Figuring out what to charge

The hardest part of developing a fee schedule is figuring out what to charge. The professional fees in all fields are rather idiosyncratic. Rarely can a freelance professional set an across the board price for services. Most professionals have sliding fees. Some old, favored clients are always charged less than newer, more affluent clients. Some clients are charged overtime and for rush jobs, while others never are. And in almost every field professionals charge different rates for corporate or commercial work as opposed to creative or literary work.

Then, too, there are various ways to structure a professional fee. In the course of one year a professional is likely to take on jobs that pay by the hour, the day, and by flat fee.

What does it all mean to someone starting out in freelancing who is unsure what to charge or even how to figure out a fee schedule? Basically, a freelancer should not get too caught up in working for one preset fee—for one hourly rate. Sometimes a client will pay you less per hour, but you can pad the bill so you end up earning as much as you would if you charged a higher hourly rate. Sometimes you take a consulting job that is not particularly interesting or challenging but which pays well, so you can later take on creative work that does not pay so well. The trick is to charge enough overall so that you earn what you need to earn. But even a sliding scale or a willingness to negotiate does not mean that you will not require a well-planned rate schedule. If you ever go into a meeting to settle a fee and are unsure what to charge or what you would like to earn, then you will probably walk away a loser. You must always be prepared to negotiate, and you should expect to earn what you are worth 90 percent of the time. To do this, you need to figure out in advance what the general fee ranges will be for your services. The only danger is in setting an hourly fee and measuring all your work by that one standard.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact, Line of Sight