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Pricing your work
Set prices that reflect the value of your work, cover your costs and support your business goals. This guide will help you understand different pricing methods, what to consider and how to feel confident about what you charge.
Key considerations
Before setting your prices, it’s important to understand a few key things.
Cover your costs
Make sure your prices cover all your business costs, not just your time.
Value your time
Your time is valuable. Include time for the work, plus research, communication and revisions.
Reflect the value
Price based on the value and benefits you provide, not just how long it takes.
Meet your goals
Set prices that support your income goals and allow your business to grow.
Common pricing methods
There’s no single right way to price your work. Many small businesses use a combination of methods depending on the project.
Fixed price
A set price for a clearly defined project or deliverable. Works well when the scope is clear and unlikely to change.
Hourly rate
You charge for the actual time spent on the work. Useful for ongoing work or when the scope is less defined.
Day rate
A fixed rate for a full day of work. Often used for consultancy, training or larger projects.
Retainer
A regular fixed fee for ongoing support, e.g. a set number of hours or agreed tasks each month.
Factors to consider
When setting your prices, think about the following.
1. Your costs – Include software, equipment, subscriptions, insurance, marketing and other overheads.
2. Your time – Factor in all time spent, not just the core work (e.g. emails, meetings, research, admin).
3. Your experience and skills – More experience, specialist skills or a strong track record can justify higher rates.
4. Your target market – Consider what your ideal clients are willing to pay and what’s competitive in your industry.
5. Your project scope – Be clear on what’s included and what’s not to avoid scope creep.
Example pricing calculation
Here’s a simple example of how to work out a minimum hourly rate. Adjust the figures to suit your own business.
| Item | Example (annual) | Notes |
|---|---|---|
| Income target | £30,000 | The amount you want to pay yourself (before tax). |
| Business costs | £6,000 | Software, equipment, insurance, marketing, etc. |
| Total annual costs | £36,000 | Income + business costs. |
| Billable hours per year | 1,200 | e.g. 25 billable hours per week × 48 weeks. |
| Minimum hourly rate | £30.00 | £36,000 ÷ 1,200 hours = £30 per hour. |
Tips for setting and reviewing your prices
Research what others in your industry charge.
Be clear on the value you provide.
Start with a minimum rate and review regularly.
Consider different pricing methods for different types of work.
Don’t undervalue your work – factor in all your costs and time.
Increase your prices as your experience and demand grow.
Common mistakes to avoid
Charging too little and not covering your costs.
Forgetting to include time for admin and communication.
Underestimating how long a project will take.
Matching prices based on competitors without considering your own value.
Not reviewing your prices regularly.
Saying yes to work that doesn’t fit your pricing or goals.
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