It’s important to know your worth as a business owner. Whether you charge per project or an hourly rate. You are a talented, smart and sophisticated entrepreneur and should be paid accordingly.
This type of pricing theory is based on the Value-Based Pricing model. If you haven’t read Breaking the Time Barrier. I HIGHLY recommend it!. The book is free and you can read it in about an hour.
Value-Based pricing is when you can prove the value you provide against the amount of revenue you can generate. It’s based on hard stats and results. Any client that respects you and your work, should not be surprised when you increase your prices.
When approaching a client with a rate increase, always be honest. “Sell” them on why you are worth getting paid a little more.
For instance, if you’re a web designer for e-commerce shops, there are certain things you can do to increase their sales — just from changing the colors or layout of the website.
If you can increase sales by $10,000 it’s fair to say you can charge up to $50,000 for your work (giving your client a 20% return on their investment — which is rare these days).