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by liquidcool 3113 days ago
Wow, 5X! I have a small consultancy and most engineers are surprised to learn that 2X is typical. I do know some of the large management consulting firms have very high margins, especially on junior programmers, which you're clearly not. Specialist knowledge will also raise rates. But I suspect they have high churn with abuse like that.

Do they have an awesome sales/marketing team, or are those rates typical for your industry? If it's typical, you might consider freelancing. Or finding a small consultancy that will treat you better and take care of sales for you.

I'll say I was once unhappy and asked to be laid off. They told me no, essentially because I was a cash cow. You think your bargaining position is tough, but if your utilization rate is 100% and their margin is 80%, if you leave they are guaranteed to lose at least 160 billable hours (up to 480) while they replace you. I'm assuming you're not in gaming or a glamour industry where there is a line out the door to replace you.

1 comments

I'm far from an expert, I'd say intermediate. There are people I work with who know far more than I do.

The company specializes in a couple of frameworks so yes they sell expertise in that sense, and they've done a lot of work developing the brand.

But yes, there are more jobs than people to fill them, which is pretty much any software development job that isn't gaming related or movie related. My company always has open software dev positions and they can't fill them fast enough despite being very well known in the industry.

What domain is your consultancy in?

Traditionally it's been Java web application development and ecommerce, and I've subcontracted a few times when friends needed help.

But now I'm currently focusing more on staffing, since almost nobody technical is in recruiting, hence I'm a no brainer to hiring managers. Long term, I'll funnel recruiting revenue into products.