What is it about time? Why are we afraid of it? We avoid it, deny it, surgically remove it, but like it or not, we are all in its grip. As Dylan Thomas pointed out, even as a youth:

Time held me green and dying

Though I sang in my chains like the sea.

Fern Hill  - http://wonderingminstrels.blogspot.ca/1999/07/fern-hill-dylan-thomas.html

So let’s get over our fear and look at time another way. The analysis of time use is a critical tool for the independent consultant. By recording it, tracking it, and studying it, we can capture that sense of self-awareness and craftsmanship so clearly demonstrated in Thomas’s poem.

I was asked the other day to explain in one minute or less how independent consultants determine their daily rate. Okay! The long story short is actually a formula:

Daily Rate = (Salary + Overhead) / Billable days + Profit

But if you are like me, Algebra was a long time ago, so perhaps a longer short story will be more meaningful.

The best antidote to a sleepless night is finding the price setting method that works best for you. It is essential that you receive fair compensation for your work so you can stay in business and rove from one successful project to the next, maintaining your independence and building your reputation.

You probably know how much your project is worth and what you should be paid for it but how do you price your services? Are we turkeys dutifully charging for the hours we work or troubadours joyfully plying our trade? Price setting is an art not a science. Here are several methods to consider.