Understanding Your Costs: The Foundation of Pricing
Before you even think about what you’ll charge clients, you need a crystal-clear picture of your expenses. This isn’t just about the obvious things like materials or software subscriptions. Think about everything involved: rent or office space costs (even if you work from home, factor in a portion of your utilities and internet), your time (including administrative tasks), marketing expenses, professional development, and even software licenses. Create a detailed spreadsheet breaking down all your costs, both fixed (rent, subscriptions) and variable (materials, travel). Knowing your exact costs is the cornerstone of profitable pricing.