Are Your Rates Right?

In a world where competition is fierce and inflation plays a crucial role, it becomes legitimate to question the rates that freelancers charge their clients. Are you overestimating or underestimating yourself? The question arises. 

  The dilemma often comes up when discussing rates, because yes, it can be a real headache. Most freelancers wonder whether they’re charging their clients too much or, on the contrary, not enough. Especially when the time comes to bid on a new contract. 

 They are aware that if their expectations of their clients are too ambitious, they run the risk of missing out on the coveted contract, and of having the wind knocked out of their sails by a more resilient competitor. On the other hand, if they don’t ask enough, chances are you’ll work for less than you’re worth, which is a bit like being cheated out of your money by your own fault. While working for less may work for a while, there’s bound to be a risk of frustration in the long run. Under such conditions, you run the risk of losing your customer, since dissatisfaction over a long period of time usually leads to a lower return. 

Whether your rates are charged by the hour, by the project, or on a weekly basis, the question is the same, and the problem applies to all fields. 

 To help you make sense of it all, freelance.ca has carried out a major study of freelancers’ finances by polling its members in various fields of expertise. Curious to know if your rates are adequate? Here you go! 

Right off the bat, we learn that the majority of freelancers manage to beat inflation due to the strong growth in self-employed income. 

Fast-Growing Hourly Rates! 

While in many employment sectors, workers’ salaries are not rising at the same rate as inflation, conversely, according to our study, self-employed workers’ hourly rates have increased by an average of 25% over the past two years. This is very interesting when you consider that in 2024, the consumer price index rose by 2.4%. 

What’s more, again according to our study, the majority of freelancers are satisfied with their financial situation, which is steadily improving. The hourly rate for freelancers is now $56/hour. As a result, over 75% of freelancers are satisfied or neutral about their income. 

Are You on the Right Track Financially? 

In addition to statistics, which are a good guide, it’s also important to estimate your rates according to your level of experience. You’re the best person to know what you’re worth, considering your years of experience and the right amount of experience for a project. As a guide, you can take a look at what your competitors are charging. Keep in mind, however, that every situation is unique. For example, you may accept a contract at a lower rate because a particular mandate could serve as a springboard for obtaining other, possibly similar contracts. It can also help you gain experience and fill a gap. 

Important to Think About 

 Before you embark on any bidding, take the time to think things through. Because, yes, there will always be beginners who will ask for less than you in order to gain experience or to work at any price. But think about the time you’ll be spending. The real question is whether you’ll be happy there, or whether you’ll spend your time regretting not having asked enough. You’re the best judge of that. 

 Bear in mind that people who are happy at work are the most successful in the long term. If you’re perfectly happy at work, if the tasks are in line with your goals, and if the contract will enable you to reach higher levels, there’s a good chance it’s tailor-made for you. In these circumstances, the rate is not necessarily the first element to be retained in the equation.  

Even if it’s relatively less than your initial expectations, it’s certainly worth it.  

To find out more about this part of the study, follow this link. It’s easy and free, just register.   https://www.freelance.ca/pages/market-studies