How to work out your hourly rate

Pricing your projects or working out your hourly rate need not be complicated. In this episode I walk you through how to calculate both a reasonable and logical hourly rate and use that to price your projects and set achievable financial targets.

The breakdown

• What lifestyle do you want for you and your team
• Calculate capacity and hours available
• Work out your costs to survive
• Establish how much you want to turn over to include profit
• Compute the base rate
• Mark-up the base rate inline with the industry
• Use your rate to calculate reasonable productised project prices
• Set targets for how many of each productised service you’d need to sell per year

Example calculations

Available hours / capacity = Billable hours

Sales target / billable hours = Base rate

Base rate + margin = Sales rate

(Hours per project * Sales rate) + Margin = Project rate

The workshop

If you are a premium member, you can check out our workshop here that will help you:

• Work out your costs
• Work out your financial targets
• Work out your billable resource
• Work out project rates
• Sanity check you can deliver
• Establish your yearly sales targets
• Build on recurring revenue

If you are not a premium member you can join here.