How can a light entrepreneur calculate a profitable price for their work? It is worth taking 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 thing to remember is that a light entrepreneur is responsible for their own social security, just like any other entrepreneur.
General price level in the sector
When setting prices as a small business owner, the easiest thing to do is to start by carefully researching the general pricing in your field. The easiest way to do this is to browse various discussion forums and industry-specific websites. Various social media groups in your field 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 fields, experience also plays a role in pricing: if you do website design and coding work, for example, a recent graduate may not be paid as much as a more experienced professional with a portfolio of references.
As a beginner, it may be wise to price your work more moderately, and as you gain experience and references, you should review your pricing. It is advisable to check your pricing from time to time to ensure that you are not selling your skills too cheaply at any stage.
Hourly or project pricing?
When examining the general price level in the industry, it is also worth finding out whether pricing in the industry is usually based on an hourly rate or whether a total price is agreed for the project. You can then calculate which option is more profitable and sells better.
For example, hourly pricing is natural in the construction industry, while both project-based and hourly pricing work well in website design. If it is difficult to determine the number of hours required for the work, it makes sense to give the customer an estimate and price the work by the hour.
Expenses and other charges to be taken into account
Light entrepreneurs are responsible for their own work-related expenses, such as work equipment. In addition, light entrepreneurs are responsible for their own social security and are subject to YEL (self-employed persons' pension insurance). Furthermore, light entrepreneurs do not accrue paid vacation days.