Dan Mall

If all of you have roughly the same level of experience and similar-caliber portfolios, who do you think the client will choose?

Most likely, it’s the person with the lowest rate: in this case, Tobias, at $80/hour.

Consider this scenario. For one hour of work, you’ll receive a nice crisp C-note (FIG 1.3).

In return, you’ll give up:

an hour of playing your new video game
an hour of playing with your kids
an hour of feeling the burn at the gym
an hour of picking up crochet as a hobby
You get the idea. Is that hour a fair trade to you? If so, $100/hour fits the bill. If you’d rather spend that hour getting chiseled calves, then $100/hour is too low; you’ll likely need to increase that rate.

While you’re weighing your proposed trade, your client is considering the same question: Is what I’m getting better than what I’m giving up?

People want prices up front