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
   

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2. Jim True
   Support Lead & Community Manager

   Pods Framework
   http://pods.io | @podsframework
   http://jimtrue.com | @jimtrue
   

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3. What do you need to work?
   ƞ
   Ƅ ƃ
   

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4. Calculating Burn Rate
   ƞ
   Ƅ
   ƃ
   1,000
   200
   200
   100
   1,500
   200
   100
   300
   200
   200
   200
   600
   $2,400
   

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5. Burn Rate = Bare Minimum
   $2,400
   

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6. Burn Rate = Bare Minimum
   $2,400 Monthly
   $100 Daily / 24
   $12.50 Hourly / 8
   

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7. Ethical Pricing Rate > Burn Rate
   $3,000 Monthly
   $125 Daily / 24
   $15.63 Hourly / 8
   {
   + 25%
   

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8. Ethical Pricing Rate > Burn Rate
   $3,600 Monthly
   $150 Daily / 24
   $18.75 Hourly / 8
   {
   + 50%
   

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9. Ethical Pricing Rate > Burn Rate
   $4,800 Monthly
   $200 Daily / 24
   $25.00 Hourly / 8
   {
   + 200%
   

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10. How many days do you want to work?
    365
    

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11. Calculate Days Like a Business
    365 52 x 5 = 260
    - 26 (10%) = 234
    Ƅ - 26 (10%) = 208
    - 26 (10%) = 182
    

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12. Calculate a New Day Rate
    182 Working Days
    $4,800 Monthly
    $57,600 Annually
    $57,600 / 182 = $316.48 Daily Rate
    

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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?
    

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14. Questions?
    

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15. Jim True
    Support Lead & Community Manager

    Pods Framework
    http://pods.io | @podsframework
    http://jimtrue.com | @jimtrue
    

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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
    

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17. Thank you!
    Iron Yard St. Pete
    Working Women of Tampa Bay

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

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