Facebook is notorious for poor conversations about money! Between the posts asking for some fairly skill-based tasks to be completed for a grand total of $28 per hour (inc GST). And the ones explaining why a 10% increase after 4 years is reasonable… I think these are some prime examples of all the things that wreak sheer HAVOC on our pricing.

Issue 1

So many of us come to create a business after a short career in low-paid admin, hospitality, retail or caregiving roles. Because #patriarchy.. then add in a few years of unpaid labour in our own homes, a strong desire to please others and a need to hear validation, and you have a recipe for not really knowing what your time is worth.

Issue 2

We have looked to business coaches who sold the dream of “create your dream income and work flexibly. All you need to do is work out how much you want to make and then divide it by how many hours you want to work. Easy Peasy.” And THIS all comes undone fast when you realise that around 40% of your time will be spent on NON-BILLABLE work, you forgot about tax and those expenses added up way faster than you realised.

Issue 3

We see posts like the ones  I mentioned above, and see others jumping at the opportunity. And you start wondering if you are being unrealistic because ‘see, it can’t be that bad’. 

See, I know you are working HARD! And yet frustratingly… your bank account doesn’t seem to match the work you are putting in. The problem isn’t your dedication. It is the pricing structure that doesn’t actually give you the financial spaciousness to pay yourself AND have epic systems running in your business.

So what can you do about it?

1. Start really understanding your expenses! Don’t forget to allow some cash for a new laptop every few years, the little subscriptions, and the memberships. You will probably find that number is far more than you expected. But… now you know! And now you can cut the things that aren’t actually needed and adjust your rate to include the expenses that DO matter.
2. Allocate time for non-billable hours. The reality is the average office worker only does a few hours productive work a day (wild I know) and if we get really honest we spend more time either on non-billable tasks like invoicing, lose more time than we expect problem solving a task and we goof off more than we want to admit too. Don’t assume all your ‘available business time’ will be income-generating! Adjust the rate to accommodate around 40% of non-billable time.
3. Review how long things actually take. Much like the above… start building some buffers into task estimates. If you have been allocating 5 hours to a client project but it has actually been taking you 8 hours every time, then that gap is eating away at your profit margin! Check if any tools in your tech stack offer time tracking so you can do a bit of a review.
4. Now put it all together and adjust your rate so that you have a pricing structure that actually matches what you invest in your business in regards to time and money!

If this feels overwhelming, don’t stress. I’ve already done the heavy lifting for you with my Sustainable Rate Calculator—it handles all the formulas so you can confidently price your services based on real numbers, not guesswork.

Let’s make sure your rates actually pay you well. Grab the calculator here.

We HAVE to stop normalising business owners being ok with peanuts! And that starts by pushing back and actually charging a rate that allows for the reality of running a business (even if it feels uncomfortable).