To raise your hrly rates
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- bklyndroobeki
As a freelancer when / how do you decide to bump up your hourly rates (and for how much?)
How do you relay the new rate to long time clients?
- fyoucher10
Easy. Don't charge hourly. Project rate bro, all the time.
Unless you're in-house (and you're really being looked at like a temp employee), then that may not work. There's a slew of threads on this subject btw, may be good to search and see what others say there.
If I were charging hourly, I'd make a note from the start, that you'll be raising your rates by XXX% annually. Your experience and knowledge increases -- so should your rates.
- A flat project rate is never pretty. The client will milk you. You'll end up spending double the time estimated because they'll ask for a bunch of in-betweeniCanHazQBN
- stuff as part of the project and still hold you to your flat rate.iCanHazQBN
- That's why you have contracts that spells out what's included and what's out of scope. If you're having these issues, you're doing it wrong.fyoucher1
- detritus0
When you find yourself working more than you want for less money than you think you deserve, up your rates.
If you're losing time for yourself, up your rates.
if you're working all hours, all weekends, up your rates.
Let your regular clients know in advance, and or accept one last job at old rates (this only works if, like me, you often do lots of little jobs for clients, so you don't get stung).
- formed0
It's in the contract. But 99% is project based, so almost irrelevant. It's there for when there are little things, changes, etc.
I based it more on other industries, but again, it is rarely used so it really doesn't matter. Client's want to know what it will cost, total, not how many hours it takes.
- pinkfloyd0
Basically try to bill as much as you can get away with.
- studderine0
I'm struggling with this too but don't be a "freelancer". Consultants demand more money.
- jtb260
Working hourly sucks man. detritus is right. Bill by projects. If someone has advice on how to switch your existing clients from hourly billing to project billing that's what you need, but I don't have any good advice on that. All new clients though, bill by project. Develop an estimating spreadsheet with formulas for how to include your fixed costs into the rate and then negotiate your fee based on that. Bill based on % of project complete, or monthly based on an even division of the fee. Maybe just reach out to your existing clients when you start a new project and ask how they'd feel about switching. If you have ongoing work for a few of them suggest a retainer.
- Working hourly sucks? I find the opposite to be true. I like getting paid for exactly how much I work.iCanHazQBN
- studderine0
Check out this concise step-by-step guide to being a consultant. https://news.ycombinator.com/iteā¦
- cannonball19780
"I have raised my rates."
- MrT0
I do it at the start of each financial year. Regular and incremental works best: 5-10% doesn't require any notification IMO.
I've never been questioned, but then I'm only $27.50 a day...
- ETM2
There's always a need for hourly rates. One-offs, maintenance etc. The best way IMO is to do small increases every year to match inflation+1% (assuming that's the main reason you are increasing). It's usually small enough that it's not a problem and if they ask, you have a perfectly valid reason.
I used to do it in the new year, seemed logical, but I now find summer is best. People are in better moods, are going or have just come back from holidays etc. Usually not an issue. After Christmas many people just see one more mounting expense.
- If you're raising simply to increase your profile and profits, that's a whole different game.ETM