Most freelancers pick a day rate by asking a friend what they charge and knocking a bit off. That's how you end up busy and broke. Your rate should come from your own numbers first, and the market second.
Start with what you need to earn
Work it out in three steps.
- What you want to take home in a year, before tax.
- What it costs to be in business. Kit, insurance, software, travel, an accountant, training, and something set aside for the kit that will break.
- How many days you'll really be paid for. Take a year, then remove weekends, holidays, sick days, admin days and the days you spend finding work. For many freelancers the honest number is between 100 and 140.
Add the first two together and divide by the third.
An example, not a recommendation. You want to earn £38,000. Your costs are £7,000. You expect 120 paid days. £45,000 divided by 120 is £375 a day. Charge less than that and you are paying to go to work.
Then check it against the market
Your number tells you what you need. The market tells you what's normal for your role, your experience and where you work. Ask people a step ahead of you, look at union and industry rate cards where they exist for your role, and be honest about your level. If your number is far above the market, your costs or your paid days need attention. If it's below, put it up.
A day rate isn't the whole quote
The day rate covers your time on the day. Everything else is a separate line.
- Kit. Your equipment costs money to own. Charge a kit fee.
- Prep and travel days. Often charged at half your day rate.
- Overtime. Say how long your day is, and what happens after that.
- Expenses. Mileage, parking, materials, at cost.
- Usage. If you're a photographer, where and how long the images are used changes the price.
Listing these separately makes your quote look professional, and it stops your day rate being quietly stretched to cover them.
When someone asks for less
Don't drop the rate. Change the job. Offer a half day, fewer deliverables or a smaller kit list at a lower price. That way the client learns that your rate is your rate, and that less money buys less work. A discount for nothing teaches them to ask again.
If you do choose to work for less, because the project is good for you or the client is a charity, put your full rate on the invoice and show the discount. It protects your rate the next time.
Put it in writing
Before the job, send the rate, the hours, what's included, your payment terms and what happens if the shoot is cancelled. It takes five minutes and prevents most arguments.
Put it up every year
Your costs rise every year. Your rate should too. Tell regular clients a month ahead, in one plain sentence, and don't apologise for it.