So far, we have talked about why you should get paid upfront and how to know what to charge through project minimums.
Now, let’s answer the next question: “What Should My Project Minimum Be?”
Your minimum lives at the intersection of two questions:
What amount makes this work worth it to me?
What amount will the right clients still pay?
That sounds like an oversimplification.
The only way I’ve found the magic number is through experimentation. Here’s how I figured out mine.
When I launched my firm in 2020, I copied over the pricing I was using when I was at the firm I purchased clients from (do you want to hear more about that in a newsletter post? Let me know). My minimum was $449 for a personal tax return.
It’s what I knew; it wasn’t a “bad” amount, and the market definitely supported it.
Did I want to be paid $449 for a tax return? Absolutely! Because at the time, I was in growth mindset mode. So any return that came in the door was a good return to me.
Then I got busy. Busy for me was 60 hour workweeks January-April.
That’s when I started questioning whether the work was still worth the price.
So I raised my minimums. They were, and still are, listed publicly on my website. Part of me hoped the higher pricing would slow down the number of new client meetings. I also did not mind the extra work at the new minimum.
Funny how money makes things more bearable.
Not long after the first price increase, I discovered that potential clients had no problem paying that price.
This pattern continues today, where I will raise my minimum to reflect how much I want to be paid and what the market will support.
The minimums I am at today are because, through experimentation, I’ve found the rate I want to be paid and the amount clients are willing to pay. This level is constantly changing due to supply (me) and demand (the market).
Again, this sounds really simple. It kinda is, but it also can feel terrifying. That’s for another day.
Two notes:
Pricing isn’t permanent. You can always adjust it if something isn’t working or if you want to test a new strategy.
My minimums primarily apply to new clients. Existing clients are a different conversation, although I still implement significant price increases over time there too.
Thank you for reading.
Logan
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