Setting a day rate when a client asks for hourly
A worksheet for turning an hourly habit into a day rate without losing money on long days.
By Nadia Brenner
Pricing
7 min read
Some clients want a day rate so they can budget. Some want hourly so they only pay for what they use. You can offer both, as long as the numbers line up.
Start from your effective rate
Look at last quarter: invoiced amount divided by all hours you worked for that client, billable or not. That is your real hourly rate. A day rate should beat it on an eight hour day.
Define the day
Write down what a day is: up to eight hours, including travel or not, and what happens past ten. Most disputes about day rates are disputes about the length of a day.
Billing
6 min read
Six minute increments: when rounding is fair and when it is not
Rounding is normal in professional services. The trouble starts when the client finds out from the invoice.
Invoicing
5 min read
What to put on an invoice so it gets paid in 10 days
Most late payments are not about money. They are about an invoice that is hard to approve.
Free for your first client, no card. Bring three years of Harvest or Toggl history across in about ten minutes.