Want to know a simple way to decide what to charge?
As things get more complicated, this method falls apart completely. But if you are looking for a simple formula here is what I have used.
Many people charge based on what it costs to fulfill your service. For example, my first job I charged 150% of the cost. I quickly realized this is not enough to keep me motivated. I then jumped to 200% and then 300%. Then I realized that I was leaving a lot of money on the table because I was charging plumbers the same as surgeons.
This also causes you to lose respect with certain clients. You tell a surgeon they will get a great website for $1,000 and they will not look at you the same way as if you said $5,000.
So, I started basing the price on what the customer charges for their services.
Figure out their hourly rate, or the average hourly rate for the industry, then multiply.
Webdesign: x10
Logo: x3
Consulting: Varies - I never bill at the same rate as they do. Rather, I figure the hours it will take, and charge it at 2 - 2.5 their hourly rate. This leaves room for profit, extras, mistakes, and a very high level of service.
So: For Webdesign
An attorney who charges $500/hr gets quoted $5,000.
An attorney who charges $150/hr gets quoted $1,500.
So: For a Logo
An attorney who charges $500/hr gets quoted $1,500.
An attorney who charges $150/hr gets quoted $450.
So: General Marketing work @10 hours estimated time
An attorney who charges $500/hr gets quoted $10,000 - $12,500.
An attorney who charges $150/hr gets quoted $3,000 - $3,750.
Of course, the more expensive quote gets a much higher level of service. Always, always, always OVERestimate the amount of time it will take to do a project.
Remember, this doesn't always work perfectly but is just a good place to start. Once you know what they are charging their clients, you know where their mindset is at for good quality work. Their price gives a clear indicator of how much they think good work is worth.
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My Business site: WarMarks - Web Development | My Personal Blog: Mohsin Rasool
Mike
Mike
Cheers, Laurence.
Writer/Editor/Proofreader.