Sylvan Franchise Blog

How To Determine Your Rates

Posted by Laura Dunn on May 29, 2015

One of the trickier aspects of starting my business was working out what to charge. Working in the communications industry, the amount of information discussing how you should price your services and the detail that should be included was quite overwhelming!

I did lots of research into the industry and spoke to other professionals about what they are charging. It seems to be a closely guarded secret and perhaps even a taboo topic! 

So how did I work out my rates?

Up to date rate lists: Using rate lists as my starting point, I was able to see what individuals were making from various publications and organizations. This helped me get my head tuned to what I should be aiming towards. 

Hourly and daily rates: Whilst looking at the rate list I worked out my hourly and daily rates. I based my calculations on my experience, body of work and the cost of my monthly expenses. Ultimately, I have found working out what to charge is a gut feeling and it is important not to undervalue yourself. Be realistic when thinking about the type of job you will be pricing for.

Know when to increase: There will come a point (and hopefully early on!) when you’ll need to increase your rates. There’s no right or wrong time to do this, but from my experience, you will find that there will be some jobs that you will need to price more for.

Talk to others: Take the time to speak to other individuals in your industry. They may be starting out or established in their work, but it is important that you ask for advice to get a feel for the industry you are working in.

How did you work out what to charge? Share your thoughts!