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One hour can be a small fortun...
Your hourly rate ??...
Never over Budget again ??...

Hi Olivia

ValueTime helps you to keep your business numbers under control.

Do you know how much impact one billable hour per week can have to your bottom line? On your insights page (on the bottom) you can see, how much impact one single hour can have.

Check it out

Jonas Kamber
Founder, ValueTime

You can reply to this address or email at info@valueTime.io

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Change email settings or unsubscribe from ValueTime Onboarding.

Hi Olivia

Should You Increase Your Hourly Rate?

Not necessarily.

You know your clients and prospects better than everyone else. Losing clients is something you don't want, especially if you're just starting out.

First, ask yourself: Are your current projects interesting to you or do you need to accept every project request that comes your way?

You should keep your current rates if either of these situations applies to you:

You can't afford to fire a bad client
You can't afford to decline a project

If one of these is the case, you should invest in getting better clients, which means keeping your current rates for now. Otherwise, the question is how much to raise your rates.

Effects of higher rates

When you can afford to decline jobs you don't like, how many of your clients would stay if you doubled your rates? Every single client would leave, right? No. I'm sure some would stay.

Let's say 50% of your clients leave when you double your rates. Would this be bad? No, of course not. You would have the same income with only half the effort. That's simple math. Take your client list and mark the clients, which you think would stay. This will help you to find out, how much you can raise your rates. The goal should be to keep the amount of income and make time to grow from there.

This is how increasing your rates could affect your business:

High-paying clients will refer you to more high-paying clients
You have time for fun side projects
You have more time to work for new clients

Don't believe an increase of 100% would work for you? It's okay to take baby steps at first. Try increasing your rates by 20%, 10%, or as little as 5%. This will lead to the same effects as doubling your rates, but with a smaller impact.

Are you thinking about raising your rates or have you increased them recently? Please share your thoughts by replying to this email.

Jonas Kamber
Founder, ValueTime

You can reply to this address or email at info@valueTime.io

Would you like to change your email preferences?
Change email settings or unsubscribe from ValueTime Onboarding.

Hi Olivia

Let''s talk about accurate estimates.

Naturally, new clients are concerned with the total price of a project. This is normal. With this in mind, there are different strategies to help you build a comprehensive offer.

Most people break down the necessary tasks and estimate how long each task will take. Pretty easy and super accurate, right? Nope! In the beginning of my own freelance experience, I was wrong almost all the time. So, I found a new strategy that made my estimates more accurate.

Multiply your estimate

At the web agency where I once worked as art director, we always underestimated the time in our proposals. The numbers we needed were there because we had proper time tracking in place. We went through finished projects and checked how much longer it took us on average.

We came up with a pricing strategy of hours x 1.6, meaning that it took us an average 1.6 times to complete a project than we expected. From then on, we multiplied the hours we thought it would take to complete a job by 1.6. So, a 100-hour job became a 160-hour job, and so on.

I used that strategy a lot before I came up with something that worked better for my business.

Estimating days, not hours

The simplest solutions are usually the best. Think about a certain task that takes you 1 hour. Do you have something in mind? Take a moment and get really clear on a specific task that takes you an hour to complete. It's critical to have a certain task in mind to get my point.

Do you think you can do a similar task in a row, 8 times in 8 hours? I know I can't.

When we estimate in hours, we think about the most productive time slot we have. We don't think about our average efficiency throughout the day. When you start to estimate tasks in days, you get much more accurate numbers. If something takes less than a day, combine it with something else.

There is an additional benefit to this form of estimation: your client also shifts his mindset away from hours to days.

Sometimes, it's hard to structure smaller projects in a way that allows you to estimate in days. In this case, try using half-days instead.

Will you implement this strategy the next time you have to estimate a project?

Jonas Kamber
Founder, ValueTime

You can reply to this address or email at info@valueTime.io

Would you like to change your email preferences?
Change email settings or unsubscribe from ValueTime Onboarding.

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