Determining your freelance rates as a designer in the Philippines involves several factors, including your skills, experience, the type of design work you offer, and the local market. Here’s a step-by-step guide to help you find your rates:
Assess yourself #
- Evaluate Your Skills: Consider your expertise and the quality of your work. More experience and specialized skills can justify higher rates.
- Assess Your Expenses: Calculate your living and business expenses. Your rates should cover these costs and allow for savings.
- Research Your Competitors: Check what other designers in the Philippines charge for similar services. Freelancing platforms and local design associations can be helpful for this.
Determine your desired income #
Decide how much you want to earn annually. This should include your income goal, taxes, and business expenses. There is no absolute value for this because it depends on your experience and skills. You can look online on websites like Indeed, JobStreet, or Payscale for base rates and adjust your rates from there.
Let’s say your target income is Php 20,000 a month. This represents the national average, so aim not to go lower than this. However, keep in mind that you’re not limited to 20,000. You can increase your rates as you gain more experience.
Calculate your hourly rate #
- Divide your annual income goal by the number of billable hours you plan to work in a year. Consider that not all hours will be billable, as you’ll have administrative and non-client-related tasks.
Assuming 160 hours per month, you can calculate the hourly rate as follows:
Hourly Rate = Monthly Rate / Number of Hours Worked in a Month
Let’s calculate it for a 20,000 PHP monthly rate:
Hourly Rate = 20,000 PHP / 160 hours
Hourly Rate = 125 PHP per hour
So, if the monthly rate is 20,000 PHP and the person works 160 hours in a month, the hourly rate would be 125 PHP per hour. Please adjust this calculation if the number of hours worked in a month is different in your situation.
Considerations #
Consider the Type of Work
Different design services may command different rates. For example, logo design may be priced differently from web design or branding projects. (Do your research using the links mentioned above)
Local Market Factors
Be aware of the average rates for designers in your area. Rates can vary depending on the city or region within the Philippines.
Value-Based Pricing
Consider the value you provide to clients. If your work consistently generates substantial results for clients, you can justify higher rates.
Pricing Tiers
Create tiered pricing options that cater to various client budgets. This gives clients flexibility and allows you to work with a wider range of clients.
Test and Adjust
Start with your calculated rate, but be open to adjustments based on client feedback and market demand. You may find that you can increase your rates as you gain experience and reputation.
Be Transparent
Clearly communicate your rates to potential clients. Transparency builds trust and avoids misunderstandings.
Track Your Time and Expenses
Keep meticulous records of the time spent on projects and any related expenses. This helps you assess whether your rates are covering your costs and generating a profit.
Periodic Rate Reviews
Regularly review your rates and adjust them as needed. As you gain experience and build a strong portfolio, you can often command higher rates.
Conclusion #
Remember that finding the right rate is an ongoing process. It may take some time to strike the right balance between your skills, market demand, and your financial goals. Be flexible and willing to adapt as your freelance career progresses.
