Comments on: Rule of three

By: Ben Young

Ben Young — Mon, 21 Sep 2009 23:19:39 +0000

@Carl That’s the key thing, when a project goes over, or you realise you need to work even harder than before it’s quite disheartening. Then when things get tough you’re more likely to quit. It’s in everyones best interests for you to price more accurately.

@Sheldon Also a good one, thanks for sharing, people don’t often realise how little chargeable hours they will have when they start out.

By: Ben Young

Ben Young — Sun, 20 Sep 2009 03:42:20 +0000

Thanks for bringing that up, Value Based Fees are often to be a leap for people in the mindset of undervaluing their time, what I have found that this rule helps bridge the gap. I discuss this further in my pursuing the passion blog series so keep an eye out.

By: Miked

Miked — Sat, 19 Sep 2009 21:56:01 +0000

Try reading Value Based Fees by Alan Weiss. He dispells the theory that charging based on time is a good idea. It will change your perspective, and perhaps more importantly your income.

By: Sheldon (Marketing Consultant, Tauranga)

Sheldon (Marketing Consultant, Tauranga) — Fri, 18 Sep 2009 08:43:23 +0000

Yes! Here’s another way to do it:
How much do you want to earn a year? Eg $100,000
Divide that by 48 (working weeks in a year)
Divide that by 20 (number of chargeable hours in a week)
= $104.16/hour. Nice.

By: Carl

Carl — Fri, 18 Sep 2009 02:14:48 +0000

Great advice, when I was fencing contracting, it was easy to under quote a job, that hourly rate can shrink really quickly if you don’t allow enough fat in the system. and working for free is pretty discouraging!