Rate increase - how much to ask for?

[knight007]

Coming to the end of a 12 month contract. No agent involved (contract directly between client and my Limited Company.).
This is my first contract so I'm not sure what % rate increase to ask for without sounding greedy and silly.

I know that there is a big demand for my skills at the moment and there are places that are willing to pay 40% more that what I currently get. However my reasons for wanting to stay here are mainly that I can come home every day and see the kids (comfort zone).

I know the client will want to renew for another 12 months however I will only be interested in renewing for 3 months (rolling if possible) and hopefully pull the plug before I get near the 24 month rule window.

[d000hg]

34%

[JamJarST]

You have got to be kidding!!!

[MyUserName]

Ask for a 10% cut and let them argue you up from there.

[Notascooby]

If I were you (which I'm not) I'd apply for other roles to see what is really being offered. If you apply for and are offered a role at 40% more then you can legitimately turn round to your client and say can you increase your rate to something close to what you've been offered.

If they say no, then you stay put and shut up or you walk.

If the proximity of the role allows you to get home each night easily then its doubtful that the amount lost due to the 2 year rule is worth changing your contract length but if you can't be arsed looking elsewhere and the client doesn't agree to a rate rise then you could ask for a reduced contract length on the basis that you're likely to walk...but remember the client may call your bluff and not extend you and bring in someone willing to work for your current rate.

[FiveTimes]

What have you done to justify the rise ?

Are you 40% better than you were when you accepted the gig ?

[knight007]

Yes I would say I'm more than 40% better than I was 12 months ago.

[BlasterBates]

Probably a few percent. If you are truly in demand and you're fairly reasonably priced 10% would be possible, i.e. "they're offering me 30-40% more but I like you so much I'm only asking 10%".

On the whole companies don't give big rises on principle, even if you're important they'll let you go. The PM will have to approve any rate rise with purchasing.

[northernladuk]

34%

This.

[FiveTimes]

Yes I would say I'm more than 40% better than I was 12 months ago.

If you are more than 40% better then why not ask for 50% or even more ?