Becoming a HeyBryan Expert has so many perks: create your own schedule, work where you want, set your own rates … but wait; where do you even begin when setting your own rates? You want to be competitive in the market, but you also want to get a high return on your time. Here are some tips and resources on how to come up with the rate that’s right for you.
Know what an employer would pay you
The first step to determining your contract rate is to find out what an employer would pay you for doing the same job as a permanent employee. If you are already working in the industry, and you want to break out on your own in, then you likely already have an idea of your hourly value to an employer. But if this is a new venture for you, then you should check out some of these resources that can help you better understand the going rate for the services you are going to offer:
Account for additional expenses you will be responsible for
When you work as a permanent employee for a company, there are many expenses the company incurs that you don’t necessarily think of or see such as extended health benefits, life insurance, vacation pay, sick leave, business insurance, administrative costs, human resources, hardware, telecommunications, and overhead that keeps the company’s lights on.
On average, these expenses account for an additional 25%-35% over-and-above your gross salary. As an independent contractor, you will be responsible for managing these, so you should include a similar inflation to your hourly rate or project quote.
Oh, and don’t forget about taxes. At the end of the day, you need to make sure your net income covers all your expenses, so be thorough and do your research. Here is also a wage calculator that can help you understand additional factors and determine an estimated rate: http://www.urbanworker.ca/wage_calculator
Know what companies are charging for the same service
One of the great benefits of HeyBryan is that what you charge is what you get. When working for an employer, they charge the customer an inflated rate, and you only get a fraction of it. That is one advantage you have for booking jobs as an independent contractor. Know what the big guys are charging then compare it to what they are paying their skilled experts. If you find somewhere in the middle, then both you and the customer win.
Think about supply costs
Whether you are cleaning a one-bedroom condo, rewiring a 3,000 square foot home, or hanging multiple pieces that create a perfectly aligned wall art collage, you will have supplies that need to be used to complete the job. Don’t forget to include this in your rate and add a markup to the supplies that account for you going to the store to pick them out, ordering them online, or simply storing them until used.
Add details about yourself to your HeyBryan profile
Setting your rate is one aspect of getting paid what you deserve, but making sure potential customers know how great you are is another. That’s why HeyBryan has a profile section for you to include any information about yourself that helps you stand out. Whether it is about your experience or why you are passionate about what you do, make sure to take advantage of this opportunity to sell all the great things about you to your new network of customers.
It can seem daunting at first, but there are many perks and advantages to becoming your own boss. Whether you are just starting to build your business, or are a seasoned veteran, it’s always helpful to regularly review the market and the rates you are charging to make sure you are getting what you deserve. And don’t apologize for setting your rate at what your time and expertise are truly worth. We all know that we can hire cheap, quick, and great work, but you can’t get all three at once.