What is your work worth and how should you price projects?
SelfMade encourages project based pricing. Why? We know that it offers more flexibility and freedom to grow. You’re paid for what you provide instead of how many hours you work. As you get faster at producing your work, you’ll earn more money in less time.
Be sure you are clear with clients about the scope of your project. Always use a contract.
There is no magic formula, and that’s a good thing.
On one hand, expensive work can communicate value, but you need to know what your clients can afford.
Ask yourself, what’s best for you? Think about how you want to work. Do you want a few high paying clients or many moderately priced ones? Do you prefer a high volume of easy low priced projects?
Think about what you are offering and what you need.
Even though you are pricing by project, you need to estimate the hourly rates.
- Find the average salary or hourly pay for your job title.
- See what’s standard based on your experience and location.
- Estimate how many hours the project will take you.
- Add 30-35% more for taxes.
Feels like a high price? Remember, your client is saving money when they hire per project.
They don’t have to pay for:
- Health insurance
- Home office costs (WiFi, electronics, software, and applications)
- Paid time off
- Taxes
- Retirement
Keep the above in mind when you price your work. If you’re doing this full-time, you’ll need PTO and to save for retirement.
Can you offer more for more?
Does what you need to earn feel too expensive for the work you are doing? Think about how you can give your client the best experience or add another skill. Offer more value for a higher investment. Pricing is based on what you say your work is worth.
Keep reading to learn more: