[deadbea7]

How do you charge if onsite presence is required for an engagement? This could either be due to a client requirement or you need to do interviews with developers for an architecture/code review. Should you add a separate line item for travel + lodging expenses or just bundle it together with the consulting rate? I feel like you're at a disadvantage if the client can see that you're more expensive compared to local talent because of the added travel expense, especially if you're coming into a place with plenty of competition, such as the valley.

[ErrantX]

Always charge expenses.

Of course, that depends on the expense. Generally I'd say if you need to overnight then it is an expense to charge for - if you're driving for an hour then definitely don't :) (in the UK we can get tax relief for mileage in relation to our business, so I generally don't charge for travel if I have to drive less than 3 hours - otherwise I end up being "paid" twice :D). Taking the piss with expenses (one place I worked hired an consultant analyst who literally charged for everything - including the 30p it cost him to use the toilet at the train station) is as bad as not charging them.

If they want you because you bring value they will happily pay this cost. On the other hand if they are put off by this added fee then they are probably not the sort of client you want - especially as those costs are probably a small portion of what they are paying you for a days work!

On the other hand; if you soak up expenses to get that contract you are a) in the mindset of letting them set the rate (even if they never knew about it) and b) eating into your profits. Neither is a good situation to be in (next time they might want you all week, and that can get expensive fast).

However; I don't know about your situation, but if you don't live in the valley why are you trying to compete in the market there? I live in the countryside in the UK and used to believe my main market would always be London (~3 1/2 hours away by car, less by train). I've learned this is nonsense, and even the nearest towns to me have LOTS of developer work available.

You might also think that being out of the hub means less money. I've also found this to be untrue in practice, because no one works out here (they are all focusing on the big cities). Desperation for quality talent means that often, more money is on the table.

[patio11]

"I'll follow your standard procedures for expensing business travel." (Hat tip for Thomas -- this line has totally resolved every discussion I've ever had about this issue.) nYour more desirable clients do this all the time. At many places it is budgeted out of an entirely different pot of money than your salary.

[adrianhoward]

That's interesting. I've been playing with not charging expenses and adding an appropriately sized chunk on my overall price. Generally this seems to go down well with some variation of a "neither of us want to waste time arguing over what my max meal bill should be" line.

I like avoiding two separate sets of price negotiations.

[mgkimsal]

For projects where I travel to a customer, I've switched to an all-inclusive day rate. However...

I quoted a project which I (thankfully) didn't get, based on the person I was talking to being in SC (few hours drive or short flight). Turned out the project would be onsite in North Dakota, which was a $1200 flight.

That was a lesson learned :)

Other than that, I still am primarily hourly, because I have multiple ongoing projects that don't lend themselves to 'day rate' work. Newer stuff I take on next year will likely be 'day rate' based, with travel and hotel expenses outside a short driving radius line-itemed.