How should I price my services as a small business or freelancer?
Work out your real cost per hour including salaries and overheads, add a healthy margin, then price by package or value rather than by hour. Offer two or three packages, raise prices for new clients first, and review every six months. Track time per client to check you are not undercharging. PalmGro Flow tracks time and profit per client.
Step 1: know your cost
Add up monthly fixed costs (salaries, rent, software, everything) and divide by the billable hours your team actually works. That is your cost per hour. Many small agencies discover they are charging below this.
Step 2: add margin
A healthy service business aims for a clear profit margin on top of cost. Without margin, there is no money for growth, bad months or your own salary.
Step 3: price by package, not hour
Clients understand "12 posts and 4 reels a month for ₹X" more easily than an hourly rate. Packages also reward your efficiency. See agency pricing packages.
Step 4: price by value where you can
If a website brings a client leads worth lakhs, the price can reflect that value, not just the hours.
Step 5: test and adjust
- Quote new clients at the new price first.
- If almost everyone says yes immediately, your price is probably low.
- If most say no on price alone, check your positioning and proof.
Raising prices for existing clients
Give 30 to 60 days notice, explain what has improved, and consider keeping loyal clients on the old rate for a few months. See profit per client to decide who needs a revision first.
How PalmGro Flow helps
PalmGro Flow lets you save plans and offers with standard terms, track time spent per client, and compare what each client pays with the work they take. Proposals use your saved packages so pricing stays consistent across the team.
Questions people ask
Should I show prices on my website?
Showing starting prices filters out poor-fit leads. Custom work can say "from ₹X".
Is hourly pricing bad?
Not always, but packages are easier to sell and do not punish you for working faster.
How often should I raise prices?
Review every six to twelve months, and raise when costs rise or demand is strong.
PalmGro Flow brings your team, clients, tasks, attendance and money into one place, on phone and computer. Try it free, no card needed.Set it up for your team in minutes.