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Rates & Client Conflict Conundrum

 
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Adam Verner
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Joined: 04 Jan 2007
Posts: 198
Location: Chicago

PostPosted: Fri Dec 11, 2009 7:45 pm    Post subject: Rates & Client Conflict Conundrum Reply with quote

So, here's the situation, hopefully I can describe it accurately:

I've worked for Client A for 6 months now on many projects for a certain rate, let's call it X.

Recently I've started working for Client B doing similar work, but they pay slightly better than half Client A - call it rate Y. (still not too far from industry standard though) They give quantity...so I did projects for them while not doing anything else.

Client A runs into some kind of situation where they need to outsource a project, and they pick Client B. My voice is one of the samples sent, and of course Client A says "yes, we like him, let's use him!"

So...do I take the gig and work for the same company (technically) for the lower rate? Won't that encourage Client A to always "outsource" since they can get the same voice for less? Is this just a case of "stupid Adam, you should never have worked for the lower rate in the first place!"?

Grrr....
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bobsouer
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Joined: 15 Jul 2006
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Location: Pittsburgh, PA

PostPosted: Fri Dec 11, 2009 11:34 pm    Post subject: Reply with quote

Adam,

By the time Client B finishing billing Client A, the rate may not seem lower to Client A. You don't know what they are going to mark-up.
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Lee Gordon
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Joined: 25 Jul 2008
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PostPosted: Sat Dec 12, 2009 2:48 am    Post subject: Reply with quote

To illustrate Bob's point, I once did some work for a client through a production studio. Then my contact at the studio left there and took the client with him. He hired me for a subsequent job for which I was to bill the client directly and told me to increase my fee by $100, presumably to avoid calling attention to the markup he/they had previously been charging.
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todd ellis
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Joined: 02 Jan 2007
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PostPosted: Sat Dec 12, 2009 5:11 am    Post subject: Reply with quote

you might also mention to client "b" something like "you know, with the volume of work you send me, i give you a discounted rate, right? i'd appreciate it if we kept that confidential" i've been in the same situation, and bob is correct, client "b" is likely to bump the rate from 20% to 200% - and rightly so.
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Bruce
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Joined: 06 Jun 2005
Posts: 7977
Location: Portland, OR

PostPosted: Sat Dec 12, 2009 7:46 am    Post subject: Reply with quote

Good advice above, and no, you weren't stupid to take lower paying work. Work is work. You just got caught up in "one of those things" that ain't your fault.

B
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Drew
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Joined: 27 Sep 2005
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PostPosted: Sat Dec 12, 2009 8:28 am    Post subject: Reply with quote

Same here. Did a large job for a regular client at a lower rate. Their contract ended for their work with the end client. Got an email from them saying the end client really liked my work and will contact me directly for future projects. Here's the nice thing. "I know you offer us a lower rate for volume. Let's keep that between us when they contact you directly, as I'm sure you can negotiate a better pay schedule."
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