Newer designers often ask me what they should charge. As much as I want to I can’t give specifics, as I try to explain with this simple formula.
Expertise: No-one knows better than you how much talent you have or how much you need to earn to makes ends meet.
Specification: All design projects have their differences.
Time: Clients will expect to pay more for delivery on a tight deadline.
Demand: I don’t pitch, but I know some designers do. If you spend a lot of time pitching for projects you never get, your quotes will need to reflect the fact that a lot of your work goes unpaid.
Economy: If a client’s local currency takes a hit, and it’s a project you particularly want to work on, lowering your rate might be the answer.
Location: There was a rare instance when an overseas client was reluctant to hire me because we couldn’t meet face-to-face. That doesn’t affect what I charge, but it might affect what a client is willing to pay.
“If you’re a studio and trying to work out what to charge clients for projects then a good (but very basic) rule of thumb is to allocate a third of the project cost to time spent on the project (ie salary allocation), a third to fixed costs (ie studio rent, amenities, legal, accounting etc) and a third to profit. For example, if the cost of your team allocated to the project is £5,000 then you should charge roughly £15,000 (£5,000 to cover the cost of the team + £5,000 to cover fixed costs + £5,000 as your profit).”
A few resources: