In the world of self-employment, the pricing of work is calculated based on one of two types:
1. Hourly pricing
In it, the number of hours spent performing the required task is calculated and multiplied by the hourly rate of work. For example, if there is a project that needs five working hours and the cost of the hour is $10, then the project cost is $50.
This method is mostly not followed in some countries, and in my view it is not an accurate method for determining the price of self-employment, for the following reasons:
- Difficulty tracking work hours.
- Are the hours spent in research and thinking counted or not?
- What if you have a lot of experience and can get the difficult work done in little time?
2. Pricing for the entire project
In it, the pricing is calculated based on a fixed and predetermined amount in exchange for the complete completion of the project, or the completion of the required task.
This method is the most widely used method, and it is, in my view, a more accurate and more precisely identifiable method. The employer comes and presents the task he wants to complete, and a specific amount of money is negotiated in exchange for completing the task, the freelancer does the task and gets the money.
After you got acquainted with the pricing criteria and the difference between hourly pricing or the fixed price for the project or task… Now let’s learn how to determine the price.