Most people starting a business undervalue their rates because they only consider the hours spent “at the computer.” However, each billable hour must also cover the time spent on activities that aren’t directly paid for.
Price is not just a gut feeling or an average based on advertisements. It’s a calculation: how much you need to earn for your business to survive and thrive, divided by the hours you can realistically sell. Let’s work through this together.
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Step 1: Assess your annual costs
Add together: the net salary you desire (e.g., 8,000 PLN × 12), contributions and taxes (for many business structures in Poland, this can add an additional 30%–40%), business expenses (equipment, software, accounting, marketing, office) and a reserve of 10% for downtime and illness.
Step 2: Determine your billable hours
A year typically has around 250 working days. Subtract vacation (25 days) for holidays and sick leave (10), and of the remaining 215 days, only about 60% of the time is spent on client work — the rest goes to sales, administration, and learning. The result is approximately 1,000 billable hours, not 2,000.
Step 3: Calculate your minimum rate
For example: 96,000 PLN net + 38,000 PLN in taxes/contributions + 24,000 PLN in costs + 16,000 PLN reserve = 174,000 PLN ÷ 1,000 hours = 174 PLN/hour. Charging below this rate essentially means subsidizing your own work.
Step 4: Transition from hourly rate to value-based pricing
An hourly rate penalizes experienced workers (the faster you work, the less you earn). When you understand the scope of work, price by project: hours × rate × 1.2 (to account for revisions and communication), and for services that yield measurable outcomes (like increased sales or time savings) — price based on the value delivered to the client. Offer three tiers: basic, recommended, and extended; most clients will gravitate towards the middle option.
How to discuss pricing
- Present the price only after you’ve outlined the scope and expected outcomes, never at the beginning of the conversation.
- Instead of offering a discount, consider adjusting the scope: “In this budget, we will cover A and B; we can address C in the next phase.”
- Increase your prices for new clients by 10%–15% each year; give existing clients 2–3 months’ notice before implementing these changes.
A price that reflects reality isn’t “expensive.” It’s simply fair — to you as well.
Sources
- Polish Agency for Enterprise Development, “Report on the State of the SME Sector in Poland” (2024).
- Harvard Business Review, “A Quick Guide to Value-Based Pricing” (2016).
- ZUS / MF — current contribution rates and forms of business taxation.
Questions and Answers
How do I calculate my minimum hourly rate as a freelancer?
Add your desired net salary, estimated taxes and contributions (30‑40% in Poland), business expenses, and a 10% reserve, then divide the total by your realistic billable hours (about 1,000 per year). The resulting figure is the minimum rate you must charge per hour to avoid subsidizing work from your own
pocket.
What number of billable hours should I use when setting prices?
A typical year has 250 working days; after subtracting 25 days of vacation and 10 days for holidays and sick leave, you are left with 215 days. Assuming only 60% of that time is spent on client work, you end up with roughly 1,000 billable hours, not the 2,000 some calculators assume.
Why is pricing by project preferred over an hourly rate?
Hourly rates can penalize experience because faster work yields lower earnings. When the project scope is known, you can multiply the hours by the rate and add a 20% buffer for revisions and communication, or base the price on the measurable value the service delivers to the client.
What is the best way to discuss pricing with a potential client?
First describe the project scope and expected outcomes, then present the price; avoid mentioning cost at the start of the conversation. If a client asks for a discount, reduce the scope instead, and inform existing clients of any price increase 2–3 months in advance.
