Concept
1. The three models
| Model | How it works | Good for | Risk |
|---|---|---|---|
| Hourly | rate × hours logged | unclear scope, fixes, support | client watches hours; you earn less as you get faster |
| Project (fixed) | one price for a defined deliverable | clear scope: a dashboard, an automation | scope creep, under-estimating |
| Retainer | fixed monthly fee for a set of hours/services | ongoing MIS, monthly reports, maintenance | must define hours and response times |
Most Excel freelancers start hourly, move to fixed projects once they can estimate, and build retainers with happy clients.
2. Your base hourly rate
Target monthly income ÷ billable hours per month = minimum hourly rate
Example: target ₹80,000/month. Working 22 days × 6 hours = 132 hours, but only ~60% is billable (the rest is sales, admin, learning) → ~79 billable hours. ₹80,000 ÷ 79 ≈ ₹1,013/hour → quote ₹1,013–1,200/hour.
Then check the market for your city/platform and experience, and adjust. Don't price only by what others charge — price by what you need and the value you deliver.
3. Pricing a project
Estimated hours × hourly rate × buffer (1.2–1.5) = project price
Example: a monthly sales MIS automation — 6 h understanding & data, 8 h Power Query + model, 4 h dashboard, 2 h testing & handover = 20 hours. 20 × ₹1,200 × 1.25 = ₹30,000.
The buffer covers unclear data, extra meetings and revisions. Estimate in parts (as above) — one big guess is usually too low.
4. Value check — speak the client's language
If the automation saves the client's staff 20 hours a month and their cost is ~₹400/hour, that's ₹8,000/month saved. A ₹30,000 project pays back in under 4 months and keeps saving afterwards. Put this sentence in your proposal — clients buy savings, not formulas.
5. Retainers
Example: "Monthly MIS support — up to 10 hours/month, reports delivered by the 5th, response within 1 working day: ₹10,000/month." Define what happens to unused hours (usually they don't carry forward) and the rate for extra hours.
6. Terms that protect you
- Advance: 50% before starting, 50% on delivery (or milestones for larger work).
- Revisions: e.g. 2 rounds included; more = hourly rate.
- Scope: anything not listed is a change request (Lesson 2).
- Payment timeline: e.g. within 7 days of invoice.
- Taxes / टैक्स: Confirm current GST registration and invoice requirements for your location and supplies with a CA before quoting; thresholds and exceptions are not universal. / Quote से पहले अपने स्थान और supplies के GST नियम CA से जाँचें। CBIC registration guidance.
7. Raising rates
Increase for new clients first; for existing clients, give 30 days' notice and connect it to added value. Track your hours on every project — real data makes the next estimate and the next rate better.
Illustrative pricing: These are arithmetic examples, not market-rate benchmarks. ₹80,000 is assumed to be a revenue target; add business expenses and an appropriate reserve before treating it as take-home income. Payback of 30,000 / 8,000 = 3.75 months assumes the saved time is usable and excludes ongoing costs.
Common mistakes
Pricing every hour at your full income target without counting non-billable time. One-line estimates. No advance. Unlimited revisions. Competing only on low price.