Organization Plus!

Susan Lannis, Time Liberator

  • Facebook
  • LinkedIn
  • Twitter
  • Home
  • Services
    • Facilitate Thinking™
    • Productivity & Office Organizing
    • Business Think Camp™
  • Speaker
    • Corporate Training
    • Conference Workshops and Keynotes
    • At-No-Charge Presentations
  • Authored Publications
  • Blog
    • View All Posts
    • Time
    • Productivity
    • Office Organization
    • Thinking
    • Small Business Management
    • Solo Entrepreneurship
    • Personal Stories
  • About
    • Unique Abilities
    • What I Know And How I Know It
    • Susan Lannis – Biography
  • 503-891-2140

Setting Your Fees

Posted By Susan Lannis

Setting fees is a mathematical process, not a shot at a dart board. There are two ways to calculate what you should charge.

The first method is based on financial requirements. Total up everything you need to cover personal living expenses – be sure to include deposits to savings, retirement, everything. You can work from either an annual figure or a monthly averaged figure. Add up everything you expect to spend in the business plus 20% more to be left in the company to grow it to the next level. Add the two figures together to get the total dollar amount you need to generate from the business. Divide by the number of billable hours the same time frame (month or year). A typical service provider can bill about 25 hours per week.

The second method converts an employee pay rate to an independent contractor fee. Take the hourly rate you made or wanted to make and multiply it by a number between 2.5 and 3.0 which adjusts the base rate to cover the fact that you now have the business overhead, the health insurance and retirement plan. Take that result and multiply it by the typical 40 hours per week. As a final step, take that result and divide it by the number of hours per week you plan to bill – not just work, but actually bill. So the net same money as a $20 per employee you would have to charge $80 per hour as an independent contractor. Here’s the math:

EX: 20$ per hour as an employee x 2.5 = $50 per hour.

50$ per hour x 40 = $2,000 per week

$2,000 per week divided by 25 billable hours per week = $80 per hour as an independent contractor

Regardless of which method you use – I use both – you then need to determine if your target market will be willing to pay your rate. If not, you have choices, bill more hours at a lower rate, reduce your costs or move to a higher market. Even better than an hourly rate is value based project pricing but that will be another post!

Filed Under: 5. Small Business Management, 6. Solo-preneurship, All Time Liberation Posts

Ask Susan a Question

Articles & Answers

Additional Links

  • Contact Susan
  • FAQ

Member

National Association of Professional Organizers

NW Nature Photography

2019 Calendar Order Form Susan likes to liberate her own time too - so she can spend it hiking and photographing the beautiful Pacific Northwest. You can see her photographic work at NorthwestNaturePhotography.com.

Subscribe to Blog via Email

Subscribe to receive notifications of new posts by email.

"Time can’t be found or saved or made - but it can be liberated.”

Services

I offer business organizing and productivity improvement services - either on-site hands-on or virtually using video or teleconferencing, small business strategic planning, help you move ideas to implementation and corporate productivity training.

Read More →

Authored Publications

Over the years - as an author and speaker - I have created materials - reports, forms and how-to's - to assist my clients and others. Some are offered at-no-charge and others - like the series of e-booklets I am currently working on - have a fee.

Read More →

About Susan

Everything you need to know to make a decision about whether or not my "unique abilities", work history, education, and work ethics are the right match for helping you or your company clarify your thinking, simplify processes, organize work spaces and liberate time.

Read More →

© 2017 Time Liberation
Web development by Hood Mountain Studios • | Privacy Policy • | Admin