There's lowball, and then there's LOWBALL

February 4, 2016 2:58 PM

I am a freelancer who usually works on 6-12 month contracts. Today I received an offer for a lengthy project that was priced at about 10% of the going rate. I absolutely cannot take a project at that rate and would typically just decline nicely. But I sincerely believe there has been a mistake somewhere along the line. I don't want to turn down a great job because someone somewhere misplaced a comma or misread a contract form. What is the most diplomatic way for me to try and get to the bottom of this?

Relevant details:

-The contact person has mentioned the rate twice now, suggesting it's not a simple typo. This person, at least, believes the low rate to be the correct one.

-The position is 8 months, absolutely full time. I have been given a detailed schedule showing an extremely heavy workload. It's not a case of having sporadic work throughout the contract.

-I have worked for this client before and been compensated at the going rate. Moreover, they are highly freelancer-reliant. It's not a case of a company just having no idea what freelancers make.

-The initial email was pretty unclear and confused on a lot of levels.

-The whole-project payment is virtually identical to the MONTHLY rate this client paid me for a similar project in the past, making me think that someone was trying to decipher my previous contracts for a rate and misunderstood them.

-Finally, I like this client a lot. I really don't want to alienate them, even if I do have to turn down this specific work.

For some reason I'm freezing up on how to ask about the rate without in some way insulting the client--either by implying they can't read their own contracts or by pointing out that their offer was kind of insane. But I feel like I have to say something. Can I just say, outright, "you know, that's a pretty heavy time commitment given the rate of $x, is that definitely the final offer?"

Any ideas on how to word this? Ask A Manager had a lot of tips for negotiating lowball offers but this doesn't seem like a straightforward "negotiation" problem, exactly.

Thanks, MeFi!

posted by We put our faith in Blast Hardcheese to Work & Money (25 answers total)

I'd just let them know that you wouldn't be able to take that project for what they're offering, but mention that the rate seems unusually low, so they might want to check if it's an error.
posted by aubilenon at 3:06 PM on February 4, 2016 [20 favorites]

"Hi [or salutation of appropriate formality level].

This project sounds really great, but $X is actually my monthly rate. I'm very interested in [appropriate verb/noun/whatever], please let me know if you would like to move forward with this.

Thanks,

B. Hardcheese"
posted by jeather at 3:07 PM on February 4, 2016 [58 favorites]

I think addressing it directly but politely is the only way to go. Your phrasing seems fine to me.
posted by Toddbert at 3:08 PM on February 4, 2016 [2 favorites]

Well, I'd just say that the offer just isn't in the right range for you, because it's what you usually charge for one month, and the assignment is eight months and has a much heavier workload. So, you're sorry you can't pick this one up, but thanks so much for asking.
posted by tel3path at 3:08 PM on February 4, 2016

For some reason I'm freezing up on how to ask about the rate without in some way insulting the client--either by implying they can't read their own contracts or by pointing out that their offer was kind of insane.

You don't have to imply that they are incapable of reading contracts, or that the offer is insane. It's not insulting to suggest that an honest misunderstanding occurred somewhere along the line, which is the most charitable interpretation here. Go with that. And the fact that you've done work for this client before gives you an ideal way to bring it up.

"Dear ContactPerson,

I've done work for YourCompany in the past, most recently [insert details] at a rate of $X per month. However, your offer specifies $Y for the entire 8-month period. Is it possible that there was a miscommunication somewhere along the line? Based on my past work for you, payment of $8X would be typical for the entire contract period.

Sincerely,
WPOFIBH"

("$8X" doesn't have to be exactly that amount; bump it up a bit if circumstances warrant.)
posted by DevilsAdvocate at 3:13 PM on February 4, 2016 [35 favorites]

Thank you kindly for the offer, as Company is one of our preferred clients I am of course interested. However, one small note, there appears to be an error in the proposed rate. In previous contracts with Company, $X was the monthly rate, not the total contract value. Please kindly check. If offering $X per month, I would be happy to discuss once revised contract is received. If not, thanks for your consideration, but we must politely decline. Best Regards.
posted by lizbunny at 3:14 PM on February 4, 2016 [12 favorites]

I think you either say straight out "This rate is not in the right ballpark. I've loved working for you in the past but I can't make the numbers work for this one." or you go the "I'm not sure if I misunderstood you, my going rate is approximately $RANGE and this seems to be 10% of $RANGE. Has there been some misunderstanding? I totally understand if you don't have more to spend on this project, but I won't be able to accept this gig if this pricing is correct. Please let me know if there's anything we need to discuss further."
posted by jessamyn at 3:15 PM on February 4, 2016 [3 favorites]

Best answer: I would give them an out so they can come back and say it was a mistake. "I really like this project and would love to accept it, but I am not sure if the offer was for my monthly rate or total for the project. It looks like the monthly rate, but I want to clarify that before I accept."
posted by AugustWest at 3:15 PM on February 4, 2016 [9 favorites]

I would approach it by suggesting it's a mistake, but in a neutral, non-blamey sounding way. If there's any way you can claim the confusion as your own, do that. The fact that you were previously paid that rate for a month instead of eight months gives you the perfect in to do this.

Something like - "I'm wondering if there might have been a miscommunication somewhere." "Sorry, perhaps I'm reading something wrong -- I'm a little confused by the suggested rate." "I'm wondering about the compensation offered -- can we revisit that?" "Maybe the misunderstanding is mine but..." Etc. And, stress that you loved working with them before and would be very happy to do so again.
posted by the turtle's teeth at 3:17 PM on February 4, 2016 [2 favorites]

"Thanks for all the information! I wonder if your rate quote is in error? I ask because it appears to be about 10% the current going rate. I definitely could not accept this offer at that rate, but have a feeling I may be looking at a typo. I look forward to hearing back from you."
posted by bearwife at 3:19 PM on February 4, 2016

Someone will likely be pretty embarrassed they made this mistake, so please make light of it.
posted by lizbunny at 3:24 PM on February 4, 2016 [1 favorite]

Could you call (yes, I know) your closest contact with that organization and ask what gives? Their PM and accounting departments probably didn't conspire to stiff you, aka 'never attribute to malice what can be chalked up to ignorance or inattention'.

"Hey, I received a contract offer from J. Doe in your accounting dept and it looks like they've mistakenly quoted my monthly rate as the total contract rate - do you know about this?"
posted by a halcyon day at 3:25 PM on February 4, 2016

This is one of those few times I would actually voluntarily make a phone call, to whoever my contact is there that sent me the document. Because either it's a typo, or they're waiting for your call to ask if it's a typo and confess that no, it's not, and here's the explanation.
posted by Lyn Never at 3:25 PM on February 4, 2016 [3 favorites]

"I am assuming there was an error somewhere along the way as $foo is the monthly rate you previously paid me and it looks like you are offering me $foo for 8 months. I cannot accept a contract for $foo for 8 months work. Please clarify if there was a miscommunication about the rate."
posted by Michele in California at 3:26 PM on February 4, 2016

Best answer: Hi Contact,

I'm delighted to be offered this project, but the stated rate of $X is the rate I previously agreed with YYZ Company as a monthly billable. Can you clarify?

Thanks,
We put our faith in Blast Hardcheese

Don't state a position, apologise, decline, ask if it is their best offers, etc. Just ask them to clarify.
posted by DarlingBri at 3:29 PM on February 4, 2016 [44 favorites]

My take is that you don't ask for clarification or whether a mistake was made--
just state your rate and interest!

If it is a mistake they will catch it when they see that your rate [and probably that of other candidates] is much different, if it isn't a mistake they will have one more data point of what the market rate is.
posted by calgirl at 4:08 PM on February 4, 2016 [1 favorite]

It sounds like they're offering you the typical monthly rate.

I would just say, "Just to confirm is $XXX the monthly retainer for this project?" If they say it's for the entire project say that the workload is too heavy for that.
posted by My Dad at 4:13 PM on February 4, 2016 [4 favorites]

Don't discuss how you might think it's a mistake, just tell them what your rate for this project is.

"I received the contract and it looks good, my only issue is the rate, I charge $Foo for this type of work. Please amend the contract so I can get it back to you by close of business."

Don't even debate the existing rate, it's not important. Your rate is $Foo, and if they want you, that's what they need to pay.
posted by Ruthless Bunny at 4:37 PM on February 4, 2016 [2 favorites]

One thought: you might be nervous because you don't know how to approach the idea that they might actually be wanting to pay that little. Here's a thought: if they are actually wanting to pay that little, then maybe they are looking for a different _kind_ of contractor or the scope of work is not what you are reading.

Also: your nervousness about just _asking_ could be related to a fear that something "bad" will happen. If you think through several possible scenarios, that fear might lessen.
posted by amtho at 5:52 PM on February 4, 2016 [1 favorite]

Do it on the telephone. Call your contact, and say "Can we discuss the project?" and then go directly into it. You want to specific answers here:

1) Is the rate correct?
2) If it is, why?

Conversations such as that are always best on the telephone.
posted by nickrussell at 6:14 PM on February 4, 2016 [3 favorites]

Best answer: If you don't want to go through the official channels with everyone above's wonderful advice...

You've worked for them before, do have know someone thats not in the financial chain of responsibility you can contact unofficialy to see if there's something going on weird financially with the company or a new contracts person, or ??? Mystery reason
posted by TheAdamist at 8:47 PM on February 4, 2016 [1 favorite]

A few good rules of thumb I've learned in client services:

- Don't close doors, there's always options
- Give your client control of the options
- Don't call out their mistakes
- Don't make your future workload their problem
- Don't be all about the money honey

You might simply say:

Thanks so much for reaching out, this job looks great. I appreciate all the detail you put into the email. I was thinking about what you said about xxxx and I'm really excited to see how that's going to come together, I have some ideas. I'm very interested in this job! Sadly, it's lower than my typical rate so it would be hard to commit to. What do you think we should do here?
posted by gillianr at 10:46 PM on February 4, 2016 [3 favorites]

If you have to point out someone's mistake, always do it on the phone!
posted by monotreme at 10:54 PM on February 4, 2016 [3 favorites]

Response by poster: Thank you, everyone!

In the end, I realized for a couple of additional reasons that I couldn't take the job anyway, so the rate was not relevant after all. But I did offer to recommend someone else, and could they confirm that $X was the rate so I could let the person know. So it will be interesting to see what they say!

(I'm honestly not "all about the money" with a lot of these projects but the rate for this worked out to about $2.50/hr for highly skilled work. It wasn't like oh, I won't work for less than top dollar.)
posted by We put our faith in Blast Hardcheese at 8:47 AM on February 5, 2016

Response by poster: UPDATE: It was an error! They are trying to work out exactly what rate they meant to offer but the original quote was definitely not it. Someone just cut and pasted it from another offer along the line and didn't notice the discrepancy.
posted by We put our faith in Blast Hardcheese at 12:12 PM on February 5, 2016 [16 favorites]