{"id":22886,"date":"2020-02-18T08:00:00","date_gmt":"2020-02-18T13:00:00","guid":{"rendered":"https:\/\/honeybook.site.strattic.io\/?p=22886"},"modified":"2022-07-14T15:30:54","modified_gmt":"2022-07-14T22:30:54","slug":"why-your-rates-shouldnt-reflect-time-spent","status":"publish","type":"post","link":"https:\/\/hbb.dev.reliablepenguin.com\/blog\/why-your-rates-shouldnt-reflect-time-spent","title":{"rendered":"Why Your Rates Shouldn\u2019t Reflect Time Spent: How to Determine Flat Rates for Your Services"},"content":{"rendered":"\n
\"How
Photo by Christina @ wocintechchat.com<\/a> on Unsplash<\/a><\/figcaption><\/figure>\n\n\n\n

When you\u2019re just starting out with your business, you likely have no idea how much to charge for your services. You don\u2019t know how long a project will take you or what an \u201cappropriate\u201d price tag (or rates) look like.<\/p>\n\n\n\n

So you charge by the hour.<\/p>\n\n\n\n

\u201cIt\u2019s easier this way,\u201d you decide. You even take the plunge to charge $50\/hour for your services, which feels like you\u2019re really valuing your time! And clients accept that hourly rate. You start getting offered more and more projects\u2026 and then something funny happens.<\/p>\n\n\n\n

You realize that you\u2019re making less money for doing the same work. <\/em><\/p>\n\n\n\n

Here\u2019s the thing: as we continue to work in our field and get more experience, we inevitably begin to work faster and more efficiently<\/a><\/u>\u2026 which means that a project which used to take us eight hours to complete might now only take us five hours to complete.<\/p>\n\n\n\n

Instead of earning $400 for your project, you\u2019re making $250.<\/p>\n\n\n\n

You wonder if you should try to slow down the process, so you can earn the same amount\u2026 but that\u2019s not fair to your clients, and it\u2019s not helping your business if you reduce your efficiencies.<\/p>\n\n\n\n

At this point, you could increase your rates\u2014but it would be a hefty amount to jump your rates from $50 to $80 per hour, just in order to split the difference! And what are you going to do when you get even faster at your work?<\/p>\n\n\n\n

Clients who you had a great relationship with tell you they aren\u2019t able to fit your new prices into their budget, and you start panicking, wondering how you\u2019re going to earn a decent income without sacrificing that time you\u2019ve started saving.<\/p>\n\n\n\n

The answer is to stop charging by the hour<\/a><\/u>.<\/strong><\/h2>\n\n\n\n

Your value, and the value of the services you offer, shouldn\u2019t reflect the amount of time spent on a project. After all, a beginner in your industry will take significantly longer to complete a project compared to an expert\u2014but there\u2019s a very high probability that the expert will produce the higher-quality product.<\/p>\n\n\n\n

Instead of doing hourly rates, it\u2019s time to switch to flat fees (or project-based rates)!<\/p>\n\n\n\n

What matters isn\u2019t how much time you spend working on a project. Instead, the important thing is the quality<\/em> of the work you produce. <\/strong><\/p>\n\n\n\n

Your clients don\u2019t need to know if it takes you 2 hours or 20 hours to complete a project. What they really care about is that you do the job they want you to do, and you do it well and in a timely fashion.<\/p>\n\n\n\n

Now you know that a flat rate is the way to go\u2026 but it can be tricky to figure out how to price your services<\/a><\/u> and set a flat rate!<\/p>\n\n\n\n

With that in mind, here are 5 questions to ask yourself when determining a flat rate for your work\u2026 <\/strong><\/h2>\n\n\n\n