How to Set an Hourly Rate for Freelance Design
As a new freelance designer, one of the most difficult decisions you'll make is how much to charge for your services. You must set a rate that is competitive enough to get business, yet also mirrors your talents as a designer. Consider your level of experience, market rates and the type of service you provide. Hourly rates are appropriate for beginners because you don't have to factor in the amount of time a job takes to complete.
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Instructions
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Conduct market research. Browse your competitor's websites for rate information, or call some local design companies that offer the same services. Ask what the company charges clients by the hour.
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Analyze your target market. If your target demographic includes established companies or higher income households, you may be able to charge more per hour than you would when your target market includes start-up companies or low to middle income households.
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Calculate what your hourly rate includes for your customers. If you charge an hourly rate that includes supplies and customer expenses, your rate should be enough to cover the items, plus net a profit. You may also charge an hourly rate in addition to the cost of supplies. In this case, your hourly rate may be lower since you won't use your fee to cover project materials.
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Set your rate. Use the information you obtain to determine an appropriate rate for your skill level. Ideally, your rate should be close to the average rates in your service area.
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Tips & Warnings
Set rates your customers feel comfortable with. If you charge much more than your competitors, customers may hire your competition to save money. If you charge much less than your competitors, customers may feel you are inexperienced or provide sub-par services.
