Ethical Pricing: Calculating Your Burn Rate & Finding Your Day Rate

Pricing for any creative work (or any work for that matter) requires you to understand your costs first. So that's where we start: figuring out how much you need to survive (your burn rate) and scaling up from there to determine your ethical pricing day rate.

1. Ethical Pricing Finding Your Burn Rate &
 Calculating Your Day Rate
2. Jim True Support Lead & Community Manager
 Pods Framework http://pods.io | @podsframework http://jimtrue.com | @jimtrue
3. What do you need to work? ƞ Ƅ ƃ
4. Calculating Burn Rate ƞ Ƅ ƃ 1,000 200 200 100 1,500 200 100 300 200 200 200 600 $2,400
5. Burn Rate = Bare Minimum $2,400
6. Burn Rate = Bare Minimum $2,400 Monthly $100 Daily / 24 $12.50 Hourly / 8
7. Ethical Pricing Rate > Burn Rate $3,000 Monthly $125 Daily / 24 $15.63 Hourly / 8 { + 25%
8. Ethical Pricing Rate > Burn Rate $3,600 Monthly $150 Daily / 24 $18.75 Hourly / 8 { + 50%
9. Ethical Pricing Rate > Burn Rate $4,800 Monthly $200 Daily / 24 $25.00 Hourly / 8 { + 200%
10. How many days do you want to work? 365
11. Calculate Days Like a Business 365 52 x 5 = 260 - 26 (10%) = 234 Ƅ - 26 (10%) = 208 - 26 (10%) = 182
12. Calculate a New Day Rate 182 Working Days $4,800 Monthly $57,600 Annually $57,600 / 182 = $316.48 Daily Rate
13. You have to determine for yourself:
 What’s your Burn Rate? What’s your ethical markup? How many days do you want to work?
14. Questions?
15. Jim True Support Lead & Community Manager
 Pods Framework http://pods.io | @podsframework http://jimtrue.com | @jimtrue
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