Can you come in too high in a negotiation?


It's normal to worry about coming in too high in a billable rate negotiation.

There is some risk that you'll throw out a number that is too far away from a realistic number for the prime.

But, if you take some precautions this risk is low.

Here is what you can do to avoid that situation:

  • Let the prime offer the first number. They will probably be on the low end but at least you'll know whether you're $10/hour apart or $60/hour
  • Do your research. You can look up salaries for comparable roles and use the "Divide by 1000, +/- 20%" method. This should give you a somewhat reasonable range. Some companies also post their LCAT and Prices sheet on the contracts portion of their website.
  • Pitch a rate that's a little higher than what you'd accept. If you'd take $120, pitch $135. If you'd take $150, pitch $170. This gives you wiggle room to offer a lower rate but with the potential to get something better than you'd take. If you're too far apart at this stage it wouldn't have worked out anyway.

There may be occasions when you lose a deal or leave money on the table, but you don't need to get things 100% right. You just need to get a number that you are comfortable or happy with.


If you're interested in learning how to get your first solo 1099 federal sub-contract, check out my book:

Going 1099: How to become a solo federal sub-contractor and gain control of your working life, earn more money and unlock more free time

I'm Dale, the author of Going 1099

Going 1099 is a book that teaches you how to become a solo federal sub-contractor and gain control of your working life, earn more money and unlock more free time. I wrote it because quite a few people have asked me how they can become a 1099. I figured it was best to write a single book that I can send them and that I can share with others who are interested. This newsletter goes out Monday - Friday and covers topics that will help you succeed in starting and maintaining successful 1099 career.

Read more from I'm Dale, the author of Going 1099

Hi all, I've enjoyed writing this newsletter for over a year now, but I've decided to take a hiatus for the time being. There is an extensive archive if you'd like to go back and read the previous ones. As always, if you have 1099 questions, feel free to ping me via e-mail at dale@1099fedhub.com. Good luck to you all! -Dale If you're interested in learning how to get your first solo 1099 federal sub-contract, check out my book: Going 1099: How to become a solo federal sub-contractor and gain...

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