It's a frequent question among entrepreneurs: "How much should I charge?" And the answer entrepreneurs hate to hear: "It depends." But it really does depend. Not on what you feel like, not on what your neighbor charges — it depends on your cost price, the value you deliver, and what your market will accept.
Step 1: Calculate your real cost price
Before talking about price, let's talk about what it costs you to work. Because if you charge below your cost price, every client loses you money. And volume won't make up for it.
For a freelancer in service provision, the basic calculation:
Total annual expenses:
- Social contributions: X euros
- Office rent / coworking: X euros
- Insurance: X euros
- Accountant: X euros
- Software and subscriptions: X euros
- Travel: X euros
- Training: X euros
- Equipment (depreciation): X euros
- Desired compensation: X euros
Number of billable days per year: 365 days - 104 weekends - 25 vacation days - 10 public holidays - 15 sick days/training/admin = approximately 210 days.
Out of these 210 days, you'll only bill 60 to 70% (prospecting, admin, downtime). That's approximately 130 to 150 days actually billed.
Minimum daily rate = total annual expenses / number of billable days.
If your total expenses are 60,000 euros and you bill 140 days: minimum daily rate = 428 euros. Below that, you lose money.
Step 2: Analyze perceived value
Cost price sets the floor. The ceiling is the value perceived by the client. And this value often has nothing to do with time spent.
A consultant who identifies in 2 hours a 50,000 euro saving for their client can legitimately charge 5,000 euros for that intervention. The client isn't paying for 2 hours of work — they're paying for the result.
Questions to assess your value:
- What problem do you concretely solve?
- How much does this problem cost your client if they don't solve it?
- How much does your client save or earn thanks to your intervention?
- What is your scarcity on the market (specific skills, experience, certifications)?
Step 3: Observe the market (without copying it)
Study prices practiced by your direct competitors. Not to align with them, but to understand your client's reference point. If the market is between 400 and 800 euros per day for your type of service, positioning yourself at 250 or 1,200 requires solid justification.
Where you sit in the range depends on your positioning: generalist or specialist, junior or experienced, local or national.
Price presentation techniques
Anchoring — present the highest price first (your premium offer), then the alternatives. The client perceives the following options as reasonable in comparison.
Price by value — don't say "my service costs 3,000 euros". Say "for 3,000 euros, you get X which will allow you to Y, which represents Z euros of value over 12 months".
The 3 options — systematically propose 3 levels (essential, standard, premium). 60% of clients choose the middle option. Build your offers so the middle option is the one you want to sell.
When and how to increase your prices
Increase your prices every year. Inflation, your growing skills, your enriched experience — everything justifies an annual review of 3 to 8%.
For existing clients: notify 2 months in advance, explain the reasons (inflation, investments, service improvement). Most will accept. Those who leave for 5% less weren't your best clients anyway.
A price that's too low attracts difficult clients. A fair price attracts clients who value your work.