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Ethical Pricing: Calculating Your Burn Rate & Finding Your Day Rate

Jim True
June 23, 2017

Ethical Pricing: Calculating Your Burn Rate & Finding Your Day Rate

Pricing for any creative work (or any work for that matter) requires you to understand your costs first. So that's where we start: figuring out how much you need to survive (your burn rate) and scaling up from there to determine your ethical pricing day rate.

Jim True

June 23, 2017
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  1. Ethical Pricing Finding Your Burn Rate &
 Calculating Your Day

    Rate
  2. Jim True Support Lead & Community Manager
 Pods Framework http://pods.io

    | @podsframework http://jimtrue.com | @jimtrue
  3. What do you need to work? ƞ Ƅ ƃ

  4. Calculating Burn Rate ƞ Ƅ ƃ 1,000 200 200 100

    1,500 200 100 300 200 200 200 600 $2,400
  5. Burn Rate = Bare Minimum $2,400

  6. Burn Rate = Bare Minimum $2,400 Monthly $100 Daily /

    24 $12.50 Hourly / 8
  7. Ethical Pricing Rate > Burn Rate $3,000 Monthly $125 Daily

    / 24 $15.63 Hourly / 8 { + 25%
  8. Ethical Pricing Rate > Burn Rate $3,600 Monthly $150 Daily

    / 24 $18.75 Hourly / 8 { + 50%
  9. Ethical Pricing Rate > Burn Rate $4,800 Monthly $200 Daily

    / 24 $25.00 Hourly / 8 { + 200%
  10. How many days do you want to work? 365

  11. Calculate Days Like a Business 365 52 x 5 =

    260 - 26 (10%) = 234 Ƅ - 26 (10%) = 208 - 26 (10%) = 182
  12. Calculate a New Day Rate 182 Working Days $4,800 Monthly

    $57,600 Annually $57,600 / 182 = $316.48 Daily Rate
  13. You have to determine for yourself:
 What’s your Burn Rate?

    What’s your ethical markup? How many days do you want to work?
  14. Questions?

  15. Jim True Support Lead & Community Manager
 Pods Framework http://pods.io

    | @podsframework http://jimtrue.com | @jimtrue
  16. Tampa Bay WordPress Meetups Monthly in St Pete @ Iron

    Yard
 1st & 2nd Thursdays every Month http://tampabaywp.org | @tampabaywp Slack Chat | Facebook Group | Meetup
  17. Thank you! Iron Yard St. Pete Working Women of Tampa

    Bay
 July 5th 9AM, Morning Coffee Iron Yard St. Pete | @theironyard #tampabay