tag:blogger.com,1999:blog-3729674823895661245.post7381003484370785915..comments2023-07-27T08:33:50.134-07:00Comments on David Waywell: The Unhappy GeneralistThe Spinehttp://www.blogger.com/profile/13306934549725508047noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3729674823895661245.post-55286765450178633062013-10-26T17:14:07.000-07:002013-10-26T17:14:07.000-07:00Pricing is quite simple – apart from the maths. H...Pricing is quite simple – apart from the maths. Here’s how it works:<br>Assumption 1: As a freelance, 40% of your working time will be spent non productively. You’ll be invoicing, pitching for new business, writing proposals, dealing with advertising, etc etc.<br>Assumption 2: The cost of the hardware and software you need to run your operations will always exceed your expectations – and you’ll have to upgrade on a regular basis. Assume a 50% markup on your costs. In other words if you want to nett £10 an hour, you’ll have to charge £15 (but see assumption 1 and 3)<br>Assumption 3: You have other costs you haven’t even thought about. Heating, lighting, business rates, coffee, insurance, advertising, professional fees etc etc. Assume another 50% on your costs.<br>Assumption 4: Though this is not an assumption, it’s a certainty. HMRC will want their cut. NI and Income tax. And accountancy fees to try and get it marginally below 30%.. Assume 30% of your turnover and pray to the deity of your choice that you don’t get audited.<br>Assumption 5: You’ll work 40 hours per week. Fortunately, not every week. Well, let’s be blunt, with Christmas, Easter, Eid, Diwalli and all the rest you’ll be lucky to get 40 paying weeks per year (see Assumption 1).<br>So, let’s say you want to earn £3000 per month, free and clear into your bank account. £36000 per year. Outside London that’s not too bad a figure. Inside – well scale to fit.<br>Which means, on an hourly basis, you will need to charge £66.82 for every hour you devote to your clients work. That’s the maths. If you want to see the spreadsheet with the detailed calculations it will cost you £66.82.<br>And, if you wonder why things are so expensive, it’s because other people have also done the maths.John Richmondnoreply@blogger.comtag:blogger.com,1999:blog-3729674823895661245.post-35201482151120130672013-10-27T03:51:52.000-07:002013-10-27T03:51:52.000-07:00Wow, thank you so much. That's very helpful an...Wow, thank you so much. That's very helpful and quite the eye opener. £66 an hour is dreamland pay but I guess it makes sense. I'll have to run it past my client and then see what they say when they climb down from the ceiling. ;)TheSpinehttp://www.the-spine.comnoreply@blogger.com