Insights / For Fraci
How much should I charge for a fractional gig?
Most finance professionals underprice their first engagement, then spend two years trying to climb back. Here's how to build your rate from the numbers up, then say it out loud.
It's a strange thing. People who have spent years pricing other businesses' products, negotiating with banks and challenging budgets will freeze completely when asked for their own day rate. They go low "to get started", apologise for the number before the client has reacted, and discount in the same breath. Let's fix that, so you can set your rate with confidence and conviction.
Equally, don't go too high. It's a new business, you're unproven, and you want to demonstrate value for money immediately.
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Does my day rate look high?
Compare apples to apples. A permanent salary buys 52 weeks of pay a year, including annual leave, bank holidays, sick days and quiet weeks when the volumes drop. A day rate requires you to be productive every day you bill, which is of more value to a business, and something you shouldn't be afraid to stand behind.
Step 1: work out how many days you'll really bill
| Days | |
|---|---|
| Weekdays in a year | 260 |
| Less: holidays and bank holidays | (33) |
| Less: business development, admin, CPD (about 20%) | (45) |
| Less: gaps between assignments and sick days | (52) |