How to price your services as a freelancer or consultant

Most freelancers and consultants undercharge, especially when starting out. Pricing too low is not just bad for your income — it can also undermine how clients perceive your value. Here is how to approach pricing more strategically.

Know your minimum viable rate

Start by working out what you need to earn. Calculate your annual personal expenses, add business costs (software, insurance, tax, equipment), factor in that you will not bill every hour you work (aim for 60–70% billable time as a realistic target), and divide by your intended working hours. This gives you the floor below which you cannot afford to work.

Research the market rate

Find out what others in your field charge. Sources include freelancing platforms, industry surveys, professional associations, and conversations with peers. Market rates vary significantly by specialism, experience, and geography — a London-based senior UX designer commands a very different rate to a junior designer working remotely from a lower-cost region.

Price on value, not just time

The most profitable approach to pricing is to price based on the value you deliver to the client, not the hours you spend. A logo designer who charges £500 for a logo might take 5 hours — that is £100/hour. But if the logo helps a company build a £1m brand, the value is far higher than £500. Value-based pricing requires confidence and a clear understanding of your clients' outcomes.

Test and adjust your rates

Raise your rates when you are consistently winning work without much negotiation (a sign you are underpriced), when your skills or reputation have grown significantly, or when you take on a new type of higher-value client.

How to handle "can you do it cheaper?"

When clients push back on price, do not automatically discount. Instead, offer to reduce the scope. If they want a lower price, they get less work. This protects your margin, sets a clear precedent, and forces the client to decide what they actually need.