Pricing your services can be a tricky business. We often see questions like “What’s the average rate?” or “How much should I charge?” floating around, but the truth is, there’s no one-size-fits-all answer. It always depends.
Why “Average Rates” Aren’t Helpful
The idea of a standard hourly rate or per-episode fee is appealing, but it oversimplifies a complex issue. Factors like cost of living, experience level, and even your own confidence can drastically affect your pricing. What’s more,different clients have different budgets. What one person considers too expensive might be a steal for another.
A Real-Life Pricing Dilemma
Let’s look at a recent project we were offered to illustrate this point. The job involved updating course content,including 131 PowerPoint decks (approximately 5600 slides!) and 131 video files (about 110 hours of content), plus creating a new PowerPoint template. The budget was $10,000 to $20,000.
At first glance, it might seem like an easy gig, especially with tools like Canva and basic video editing software. But let’s break down the workload:
- Templates: Creating 11 templates, estimated at 2-3 hours.
- Slides: Updating 5600 slides, estimated at 4-12 slides per hour (a wide range due to the unknown complexity of the slides).
- Video: Syncing audio to 110 hours of video, estimated at 2-5 hours per hour of video.
This translates to a total workload ranging from 690 to 1954 hours! Even at the higher end of the budget ($20,000), the hourly rate would be between $10.24 (worst-case scenario) and $28.99 (best-case scenario).
And remember, this is just production time. It doesn’t account for admin tasks, communication, rendering, or project management.
Knowing Your Worth
This example highlights the importance of knowing your minimum acceptable hourly rate. It needs to cover your expenses, taxes, and provide a profit margin, with some buffer for unexpected challenges. In this case, even the best-case scenario fell below our minimum rate, so we politely declined the job.
Time Tracking is Key
Accurate time tracking is crucial for understanding how long tasks truly take. Don’t just track production time – include admin, communication, and other non-billable tasks. This helps you identify areas for improvement and avoid undercharging for new services.
Before You Offer It, Time It!
Don’t offer a service until you know how long it takes. Do practice runs to get a realistic estimate. This prevents unpleasant surprises down the line when a job turns out to be more complex than anticipated.
Pricing Your Podcast Services Course
If you’re struggling with pricing, check out my upcoming course, Pricing Your Podcast Services: Your Value. Your Worth. Your Rates. It covers everything you need to know to confidently set your rates and run a sustainable business.
The Bottom Line
Pricing is about more than just numbers. It’s about understanding your value, your workload, and your financial needs.Don’t be afraid to ask questions, track your time, and say no to projects that don’t align with your goals. Remember,you’re in control of your business!
