It is the question that stops everyone: what do I charge? Most people answer it by looking at what everyone else charges and shaving a bit off. That is the fastest way to work a lot and earn little.
The wrong way: starting from the competition
A competitor's price reflects theircosts, their clients and their position — not yours. Copying it (and discounting to «break into the market») traps you: you attract the people shopping on price, and those are the first to leave the moment someone cheaper shows up.
Start from what one hour of your work really costs
Before you decide what you are worth on the market, you need to know what an hour costs you. Count in:
- your monthly fixed costs (rent, tools, software, vehicles, and what you set aside for taxes and social contributions wherever you operate);
- the hours you don't bill but genuinely work (quotes, travel, admin, chasing new clients);
- the margin you decide to take, not the leftovers at the end of the month.
Only by dividing your costs by the hours you really bill do you find your floor: below that number you are losing money, even when it feels like you are earning. In practice, your price floor comes out of your break-even point.
The minimum price is not the right price
Break-even (the point where you stop losing money) is the floor, not the goal. The right price sits higher: it depends on the resultyou deliver, not the time you spend. A quote you put together in half an hour that saves the client €5,000 is worth its price — not «half an hour of work».
How to raise prices without losing clients
Here is the number that changes everything. When you raise your price, you can afford to lose some clients and still bring in the same money. An example:
- You raise your price by 20% (from €100 to €120).
- You only need to keep 83% of your clients to make the same revenue (100 ÷ 120 = 0.83).
- Every client you keep above that 83% is extra income — with less work and more time for your best clients.
In plain terms: if raising prices loses you the most difficult and least profitable clients, you often win twice.
How to announce the increase
- Give notice early, with a precise date.
- Talk about what they get, not what it costs.
- Offer long-standing clients favourable terms for the switch.
If you want, Vanteo works out these numbers (hourly cost, break-even, how many clients you can afford to lose) from your real figures, and tells you the price to aim for. See also: how to write a quote clients say yes to.