Would you accept a £50/day rate reduction for a six-month contract extension?

I guess it all depends by some factors:

- Your current situation outside the contract
- The importance of the project
- Your relevance on the project

As usual, you cannot apply the same strategy in every situation. Gains are not always represented with money.
Sometimes accepting a reduction could be beneficial for the future as you might strengthen the relationship with the client and, with time, becoming so valuable that replacing you would cost them too much.

If the project is not that important though and the time/earning ratio is not balanced then I'd push back the 50£ decrease saying you also cannot afford to work for less.
Generally speaking I tend to keep every job and if I have a situation like yours to face, I would surely try to:

- Relaunching with another offer reaching a middle ground, let's say 25£ in your case or 30£
- Understanding the reasons why and how long for, before signing the new agreement
- Working under the new conditions but if I feel unhappy, reopen the conversation once the contract terms expire.

It's true everybody try to do more with less but it's also true many businesses are really trying to survive so I can understand some of the cuts they have to do. Get to know the client and have a feeling if their request can be somehow justified.
I don't generally believe dropping your rate immediately show you're weak or is diminishing your value but you must be ready to challenge their offer, create some friction and eventually get to a common ground so it shows you're not entirely happy and you're kind of doing them a favour because otherwise if you just say yes, that would instead trigger the idea they can do it again.

Your value is not represented by the immediate reaction but by the compounding of your behaviours and sometimes they can take long before you can use them in your favour.
A freelancer is an all-in-one company and so skills like reading the room or spotting when something seems off are as important as being a good software engineer. For that you have to try and fail and learn from it so be brave and go with your guts but handle your feelings with your head, be polite and take time to think if you need to.

I am new to freelancing even having 20 years of career behind my shoulders as a permanent employee and I feel like a beginner when I need to talk about money. I am learning, sometimes I win, sometimes I lose. I realised one of my criteria to define a contract is also the personality of the client. I might still take the project but I might be more stiff on my prices if I don't particularly like him/her.

So, to close it up. You are the only one knowing if the 50£ decrease might be worth it or not. Try to challenge it and get to a middle ground. If they don't make any step towards you then take notes because you are learning something about them. Then decide what you want to do based on your current situation.

For the future, you now know one more thing about your client and about yourself and over time you'll be able to come always on top on similar situations.


Be Humble, Be Proud, Good Luck!