Figured out after 8 months that my $15/hr rate was actually losing me money on most jobs

I was padding my time estimates to cover extra work, but when I finally tracked every minute for two weeks, I saw the padding itself was eating up 30% of my profit, and now I'm wondering how many other freelancers accidentally do the same thing without realizing it?

3 comments

3 Comments

shane17016d agoMost Upvoted

Hold on, is it really that big of a deal? I mean, you figured it out after eight months, that's not bad. Some people go years before they realize they're undercharging and just get stuck there.

sethm5816d ago

Nah man, it IS a big deal. I read somewhere that freelancers who don't raise their rates regularly end up losing like 20 grand a year just from not adjusting for inflation and skill growth. Eight months is a long time to be leaving money on the table, especially when you're starting out and every dollar counts. Plus, once you get stuck in a cycle of low rates, it's super hard to break out because clients get used to paying you that amount. You end up having to have awkward conversations later or just eat the loss. It's wild how fast that stuff adds up.

noraroberts16d ago

Woah, so you were basically working against yourself without even knowing it? When you tracked every minute, did you notice if the jobs you thought were your "easy money" were actually the ones bleeding you dry the most? I'm curious if the padding was worse on projects you hated or ones you thought you had down to a science.