‘Just starting out’ is relative. He could be an industry vet and is only just getting into freelance for the first time.
I’m assuming the opposite is true here, however. It all comes down to your skill level. Talented people charge more than people that aren’t as talented. While £25/hour is low, it’s not necessarily out of line with his peers.
You’ll need to take into account cost of living as well. It’s not so black and white.
Having said all of that, James: if you start one more thread asking about how much to charge I am going to blow up the internet.
I have had people tell me that most people they meet charge £40 an hour here in UK, however most of the people I have met charge between £20 and £30.
I have heard people say big figures, but really have I found it to be the case is what I am saying. I have just quoted a client at £25 an hour and the client asked me if I could do it for £20. So it just goes to show that even £25 is to expensive for some people.
@JamesBarnsley Gray is right with his points also.
Perhaps that client is cheap? I agree with negotiating but that still seems a bit low. My rates are completely private but an average graphic designer would be charging anywhere from $75+. I would assume that a developer could charge just as much.
Yes, no I totally agree with the high rates etc, why would I agree to my own poverty?
But it just depends whether there are clients / people out there willing to pay it, if there are I have not meet any of these clients yet however I am quite new to the game.
Are you working freelance/whitelabel and hence hourly? (As in is someone reselling your work?) If so, £20-25 is okay for front end.
If you’re charging that to direct clients – as in customers coming to you directly to do their website then in my opinion you’re charging wrong.
What you need to be charging the customer is the value of the project. What I mean by that is charge them on the basis of their return and their size, rather than on an hourly basis.
Sure – build your hourly rate into a quote to make sure it’s covered. But for example, take Amazon and let’s pretend they are looking for a designer/developer to redo their website.
How much do you charge? 1000 hours x 25 so £25000? Or, do you charge them £20 Million.
You charge £20 million because – A: they have an expectation about what they should be paying for a project.
B: They are looking for a return on that investment and a redesign may generate them £40 Million in one day. Which makes the £20 Million initial investment peanuts in comparison to their expected return over a year.
I would advise you to move towards this pricing model when doing work directly for clients to make sure that you’re making a profit related to the value you’re providing to them – not just your hourly rate.
As always – if your quote is way over priced for their expectation or budget you can always come down and negotiate. What you can’t do is negotiate upwards!
I wouldn’t quite say that explains it… profit, or at least a figure that at the end of the day you make above and beyond your costs, should be a part of your basic hourly calculation. At the end of the day, what you charge is ultimately what value you bring to the table.
I’m with Andy and his position on the project. I learned the hard way why charging hourly is a bad idea in most cases.
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