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.

Transcript

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