Unsure if I made the right business decision

[facePuncher7]

Gonna have to be vague with some details here but basically:

* Used to work for Big Business Company (BBC)

* Quit, traveled world for a year, settled in Thailand and started freelancing (programmer)

* The work I did with BBC was highly specialized, I'm one of the only 10-15 people in the world with the requisite level of experience in the area they work in

* Given a year of world travel, let me funds get pretty low

* BBC offers me a freelance project, but they haggle me down massively on price. Down to $50 per hour, where I would (should) really charge $140+ per hour.

* They give me a sob story about margins and I say whatever, I needed the cash so did it at $50ph. That project didn't massively intersect my niche anyway.

* They come through with another project, really overlaps my niche, super complex.

* I give them quote at $140ph. After haggling with one of the two BBC guys involved we settle on $70ph with me kicking myself that I've come down so far.

* Several days go by and then I get email from main BBC guy basically saying "I only budgeted $45ph for your time, but I'm a great guy so I'll come up to $47ph"

Now here is where I'm not sure I made the right move, as I'm just really stepping out into business as my own entity (I have a registered company for certain interactions).

What I did was call the bluff and say no, I can't go below my quote of $70ph, take it or leave it.

Now I don't know if these guys actually have the money to accept my quote, BBC is a big (thicc) company so I assume so, but they always play poor and I don't know if it's just their annoying way of trying to make margins.

I'm banking on my worth with this play, I do believe my skills are needed and they won't find them elsewhere easily, let alone at my level and with my internal knowledge of their business.

At the same time I really hope it comes through because I'm low on funds at the moment and it doesn't feel like the right time to have made such a big dick play. Awoke with anxiety about it this morning.

Advice please sherdizzle

*edit* oh yeah - I have bits and pieces of other lower paying work, but it's not reliable just yet. This is the first big chunk in quite some time. A month or so of work at $70ph (hopefully).

 

[Estemachine]

On this life you don't get what you deserve, you get what you negotiate.

Worst comes to worst accept their low ball offer and wait until a better opportunity arrives and take it.

 

[drstrangelov]

You’re not actually negotiating if you’re not willing to walk away from the deal. It’s not a mistake to ask for market value for the work you’re providing. If they can find someone else to do it for less, then you’re out of luck. Otherwise, they’ll come back offering you more money, but tell them to make an official offer in writing this time, that last minute attempt to reduce their rate by 30% reduced the value of their word to nothing.

 

[JabToucher]

What happened within BBC headquarters post operation yewtree?

Any insiders info?

 

[facePuncher7]

You’re not actually negotiating if you’re not willing to walk away from the deal. It’s not a mistake to ask for market value for the work you’re providing. If they can find someone else to do it for less, then you’re out of luck. Otherwise, they’ll come back offering you more money, but tell them to make an official offer in writing this time, that last minute attempt to reduce their rate by 30% reduced the value of their word to nothing.

That is good advice.

This organization is policy driven, I get an official purchase order from them after negotiations.

 

[facePuncher7]

What happened within BBC headquarters post operation yewtree?

Any insiders info?

Eeeeerrr...

 

[JabToucher]

Eeeeerrr...

*inserts Mrs Doyle "go on, go on, go on" gif.

 

[genecop]

You did the right thing, if you don’t know and respect your value no one will. But you also need to move in other circles, can’t have all your eggs in one basket...Network ASAP

 

[Oeshon]

You have made one of the biggest errors you can make.

Never let 1 account be worth more than 30% of your revenue.

It doesn't matter how good the account is, you will be put in a position of weakness.

If this was 10% of your revenue, you could easily hold strong at your preferred rates. They know they have you by the balls though, so why wouldn't they push you down?

 

[facePuncher7]

You did the right thing, if you don’t know and respect your value no one will. But you also need to move in other circles, can’t have all your eggs in one basket...Network ASAP

I've just started doing that a couple of weeks ago.

I'm getting quite a bit of interest but nothing big locked in yet. Doing a few smaller casual projects outside my niche atm, $30-50ph kinda gigs.

 

[MikeMcMann]

First off refamiliarize yourself with your Market so you know exactly what today's going rate for your skills should be.

Then it all depends on each sided current needs.

If you need them more than they need you, you take whatever you can get while looking elsewhere. They get very little loyalty.

If you dont need them, then hold out and serve if the step up knowing you are ok if they do not.

 

[Jake the Muss]

You already messed up by agreeing to $70, and then admitting that your walk-away point was $90.

The strongest position in negotiating is the ability to say "no" and mean it.

In order to be in a position to say no, a person must know their walk-away point and have a moderately strong BATNA (Best Alternative To Non-Agreement).

Which means you need to have one or more alternatives already in play.

Don't worry about the outcome with BBC. Start working on your alternatives.

Believe in the notion that you are truly as rare and valuable as you think you are, and give them time to miss you.

Since you are living in a cheap cost of living area like Thailand, you can afford to take some easy low paying jobs in the meantime.

 

[facePuncher7]

You have made one of the biggest errors you can make.

Never let 1 account be worth more than 30% of your revenue.

It doesn't matter how good the account is, you will be put in a position of weakness.

If this was 10% of your revenue, you could easily hold strong at your preferred rates. They know they have you by the balls though, so why wouldn't they push you down?

The reason is because I haven't felt the need to push for new clients until now.

Suddenly the need has become apparent and I'm networking and getting a lot of interest. Have sent over over $130k in quotes in the first 2-3 weeks of networking.

The future looks good for me work-wise, I just started with my former employer as the first and only client.

 

[MikeMcMann]

Also if there truly are only a handful of guys with your niche skill/knowledge/experience I would track them all down and make sure we were all communicating and sharing data. It benefits us all to know what one another gets paid per job, per region, contact or salary.

 

[SalvadorAllende]

I honestly think you have to take what you can right now and work on building your business outside of BBC.

As a few users already said, find another clients and improve your position in negotiations.

It seems like you have been already doing that so you will be fine.

 

[facePuncher7]

You already messed up by agreeing to $70, and then admitting that your walk-away point was $90.

The strongest position in negotiating is the ability to say "no" and mean it.

In order to be in a position to say no, a person must know their walk-away point and have a moderately strong BATNA (Best Alternative To Non-Agreement).

Which means you need to have one or more alternatives already in play.

Don't worry about the outcome with BBC. Start working on your alternatives.

Believe in the notion that you are truly as rare and valuable as you think you are, and give them time to miss you.

Since you are living in a cheap cost of living area like Thailand, you can afford to take some easy low paying jobs in the meantime.

The $90 thing was a fuck up, because I'm converting currencies in my head.

$70usd was the number I agreed to.

 

[SalvadorAllende]

Also if there truly are only a handful of guys with your niche skill/knowledge/experience I would track them all down and make sure we were all communicating and sharing data. It benefits us all to know what one another gets paid per job, per region, contact or salary.

Maybe there is only a handful of guys doing that because there is only so many of that kind of work to do. Does not look like TS is swimming in offers anyways.

 

[Oeshon]

The reason is because I haven't felt the need to push for new clients until now.

Suddenly the need has become apparent and I'm networking and getting a lot of interest. Have sent over over $130k in quotes in the first 2-3 weeks of networking.

The future looks good for me work-wise, I just started with my former employer as the first and only client.

Could have been a lot worse. A lot of people get s big account and then hire/expand to handle it. Problem happens when that account doesn't stick around and then you are left holding your nuts.

You HAVE to diversify for risk management and to maintain leverage in negotiations. You are finding out the hard way, but the less painful way.

 

[MikeMcMann]

Maybe there is only a handful of guys doing that because there is only so many of that kind of work to do. Does not look like TS is swimming in offers anyways.

Sure but that only makes the skill that much more valuable if the practitioners need to somehow gain experience and skills in an area where it is very difficult to do so.

 

[Jake the Muss]

The $90 thing was a fuck up, because I'm converting currencies in my head.

$70usd was the number I agreed to.

Yeah well, lesson learned.

Even if you realized that mistake, you should've stood firm at $70, because trying to negotiate back up without stating any additional value made your position look weak. They smelled blood, and tried to push you below your previous walk-away point.

Don't take this offer. Take some cheap paying jobs, eat street food if you must, and either wait for them to come correct or find another high paying job.