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General Talk: Working with American client from UK

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    • CommentAuthorRob
    • CommentTimeNov 21st 2008
     
    Hey all, a little bit of advice needed.

    I'm negotiating a contract with a client at the moment, my only problem is that he is based in America where as i'm based in the UK.

    This shouldn't be too much of a problem with email contact. However i'm a little unsure as to what to charge.

    A couple of weeks ago when he first contacted me, I was looking to charge around $25 an hour, however now the dollar has risen against the pound it seems like I could except $20 or maybe even less.

    But i've no idea how this is going to change in the future, it feels unfair on him to ask for a set amount in pounds as he'll struggle to know how much he's paying me from month to month in dollars, but at the same time, it's unfair on me as I could end up undercutting myself if the dollar weakens (or the pound strengthens) again plus the obvious thing that i'll have no idea how much i'll be earning from month to month.

    Also, I don't know how prices in America differ to here, I could easily charge £10-£20 an hour for what he's asking here, what sort of price does your average web developer charge in America?

    Based on what's needed I was going to charge around £13 an hour. A month ago this would have been $25 now its $19.50, what will it be next month? God knows.

    If I ask for $19 and the pound strengthens again I could end up earning £10 an hour, that's 25% less than what I was expecting and i'd have to go through the trouble of asking for more or just bite my lip and tighten my belt.

    I'm sure there must be some kind of solution, an algorithm that could be put together to make sure it's always fair on both of us or something.

    But yeah, anyone got any advice for the best way to go about this sort of thing?
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      CommentAuthorSean
    • CommentTimeNov 21st 2008
     
    The value of the US dollar is always going up and down. It's really hard to keep up with it, especially with how the economy is going here in the US.

    I would suggest that you just agree on a set price, in either US or UK funds, example $25.00 USD and stick with it.

    If/when the value goes up or down, either person will either come out a little ahead or a little under... but if you work quickly on your project, it should work out good for everyone involved.
    • CommentAuthorainslie
    • CommentTimeNov 21st 2008
     
    I think you have to work out what you want and negotiate with that in mind.

    If you want £13 an hour ask for that or the equivalent $ at whatever the exchange rate at the time.

    If the client doesn't like that then you may have to compromise.

    Remember though that you can win or lose with the exchange rate so it may work both ways.
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      CommentAuthorSean
    • CommentTimeNov 21st 2008
     
    Posted By: ainslieRemember though that you can win or lose with the exchange rate so it may work both ways.

    That was exactly my point. Great minds think alike bakie
    • CommentAuthorainslie
    • CommentTimeNov 21st 2008
     
    Indeed bakie
    • CommentAuthorsquirrelnmoose
    • CommentTimeNov 21st 2008 edited by squirrelnmoose on the 21st November 2008 at 22:48:44 EST
     
    Your price should be based on what you need to sustain a business in your location.
    Also you can charge them in GBP and let them worry about the exchange. Sounds like a good case to have an pay agreement like half at start and half at completion.

    With the conversion Google is your friend. Just put in the search box what you want to convert.
    25 USD in GBP
    or
    16.9 GBP in USD

    Of course they don't guarantee the conversion rate, but this should be able to give you an idea.

    If you want to try hourly, a US college kid may charge next to nothing to get some experience and client base while I saw a rate for a designer today of $80/hour.
    • CommentAuthorRob
    • CommentTimeNov 22nd 2008
     
    Thanks for the tips, although what makes this more difficult is the fact that this is a long term project not a one off, which could see me doing work for years (obviously things change, but there isn't a set time limit on it, hence why i'm looking for payment by the hour rather than a one off).

    So there's no real option of getting it done quickly before the currencies fluctuate too much.
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      CommentAuthorSean
    • CommentTimeNov 22nd 2008
     
    @Rob: Set an amount now and have a term of condition in the contract that states if the value of the dollar goes below or above a certain amount within X months, you can renegotiate the agreement.
    •  
      CommentAuthoricyone
    • CommentTimeNov 22nd 2008 edited by icyone on the 22nd November 2008 at 20:11:55 EST
     
    We will be back on track in no time, so it will be above...Crossing my fingers and currently eating lots of ramein noodles
    • CommentAuthorbluecafe
    • CommentTimeNov 23rd 2008 edited by bluecafe on the 23rd November 2008 at 03:35:25 EST
     
    Keep in mind that you will never get the exchange rates the currency converters in the internet are quoting (usually you will get less). If at all look at the paypal currency converter (there are two quotes one for buying, one for selling ... you will always get the worse! wink). In addition paypal will charge a foreign currency fee. I think with $25 you will be on the safe side.

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