(Excerpted from “Talking Money” launching soon at The Freelancery. Folks are pre-ordering.)
The mason who is rebuilding your front steps has to figure in the cost of concrete, some slate, brick, cinder block, a helper, the rental on the jackhammer. That’s what it costs him to do the job.
What he ‘makes’ on the job is over and above that.
That’s a good way to think of your hourly rate or day rate. (If you really want to work that way.)
Think of it as your ‘costs’ for the assignment.
That’s what it costs to get those pages written, re-do all that CSS, illustrate the article.
Same as if you had to bring in a photographer, or a proofreader or production assistant to help with the job. You’d have to add in their costs.
So you take your base rate, and do the figuring.
“Okay. Those are my costs. Now let’s see what we can ‘make’ on this thing.” (Rub your hands together as you say this. Oddly, it helps.)
Maybe, maybe you can descend into your ultra deep efficiency zone and get the job produced in less time. (You cut your costs. More for you.)
Or maybe you make your quote ‘look’ a little better. (That’s in a later chapter.) Maybe you turn 1100 (ugly) into 1280 (ripe). Client actually likes the quote just fine. You ‘make’ a little more.
Or maybe you just work an extra phone call or email into the process, “I was just thinking . . .” “Would it help if I. . .” You up their perception of you, their comfort level. Maybe the job grows a bit. Or just the fee.
You say,”I’ll have an estimate to you by 2pm.”
Then send it by 1 pm.
Okay. Sometimes it doesn’t work.
Sometimes we’re working for costs. It happens.
But at least you’re thinking of your hourly rate the right way.
Just a start.
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(Excerpted from “Talking Money” launching soon at The Freelancery. Pre-ordering is cool.)