay. Unfortunately what they are offering is a 60% discount on my normal fee. This seems very low. I was thinking more in the lines of a 25% discount.

This is a very good customer and I want to be sure we work this out, as I know they will continue to use me for design work. It's good steady work and I don't want to jeopardize it.

How do I determine a fair discount? If anyone has experience with this, I would be very appreciative.

[idaho]

Sounds like their thinking is that the 60% discount a desk fee to cover your butt-space in their office. You shouldn't have to sell yourself for so much less. Basically they are charging you rent to work in their offices.

Things to think about:

1) Will you lose this client if you don't take the position?

2) By being inhouse with this client, how much time will it take away from your being able to work for your other clients? Are you risking losing any other clients? Will you be able to do work for your other clients from their office?

3) Are they going to supply you with equipment or just butt-space? If you have to supply your own equipment, INSIST that you have an office with a door that locks or your stuff will disappear. They may be a good customer, but that doesn't mean that their employees won't rob you blind.

4) If they are going to supply the equipment and software, you will probably lose them as a client once the job is done because they will have everything they need to start having a secretary do the same thing you are. I've had it happen to me before.

5) Don't let them have someone sit and watch you while you work. You'd just be training your replacement.

6) Don't forget gas prices are ridiculous!

My suggestion is to continue working from home. but if you do work from their place, don't discount your work so much. I wouldn't go more than a 15% discount. Tell them that with high gas prices and having to provide your own equipment, that you can't take that big of a hit.

[drdesigns]

Thanks for the reply!

1) I could lose future work. Once they find someone to do this in-house work, then they will have another person trained who they could divvy the work up with. I would prefer to be the only "go to" person.

2) I will not have much time to do work for other clients if I take this job. I have several jobs in-house now that I am going to have to try and wind up before the end of the month. Which means, if the jobs are not complete, my other clients will have to finish themselves.

3) This will be using their equipment.

4) Not a problem. I will be taking an art directors place who will be on maternity leave.

5) Gas prices are terrible now.

I really like this client and we work great together. I think I can negotiate with them. I'm thinking of splitting the difference from their offer and what I had planned on charging. This would still be less than what I want, but I can live with it. I was also wondering if I offer to make this concession maybe telling them I am going up on my rates by $5 per hour next year.

Any creative negotiation ideas are welcome.