[gt2]

Much larger discount for early payment than I've heard of.

At this large of discount doesn't it sound like the original rate is just obviously marked up to account for this offer?

Related, but wouldn't this lose potential clients that think the rate is too high, unless/until you quickly explain there's a discount for early payment or without their being confident that they will always be able to take you up on that offer?

[chrisbennet]

Yes, it is a much larger discount than normal. In reality it is a disguised punishment for paying late but cauched in nicer terms. The bill paying arm of a companyee prefers to effectively borrow money from people they owe for 30 days. It isn't because they can't pay promptly. The $50hr difference changes that calculus for them. I did have a client that couldn't get its act together and pay promptly and I was actually happy to get paid late - at the higher rate.

As for the rate, I'm a software developer with a skill set that, while not in high demand, is rare enough to let me charge $20 more than I was being billed out at 10 years ago (of which I would get half).

As far a losing clients based on the rate: It hasn't happened yet but if it did, that would be a good thing. A client who can't appreciate/profit from the value I bring to the table is a client I don't want. I just don't want to work for a client I can't make happy. That just doesn't do anyone any good and since my reputation is livelihood, I actually can't afford to make unhappy customers.

[arkitaip]

Maybe the rate is marked up but I'll be damned if that's not a great cheap tactic to really incentivize people to pay on time.