Hey everyone! I'm getting back into coding and have a friend who needs some software for his store to help with FinCEN compliance. I'm at the deployment stage now, but I'm unsure how to price my work. Do you typically charge by the job, by the hour, or use some other method? Any advice on what I should consider when quoting him would be super helpful. Thanks!
3 Answers
I usually charge by the hour and provide realistic estimates. Most times, I end up finishing quicker than planned and don't go over my estimates. I set my rates based on my skills — I won’t consider any project for less than $100/hour because it's just not worth my time.
I take my full-time salary, divide it by 1,000 to get my hourly rate, and have a minimum project duration of 40 hours. I also offer ongoing support after project completion, usually requiring a minimum of 10 hours per month at the same rate. Just keep in mind, working for friends can get tricky — they might think you’re doing them a favor rather than running a business, so be careful not to damage the relationship.
If you're just starting out, a good rule of thumb is to set your rate at double what you made at your last job. So, if your salary was $100k, you’d charge around $100/hour. If you're struggling to find clients, lower your rate until you get enough work, or raise it if you have too much. Also, charging by the hour gives you room to adjust for any extra work needed as projects progress.
Absolutely! It's all about finding that sweet spot with your rates. Experience definitely helps with estimating how much time things will really take.