Hi Cris,

It sounds like you've got a good opportunity even in the face of being out of work. Congratulations. :-)

You ask whether you should charge a *lot* based on what you'll save them, or less based on the soft market.... I think it depends.

Based on your description, your work will make the company very happy and you're the only one who can do it in a timely manner. But you don't want the managment of the company to view you in the same light as Hewitt (overcharging). And you don't want some PHB to decide that they need to save what they're paying you and hire one of Norm's "ex-dot-com guy" coworkers to take over for you...

Maybe Andrew Grygus has some thoughts on pricing situations like this that he can share...

Ideally, I think, you should ask them what they'd be willing to pay for you to do the work and take the negotiations from there. Perhaps you could up the price if there was an agreement for you to work 3-6 months for 75% of what their initial offer, but 125% after a satisfactory performance review at the end of that period. Something like that.

I think the initial pricing is in their hands. They have to decide what the project's really worth to them. Once a number is on the table, then you can haggle over how it should be adjusted.

Finally, my guess is that either you'll get the job or you won't. In that sense, your pricing of the job will have little to do with your security there. If they're convinced you, and only you, can do the job and you'll save them lots of money, then only something screwy should keep you from getting the job. If they hire you and things become dire enough that they have to get rid of someone who is saving them millions, then the company is in very dire straights - so your cost would also be irrelevant.

My gut feeling is to ask for a fair price. You want to leave the door open for future opportunities, not get the reputation as a great guy who charges a diamond-encrusted, platinum wrapped price. :-)

I hope this helps a bit. Best of luck!

Cheers,
Scott.