Once you know your minimum hourly rate, you still have to decide how to present it. Clients respond differently to different pricing formats, and each format shifts risk between you and them.
These examples use an $80 hourly rate to keep the math easy to follow.
Hourly
You bill for the time you work. The client carries the risk if a task takes longer than expected. It suits open-ended work, support, and projects where the scope is unclear. The downside is that it rewards slow work and caps what you earn by the hours in your week.
Day rate
A day rate bundles a working day into one price, usually your hourly rate times 8. It suits on-site work, workshops and contracts where you are booked for whole days.
Day rate
$80.00 × 8 hequals$640
Five-day week
$640 × 5equals$3,200
Project price
A fixed price for a defined outcome. You carry the risk of overruns, but you also keep the benefit if you work faster. It needs a clear scope and a buffer for surprises.
Retainer
The client pays a fixed amount each month for an agreed number of hours or an agreed level of availability. It gives you predictable income, which is worth a small discount.
At full rate
20 h × $80.00equals$1,600
With a 10% retainer discount
$1,600 × (1 − 10%)equals$1,440/mo
Agree up front what happens to unused hours. Common options are that they expire each month, or roll over for one month only.
Choosing
- Unclear scope or ongoing support: hourly.
- Workshops, audits or on-site days: day rate.
- Well-defined deliverables: project price.
- Clients who need regular help every month: retainer.
Tip: Whatever the format, calculate the effective hourly rate afterwards. If a project price or retainer keeps working out below your minimum, it needs repricing.