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Thread: Magento Consulting Rates
Jun 13, 2012, 15:11 #1
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Magento Consulting Rates
Why would one company pay 10x higher rates than another, for analogous Magento developers?
I see professional Magento companies charging $150-200 per hour. I also see the new X.commerce (X.com) official website (the program Magento is being rolled into) has a prominent developers directory run by ODesk.com, where developers seem to average $20 per hour. Of course we all know that $20 per hour is for developers overseas who probably work alone and have little accountability. $200 per hour are going to be highly accountable, more assurances, blah blah. But come on! In my mind that justifies maybe 3-4x higher rates. But 10x?
I say all this as a skeptical developer who wants to run a high end company myself. Truly, for me to run the kind of shop I want to run, with local talent who is easier to manage and turn out quality results, it is NOT POSSIBLE to charge any less than $150 per hour, if I want to be profitable. But when I look out there and I see how HUGE the cost differential is, it makes me really worried. I can sell 2-4x higher rates on professionalism, but how do I sell 10x higher rates? Especially when X.commerce is emphasizing the cheap labor available (thanks eBay!).
Appreciate any thoughts on how to reconcile this bizaaro development world.