The goal of each is to determine an hourly rate charge that meets the owner s wishes and covers all costs and non-billable time. Non-billable time is time spent doing marketing, general research, travel, etc. Method 1 Setting an hourly rate using desired annual income. Method 2 Service cost analysis Begin with the desired hourly rate and adjust for non-billable time and indirect costs. Although seemingly obvious, large jobs take more time than small jobs.
Complex details take more time and skill and working with some materials is more difficult.
Never give a final, guaranteed price estimate until you know all of the details of the job. Compare your skills to others in the area. Individuals with excellent skills can command higher prices if the job demands such expertise. Those people who can work fast and still maintain quality can give themselves more free time. At times you will find clients willing to pay higher prices in order to get a job completed more quickly.