One of the questions that we get asked so much more than any other is “what should I charge for X, Y, Z?” and the answer is hardly ever a standardised one. It shouldn’t matter what we would charge, what someone else would charge, what the “going rate” is – all that matters is what you need to charge to make sure you can pay yourself what you want, cover your expenses, tax and profit and have a bit left over as a buffer.
Okay, so we’ve made it sound quite simple there, but there’s definitely still a bit more to it than that. In today’s episode, we’re breaking down everything you need to consider before you pop a price on your next proposal – from how much to put aside for tax and how much you should be spending on expenses, to what profit actually is and why you need to have a “new zero”. This episode will definitely mean you want to sit down and rethink your finances, so make sure you’ve got your spreadsheet at the ready!
In this episode, we’re chatting about:
- The mistakes you’re probably making when setting your prices right now
- Why you need to think about more than just the amount of money you want to make each month
- Looking at your expenses from the point of view of a business owner
- Why having separate bank accounts or money spaces is one of the best things you can do
Jump straight to it…
[01:29] Big pricing mistakes
[03:44] Setting your income goals
[06:55] Understanding expenses
[13:32] Tax and bank accounts
[18:14] Profit planning
[19:57] Using our pricing calculator
