What to charge is one of the most frequently asked questions in our community, and with good reason – it’s a tough nut to crack. There isn’t a one-size-fits-all solution. Chances are, though, you’re not charging enough.
We upped our rates a while ago, but it wasn’t based on feel. It was based on good, ol’ fashioned math. A mentor of mine broke it down to me like so:
We want to be able to pay an average salary of $50,000 to every employee in our company. When we factor in items like: sick days, average percentage billable time per employee, holidays, stat holidays, overhead costs, and more, it essentially boils down to this: we need to charge $120/hr to generate enough revenue to meet that average salary goal.
Math. Who knew?
Jeff Archibald ☞ The Blunt Realities Of Running Your Own Design Business