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 charging, not on what the neighbor charges — it depends on your cost of production, the value you bring, and what your market will accept.
Step 1: Calculate your real cost of production
Before talking about price, let's talk about what it costs you to work. Because if you charge below your cost of production, every client loses you money. And volume won't make up for it.
For a freelance service provider, the basic calculation:
Total annual expenses:
- Social contributions: X euros
- Office/coworking rent: X euros
- Insurance: X euros
- Accountant: X euros
- Software and subscriptions: X euros
- Travel: X euros
- Training: X euros
- Equipment (depreciation): X euros
- Desired income: X euros
Number of billable days per year: 365 days - 104 weekends - 25 vacation days - 10 public holidays - 15 sick days/training/administrative = approximately 210 days.
Of these 210 days, you'll only bill 60 to 70% (prospecting, administrative, 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 of production sets a 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 savings 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 evaluate your value:
- What problem do you solve concretely?
- 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 in the market (specific skills, experience, certifications)?
Step 3: Observe the market (without copying it)
Study the prices charged 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 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 raise your prices
Raise your prices every year. Inflation, your improving skills, your enriching experience — everything justifies an annual revision of 3 to 8%.
For existing clients: warn them 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.