Wrestling with how much to charge for the services you provide is an age-old dilemma that many businesses struggle with daily.

Charging by the hour is probably the simplest method. Keep track of the hours you have worked on a project, as many employers will want a detailed breakdown so that they know they are getting their money’s worth. If the project is small, won’t last very long and is very specific, then charging by the hour is probably your best option. It’s also a good option when you’re unclear about the real scope of a project and feel it could mushroom into something that takes you twice as long.

Charging by the project is the best option when it is long term or clearly defined. The client then knows what to expect up front, and you have an idea in your head of how long it should take you to complete the project.

To set a rate for a project, you need to assess it accurately. Decide what the project entails, what problems you need to solve and how long you think it will take to do a thorough job. Don’t forget to add in some time for unseen problems – few projects ever go exactly according to plan. Then decide what your hourly rate will be. Only you know your experience in the field, your monetary needs, and your expertise for each individual project. Use all these criteria to set a rate that is fair to you and fair to your client, having thoroughly checked out the rates of your competitors.

Setting rates and bidding on projects takes some understanding and assessment. You need to understand and assess the projects, and your needs and talents. There is no perfect answer; bidding an hourly rate or by project really depends on you, and the project.