Working 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.
- 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
Available hours / capacity = Billable hours
Sales target / billable hours = Base rate
Base rate + margin = Sales rate
(Hours per project * Sales rate) + Margin = Project rate
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.
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