Never Negotiate Hourly Rates: What to Do Instead
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Never Negotiate Hourly Rates: What to Do Instead
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Are you comparing external software engineers or agencies by their hourly rates? In this episode, I explain why that can be one of the most expensive mistakes in software buying.
A lower rate can change the staffing mix, increase the number of billed hours, and add uncertainty that is invisible in the first offer. I have worked on both sides - as a freelancer and consultant, and as the manager hiring external teams - so I break down what rate negotiations actually change.
You will learn:
- Why the lowest hourly rate can produce the highest final cost
- What happens when an agency has to recalculate after a discount
- When hourly comparisons are valid and when they are fiction
- Why providers charge for uncertainty and difficult collaboration
- The body-lease exception, and how to negotiate it intelligently
- What to evaluate instead of just the hourly rate
Code Meets Business is where I explain technology, product, and business without the jargon wall or corporate theater.
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