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How to set your rates?

How to set your rates?

I work as a freelancer or as a micro-entrepreneur, how do I find the right price or average rate to apply for my remuneration? How to calculate hourly rate or daily rate based on market price? Basically, how do you set the price of a service so that it is neither too low nor too high? Here are different ways to calculate the price of a freelance job.

Set prices based on market research

Setting a price is never easy and it is necessary to base oneself on a range to determine the price of its services according to the prices practiced on the market. The flexibility as well as the method of calculating the prices of a product can be considered as advantages and disadvantages for an independent external party. To be profitable, you will need to establish a price that suits you and is acceptable to your customers. This is called the psychological pricing policy: your pricing strategy in relation to your professional activity must never exceed the maximum price applied in high season, otherwise your customers will find it too expensive.

Set your average price with your commercial margin without falling into the trap of "selling off" your service delivery

Setting the selling price of its services depends on the prices charged by the competition, but also on your value as a worker and your sector of activity. Certainly, finding assignments is your priority, however you should never work as a freelance consultant and land an assignment if it should not even exceed the break-even point. Auto-entrepreneurs, freelance writers, freelancers and developers often fall into the discount trap.

Many fear being more independent and setting the right price at the risk of not finding customers. However, this is counterproductive, because it is about the value perceived by others and which will determine your reputation, even as a beginner. Becoming a freelance involves setting your price and the freelance assignments you get will depend mainly on the number of days worked as well as the quality of your services.

Calculation of the price of a freelance service provider

Determining the price to charge a customer may depend on your hours worked, but also on a daily salary that you have set for yourself with a margin rate that you wish to obtain. For the invoicing of your freelance services, you must consider the nature as well as the circumstances relating to the mission. You will especially have to look at the time spent on this mission as well as the level of difficulty. You will be able to set your salary according to an hourly rate. Or you can find a mission and directly set your prices for the whole mission by making a quote.

Be careful, working as a freelancer means that you will have fixed charges, social charges and professional expenses. Your daily rates or your fees will have to be fixed taking these into account.

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