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Posted by David Bevan on 04/05/05 15:50
Hi Rene,
I am becoming a little bit concerned about some of the
advice you have been getting about setting a rate for
your work. Don't get me wrong, there is nothing wrong
with charging by the hour, but a lot of times one of
two things happen, either you begin to resent your
customer or they begin to resent you.
I have another method for you to consider about
pricing/costing your work. Try basing your fee on
value. If someone wants a one page site then you look
at how long it will take and ask them a few questions
about what they want to get out the page. If the
client believes that the single page would be the most
inportant part of their interaction with their
audience (I'm being intentionally extreme here) then
would you feel right about only charging 50$ for it?
Personally I would be looking at charging 500$ or even
more.
Another thing to think about where figuring out your
rate is what your time is actually worth. A trimmined
down version of how I have determined my rate in the
past is as follows:
My desired salary: 60,000$
Hours to work per year: 2000h
Now start subtrating from hours to determine billable
hours.
Minus:
Vacation time(3 weeks @ 40h/week): 120h
Overhead time(accounting and such 4h/month): 48h
Networking/Marketing time (figure about 1/3 of your
time): 600h
Sick Days(everyone gets sick eventually): 40h
You also have expenses:
Overhead (space to rent, cd or dvds, computers,
hosting, etc): 20,000$
Advertising(brochures, cards, etc): 3000$
Determine sales needed for the year:
Salary + expenses: 83,000$/year
Determine billable hours
(Total hours - Vac time, sick time, etc):
2000h - 120-48-600-40 = 1192h (actual time you can
spend doing what you do)
Rate to charge:
Needed sales/billable hours
83,000$/1192h = 70$/h
Use that number as a base, initially add 20% more time
to your time estimates and find out what the client
is willing to pay and charge them that or a little
more, they will pay you more.
HTH,
David
--- -{ Rene Brehmer }- <steelrodent@metalbunny.net>
wrote:
> Hi gang
>
> Sorry for asking this question here, but I don't
> know where else to ask.
> And Goole'ing didn't help me much.
>
> My father-in-law has a friend in Alaska (and I'm in
> Canada) that needs a
> website done. Not sure what kinda site he wants done
> yet, or how much he
> needs me to do for him (like webspace, domain
> hosting, domain registration,
> and such) but for now I've been asked what it'd cost
> to get it done.
>
> I'm assuming it's something pretty simple, since
> it's just for a motorcycle
> club, but he wants a price first ...
>
> What do y'all charge when you do sites for people
> ??? ... In the past I've
> only done pro-bono work (because they usually don't
> require much work, so
> it's not a problem getting it done while working on
> other projects), but
> I've never actually done paid work before... It's
> more that I just recently
> moved to Canada (from Denmark) so I have no feeling
> with what the prices
> and rates are overhere ...
>
>
> TIA
>
> Rene
>
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