Cookie Notice
By accepting all cookies, you ensure the best possible user experience. Read more about cookies and their use or change your cookie settings.

Pricing of the work of a light entrepreneur

Truster
·
January 19, 2024

What price should a light entrepreneur be paid for the work done? How to calculate a profitable price for your own work as a light entrepreneur? It is worth pausing for a moment to consider pricing, as there are many things to take into account when pricing the work of a light entrepreneur - the most important being that a light entrepreneur is responsible for his or her own social security, just like any self-employed person.

General price level in the sector

The easiest way to start pricing for a light entrepreneur is to do careful research on the general pricing in your sector. The easiest way to get started is to look online at various discussion forums and the websites of industry associations. The various social networking groups in your sector are also excellent sources of information when considering pricing.

The most important thing in a price level survey is to carry out the research as widely as possible, so that you get a comprehensive picture of the price level.

Your experience level

In some areas, experience also plays a role in pricing, and this too is worth looking into: if you are doing website design and coding, for example, a recent graduate may not be paid as much as someone who has been designing websites for several years and has references to show for the work they have done. 

As a beginner, you may want to price your work more moderately, and as you gain experience and references, you may want to reconsider your pricing. It is highly advisable for a light entrepreneur to review their pricing from time to time, so that at no point do they sell their skills too cheaply.

Hourly or project pricing?

When researching the general price level in the industry, it is also worth finding out whether the industry usually charges on an hourly basis or whether there is an overall price agreed for the project. And then do your own calculations to see which would be the more profitable and best-selling option.

For example, in the construction industry, hourly pricing is quite natural, while even in website design, both project and hourly pricing work. 

When pricing, it is worth considering whether the work is such that it is difficult to determine the number of hours spent on the job, in which case it makes sense to give the client an estimate of the hours spent and price the job per hour. If, on the other hand, it is a clear project and pricing per project is more profitable, then it makes sense to use the project as the basis for pricing.

Expenses and other charges to be taken into account

The light entrepreneur is responsible for his or her own work-related expenses, such as all the tools and equipment needed. In addition, the light entrepreneur takes care of his/her own social security and is liable to the YEL, just like any other self-employed person. In addition, the light entrepreneur does not accrue paid holidays. 

It is really important to include the costs of any YEL insurance premiums, sickness and holidays in the pricing.

In addition to these, you should take into account any costs you may incur for your own work. Light contractors in the construction sector should agree with their clients that any material costs (e.g. screws and nuts) will be charged in addition to the work. If, on the other hand, a light contractor needs a computer for his work, it is worth including the cost of the computer in the price.

So, as a light entrepreneur, you should at least take all of these into account:

  • costs of materials and supplies
  • YEL insurance contribution (if YEL-obligated)
  • health insurance contribution
  • billing service fee
  • computers, phones and connections
  • possible illnesses and holidays
  • travel expenses
  • workspace
  • Marketing
  • trainings

For pricing purposes, you should make calculations, for example using Excel or a similar spreadsheet tool. You can also use Truster's handy calculators when thinking about pricing.

What to offer a light entrepreneur for work done?

This list of tips is also useful for the contractor when considering what kind of compensation to offer to light entrepreneurs. In addition to this, the contractor should bear in mind that the company saves quite a lot in employer costs when employing light entrepreneurs. This saving should be at least partly channelled into the fees of the light contractors, shouldn't it? 

Did you like the blog?
You'll probably like these too:

ABC of the light entrepreneur

What is the difference between gross and net pay?

Read the story >
ABC of the light entrepreneur

What does light entrepreneurship mean?

Read the story >
ABC of the light entrepreneur

Can a light entrepreneur get unemployment benefit?

Read the story >
ABC of the light entrepreneur

Can an unemployed person be a Light Entrepreneur?

Read the story >
ABC of the light entrepreneur

Summer job 2024 for students

Read the story >
ABC of the light entrepreneur

How does the OP light entrepreneur service differ from Truster light entrepreneurship?

Read the story >
ABC of the light entrepreneur

Is light entrepreneurship profitable?

Read the story >
ABC of the light entrepreneur

Who can become a Light Entrepreneur?

Read the story >
ABC of the light entrepreneur

Is a light entrepreneur a self-employed person?

Read the story >
ABC of the light entrepreneur

Is the employment condition fulfilled in light entrepreneurship?

Read the story >
ABC of the light entrepreneur

Is a Light Entrepreneur an entrepreneur?

Read the story >
ABC of the light entrepreneur

Who is light entrepreneurship suitable for?

Read the story >
Support article

What is YEL insurance?

Does a light entrepreneur need YEL insurance? How do I get YEL insurance?

Read the story >
Blog

Daily allowances, mileage and meal allowances 2024

Do you want to know the amounts of the expense allowances for 2024? Read this article to get the latest information on daily allowances, mileage allowances and meal allowances for this year.

Read the story >
Support article

The trump card - what would be good to know?

What is a Valuable Card and what is it for? What is a Valvetikortti for a light entrepreneur and can you order one through Truster?

Read the story >
Blog

A social influencer or influencer as a light entrepreneur?

The career paths of many of our influencers have started as light entrepreneurs. Light entrepreneurship is a low-threshold option to try entrepreneurship and charge for partnerships.

Read the story >
Support article

Pricing of the work of a light entrepreneur

It is worth pausing for a moment to consider pricing, as there are many things to take into account when pricing the work of a light entrepreneur.

Read the story >
Blog

How to choose the right billing partner?

When a company employs several people as light entrepreneurs, it may be time to consider working with an invoicing service.

Read the story >
Blog

What should you know about employing a light entrepreneur?

Has your company considered employing a light entrepreneur? If so, good!

Read the story >
Support article

How do I know if my customer has paid the invoice?

How do you know if your customer has paid the invoice you sent them? You can find out the status of your invoice in the following ways:

Read the story >