4: Pricing Your Work
- Due Apr 24, 2022 by 11:59pm
- Points 25
- Submitting a text entry box
Use the following questions to help you find your hourly rate to help you figure out what your time is worth.
The most difficult decision for designers is how much to charge for their services.
Finding the answer seems simple enough. It really is a question of how much your business should charge in order to pay for its operation, which includes your salary, and enough to put a little aside for a rainy day when bills pile up and every client you have seems to be on vacation.
Take a look at the big picture.
How Much Should You Charge?
The cost of doing business.
The cost is based on real expenses or operating costs or overhead.
These costs are items like rent, utilities, leasing equipment, telephone, materials, supplies, insurance, taxes, payroll, travel and entertainment, memberships, petty cash and postage.
Complete the following on a separate paper. Using a calculator, find your hourly rate and put in the text edit field in Canvas submit your hourly rate.
Please let me know if you have any questions.
The Formula
| Monthly Expenses | |
| Home office rent | $ |
| Salary | $ |
| Utilities water, gas, electricity, wifi |
$ |
| Taxes | $ |
| Insurance | $ |
|
Equipment purchases |
$ |
|
Phone Service |
$ |
|
Office Supplies |
$ |
|
Sick days/vacation |
$ |
|
Self-promotion |
$ |
|
Business travel expenses |
$ |
|
Business entertainment |
$ |
|
Saving for retirement |
$ |
|
Other |
$ |
|
TOTAL Monthly Expenses |
$ |
| How to Calculate Your Hourly Rate | |
| Divide your total monthly operating costs by four to get your weekly overhead costs. | $ |
| Divide the weekly total by five to get your daily operating costs. | $ |
| Divide your daily operating costs by 6, the average number of billable hours most people can manage to squeeze out of an eight-hour day. | $ |
| Total Hourly Rate | $ |
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