Retired. What to charge for programming from home?

[5 axis Fidia guy]

Because you pay someone $150/hour only when you need them instead of $30/hour + benefits 40some hours a week, 52 weeks a year.

If he already was working there, and retired, I can only assume he was full time and needed full time.

 

[Areo Defense]

FYI All, the OP is not talking about contract work at all. Everyone and their uncle loves to toss around contract rates as a talking point but his situation is clearly not contract.

@gcodeguy
If you can negotiate with them, I would try hard to charge by time, as in time and material, but they sound too cheap for that. I agree with the others that have said bid each job. If you bid it attractively you can keep them happy and potentially have more steady work. Also, as a sole proprietor, you don't have to worry as much as you would paying a partner or staff.

 

[EMTech]

FYI All, the OP is not talking about contract work at all. Everyone and their uncle loves to toss around contract rates as a talking point but his situation is clearly not contract.

@gcodeguy
If you can negotiate with them, I would try hard to charge by time, as in time and material, but they sound too cheap for that. I agree with the others that have said bid each job. If you bid it attractively you can keep them happy and potentially have more steady work. Also, as a sole proprietor, you don't have to worry as much as you would paying a partner or staff.

I am curious why you differentiate this situation from contract programming. Is it because it is work for his previous employer?

 

[AmericanMaker]

Because you pay someone $150/hour only when you need them instead of $30/hour + benefits 40some hours a week, 52 weeks a year.

On top of the hourly pay and benefits aren't there also employee tax expenses that the business is responsible for? Would a $30/hour employee actually be closer to $45 to $50 per hour after the benefits and tax expenses? I don't have employees so I don't know the answer to this, that is why I ask.

Depending on where OP lives and his shops capabilities, I think $70 to $100 per hour plus materials could be a great rate. If OP is good at time estimates, I suppose a flat rate plus materials would be more appealing to the customer.

 

[LOTT]

He's talking about contract programming, where is this "material" coming from? Did I miss something?

I also suspect offering a upfront price per job (not lising an hourly rate) might be more palatable from what you've described.

 

[Orange Vise]

Because you pay someone $150/hour only when you need them instead of $30/hour + benefits 40some hours a week, 52 weeks a year.

+1

This is huge.

Furthermore, a contractor is paid for deliverables, i.e. deliver or don't get paid. Not only does this incentivize him to complete the project properly and on time, but it prevents the customer (you) from getting hosed. Even with progress payments, there can be progress deliverables.

Some FTEs take their positions for granted and subscribe to the premise of overpromising and underdelivering, often in the form of badly blown deadlines.

 

[AmericanMaker]

He's talking about contract programming, where is this "material" coming from? Did I miss something?

I probably misunderstood and made the incorrect assumption that as a contractor he would provide the materials too. I'm new to this and still learning. It sounds like that may not be how it works.

 

[mhajicek]

I probably misunderstood and made the incorrect assumption that as a contractor he would provide the materials too. I'm new to this and still learning. It sounds like that may not be how it works.

The distinction is between a contract manufacturer and a contract programmer.

 

[Areo Defense]

I am curious why you differentiate this situation from contract programming. Is it because it is work for his previous employer?

From my experience and what I have seen in in my area, contract work involves a bi-lateral, legally binding contract which is typically at a much higher comp rate than permanent, contractor and business rates. Also contract usually has adjustable per diem allocations as part of the comp, which many people set high, for tax purposes I assume. Although I haven't been involved in contract work for a long time so this may be out of date info. Also, around here, contractors typically get compensated anywhere from the same as permanent employees, and higher, but usually not as high as contract work. The higher comp of a sole proprietor entity or 1099 covers the extra taxes, assuming you negotiate well enough. I recommend a really good tax person to not only prepare your taxes, but to also help you make decisions up front.

 

[michiganbuck]

Their software. Same employer I worked almost 38 years for. Gave a two week notice about 18-20 years ago, but the 'old man' made me feel so bad that I stayed. Would have been programming 2 new lathes and learning vertical mills.

Was promised I could learn vertical mills where I was working. Never happened. Would have been a bit hard anyway as I was responible for programming 22 lathes. Plus we were always short-handed so I did quite a few set-ups. Also set-up and ran off small reworks or small orders.

Actually got screwed as they took me off salary and paid me hourly. I did not ask to go to hourly, but that is how the other job would have been paying me. (And I was told at the other place that I could work as many hours as I wanted.) Then when 2008 hit, I took a 25% cut in pay while salaried kept their pay and went from 47.5 hours a week to a 40 hour week. A huge hourly increase for them while the rest of us got the shaft.

A darn shame but no matter how good or how much you mane for some employers
you still get shafted at times.