If you are (or are thinking about becoming) a self-employed expert service provider finding the lowest price you can offer can be done in 10 minutes.
Step 1: Take the total number of weeks in a year (52) and subtract your vacation weeks
Step 2: Multiply the result of step 1 with the number of usual billable hours per week
Step 3:_ Divide the total amount you need to earn in a year with the result of step 2.
To try it out yourself, click here:
Congratulations, all the calculations needed to find your minimum asking price are 100% complete. The overall considerations about what your price should be, however, are approximately 15% done.
Calculations can give you the “foundations” of the “house”, telling you nothing about where the “roof” is. Determining the “roof” is 85% of the work, but let’s get back to an important topic: now that we know where the foundation is, what do we do with the clients that cannot or will not pay even that much? “Drop them” is an easy and satisfying answer, but I think that’s misguided.
If you can’t get money from them, maybe you can divert their attention to something you offer that can be “paid” with their time or attention, providing you with valuable reach, social proof, insight, or inspiration that you would not have otherwise. If you can offer it in an efficient manner, it can still be a good deal for everyone involved.