{"id":88,"date":"2022-06-02T10:23:00","date_gmt":"2022-06-02T09:23:00","guid":{"rendered":"https:\/\/freelancingintotheunknown.com\/?p=88"},"modified":"2022-06-07T10:51:30","modified_gmt":"2022-06-07T09:51:30","slug":"how-much","status":"publish","type":"post","link":"https:\/\/freelancingintotheunknown.com\/?p=88","title":{"rendered":"Deciding Day Rates"},"content":{"rendered":"\n

So, early doors is one of the hardest questions – exactly how much is the right amount to charge as a day rate?!<\/p>\n\n\n\n

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Like many people, I\u2019ve worked with a few consultants over the years and always had a fascination with the resulting invoices and what a) people charge and b) what organisations are willing to pay. I guess both of these speak to the fundamental curiosity of c) perceived value for money. And I\u2019ve seen a whole spectrum so far!<\/p>\n\n\n\n

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Also, I\u2019ll be the first to admit I\u2019ve always looked at day rates and thought \u2013 \u201chow much?! How can you justify that?!!\u201d <\/em>Part of my horror\/fascination was always feeling that I only got a tiny % of that, comparatively, as an employed member of staff. And therefore, they must just be taking the absolute mickey. Full disclosure, I should perhaps also mention that I don\u2019t think I\u2019ve had the greatest experience with consultants generally. No huge horror stories, just never really coming away feeling like it was fantastic.<\/p>\n\n\n\n

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So, it\u2019s an uncomfortable truth that I now have to look at exact question for myself and make my peace with the outcome.<\/p>\n\n\n\n

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So what am I trying to do?<\/mark><\/strong><\/h2>\n\n\n\n

My original goal when I started to think about this was establishing a day-rate I can use throughout the year to understand how to cost work. However, as I\u2019ve scribbled more and more calculations and added more and more question marks, I think I realise my goals are actually:<\/p>\n\n\n\n

  1. Establishing a day-rate I can use throughout the year to understand how to cost work<\/li>
  2. Ensuring I bring in at least what I can in paid employment to try and maintain my\/my family\u2019s current finances<\/li>
  3. Bonus aspiration \u2013 try and do number 2 in less days than I do now. With two small children, I\u2019d like to try and work only 3 days a week, and wherever possible, minimally over school holidays (remind me of this in 6 months\u2019 time so we can all cackle at my naivety, okay? Okay)<\/li><\/ol>\n\n\n\n

    But \u2013 how on earth do you approach it? I tried a few routes to see what the results were and here\u2019s a walk through of where I\u2019ve got to so far\u2026<\/p>\n\n\n\n

    First Go – Benchmark Employment<\/mark><\/strong><\/h2>\n\n\n\n

    First go \u2013 start with a wage because that must be a good benchmark, right? If my goal is to replicate at least a decent employed wage, then I\u2019ll start there and see how that works. I\u2019ve also got a complex about appearing greedy (see earlier point about my reaction to other people\u2019s day rates earlier in my career.) So at least this approach is grounded in real life.<\/p>\n\n\n\n

    Well, if you start with a \u00a340,000 job at 4 days a week, when you pro-rata it down, it equates to \u00a332,000 annually. That breaks down to \u00a32,700 ish monthly or \u00a3628 a week or \u00a3157 a day (if I keep to 4 days).
    So a day rate of \u00a3157, right?<\/strong><\/em><\/p>\n\n\n\n

    But before I committed on that one, I\u2019d already started appreciating (and having to shell out for in some cases), things that an employer would otherwise take care of. By no means complete, but here\u2019s some of the things that an employer covers that maybe you haven\u2019t always considered e.g.<\/p>\n\n\n\n