Educating Customers about Working Conditions
Other chapters discuss the different ways to work, choosing how to work and with what to work. Let me suggest here that you do some hard thinking about these items, and figure out how working the way you want to also provides your customer with a bottom line benefit (see Using Bottom Line Thinking to Get What You Want). In other words, you need to figure out WIIFM (What’s In It for Me), only from the customer’s point of view.
Let me share with you examples from my own business and show you how I turn my preferences into benefits for my customers.
Where You Work: Onsite or Offsite
I prefer to work offsite; that is, at my home office. I like this situation because I can work without interruptions, I can work the hours I choose as long as I get the work done, and I have very low commuting costs. I don’t need the social atmosphere of an office.
Here is what I tell my customers when they ask where I will do the work:
- I work in my location and save you the cost of a work space and equipment. Most of my contacts with your experts are by telephone or e-mail, but I am available for meetings, demonstrations, and so on when you need me. I work without all the interruptions that can occur in a busy office such as yours, so my productivity rate is very high."
- I’m sure you can make just as convincing an argument for working onsite. Just be sure that you are benefiting the customer. The customer really doesn’t care if you are happy. The customer cares if he or she is happy. With so much emphasis on the wonders of the Internet, I’m surprised that many employers still feel that if they can't see you, you must not be working. But then, many companies are not even computerized.
Payment Options: W-2 or 1099
I prefer to have a 1099 working arrangement, in which I function as an independent contractor. The customer pays my rate and I take care of taxes and benefits. (see Picking the Right Kind of Employment) Some customers know the difference between W-2 and 1099, but others never deal with the financial side of projects. When I meet a new customer, here is what I tell them if they do not know the difference between temporary employees and independents:
“I prefer a 1099 arrangement. That way, you and your bookkeeping department do not have to deduct anything or fill out extra paperwork for taxes.”
On the other hand, in a W-2 arrangement, the customer pays half of your unemployment tax along with withholding, so you get 7.5% more pay. Theoretically, anyway. Some companies have policies about the status of their outside resources. You need to find that out first. Some will modify the policy if you ask. Others won't. Be aware that only 1099 funds are eligible for tax-deferred contributions in a retirement plan. You can't count W-2 monies as part of your income for retirement contributions. Customers don't care about your retirement planning, but you should.
Software: Yours or Theirs
Some companies have corporate approved software that I must use for everything, even if the software is not the best choice for the task. If that is the case, I have to decide if I want the project or not. You certainly should ask if other software is an option when you feel strongly that a different package will do the job better or faster. Often I take on projects in which the only deliverable is a camera ready hard copy master. The software used to create the master does not matter, just as long as the quality is up to the customer's requirements.
If their software does not have the capability to create HTML codes, for example, and you need HTML to post the documentation on the Web, you should have one or two suggested packages to recommend. Do your homework and be prepared. When you help your customer learn, you help yourself to become indispensable.
Flexibility: Yours
Usually my customers agree that off-site, 1099, and WordPerfect are the best solution. When a customer does not agree, I know that I can be flexible; you can be, too:
- I can take a very short term onsite project and not jeopardize my contacts with other customers.
- I can work as a temporary W–2 employee knowing that it’s just another tax form to fill out. I have enough 1099 customers that I won’t jeopardize the status of my independent business or my retirement planning.
- I can use Microsoft© Word and Framemaker, as well as WordPerfect, and I can learn other software applications very quickly.
Flexibility about working conditions can help you become and remain successful as an independent.