How do you work out your hourly rate normally?
For our we work out all of our annual running costs including rent, insurances, wages, finance / machine repayments etc. etc. etc. everything excluding materials and consumables which are charged in with the jobs. .
So, for argument sake it’s £36k operating costs, I personally then divide that by 48 weeks (allows for your holidays) which is £750pw, then divide that figure by 20 hours, which in reality is a fair guess on your productive / actually earning money time per week [the rest is usually phone calls, enquiries, procrastinating, making tea, lunch, popping to the post office, and so on… all the stuff that doesn’t always provide a direct income]. That makes £37.50 per hour, I’d probably round it to £45 p/h for the sake of it and to build in a little proofing against cost increases… plus your materials with mark up on them.
If you charge out just those 20hours you have covered your costs and wages, if you work 30 paid for hours… now you’re earning!
With the rise in electric costs etc. we’re now around £60p/h +vat, you need to charge what you need to charge. Even if you only need £20 an hour, charge £40 anyway, you’re still cheaper than the guy charging £45 p/h and you’re making plenty of profit for those rainy days or unexpected bills.
All that said, you ought to have agreed a price before starting the job.