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.

Want the full playbook? Check out Going 1099.