How much a SAP freelancer should charge?

In this article we have mention about safety officer and their salary.

The rate  is one if not the most critical part of working as a SAP freelancer. You can’t run away from your experience and your cv and you can have good or less good selling skills. But at the end you will close that deal and secure that contract because your rate is acceptable to the client. You should be prepared to negotiate!

freelancer jobs from home

SAP freelancer consultants make their rate (daily or hourly) in two ways. First they start asking for the market rate. They ask colleague and other SAP Freelancers how much they are charging to clients and ask the same. More experienced SAP freelancers that work as freelancers for a while will ask the same or a bit more than they charged the last client.

So how much should you charge?

Before asking how much colleagues are charging or getting advice from someone else you should think by yourself. If you are starting as freelancer and are leaving your current job then you need to earn more. Be aware that you might work less than 12 months a year, won’t get benefits from the company and will have to pay your own taxes. So, if you were earning 50k a year you should think about asking at least 50k/10 = 5k a month. This is around 250€ ($ or £) a day. If you had 100k/year than we are talking about asking 500 a day. Then add something more and you’ll be earning more money. I would say ask around 300. You should charge what is worth to you and will make you happy. Lower your expectations and everything you get above that will be a bonus.
We know that 300€ is a low rate for a freelancer consultant but with this method you can see how much you have to negotiate and still be happy.
Now ask your colleague how much they get and what they think about it and you can have an idea. Probably you’ll start asking around 400-500 a day depending on the skill and experience you have. Don’t be afraid to start from the bottom.

Different rates for different roles?

Yes. You need to get a full job description with the required tasks, skills, location and duration of the project. If the job requires high responsibility (freelancer roles almost always do!) you should ask more money for the risks you take. But don’t go crazy.
Then you will have the location issue. If the job is in your home town than you don’t need to charge more for expenses. If you are required to travel then you have to consider it so you don’t loose money. Finally we have the duration. It is totally different if a company offers you a 1 year contract or just 3 months. You should also consider the possibility of getting extended and if the project you will be working is schedule to last long time or not. Longer contracts give you guaranty of work for a longer time and you can go with you lower rate.

Negotiate always!

Be prepared to negotiate. Be flexible. Clients will like that and will consider you a good professional who is interested in their project. Obviously you shouldn’t go as low as they want as clients will want to pay as less as possible. When starting a negotiation you should set a minimum price on your mind but ask something more. If the client accepts the higher rate then bingo for you but if he doesn’t you can negotiate and secure the project.

Ask or don’t ask how much they pay?

If you ask clients or agencies how much they want to pay they won’t tell you. Probably they have an idea of their budget or if it is a consultancy they will know for how much they closed the project. The reason they don’t tell you this is because they know how much you want. If you want less than they can pay it is bonus for them. Most of the times you will ask more than they can pay and they will then make you an offer.
What I usually say is it is not the client you says how much the job costs but the electrician who gives a budget! If you need an electrician or a plumber its not you who will tell them how much you will pay for the job but it is them who will tell you how much they charge. Easy!

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