Can We Talk About Day Rates?

(Because most of us are making it up as we go.)

Let’s be honest - if you’re a freelancer or contractor, there’s a good chance you picked your day rate based on what you heard others were charging.

Not because it was calculated.
Not because it covered your costs.
But because someone once said “£350 a day is pretty standard” - and that felt safe.

So you ran with it.

💸 The problem with ‘standard’ day rates

We’ve seen day rates ranging from £150 to £850+ - and guess what?
They’re all “normal” depending on the person, the industry, the deliverables, and how confident someone’s feeling that month.

The issue isn’t that people charge day rates.
It’s that most people:

• don’t know how they landed on theirs

• don’t know if it’s enough to cover their costs

• and aren’t sure when (or how) to raise it

You’re not alone if you feel like you’re guessing.

🤔 Should you even be charging day rates?

Here’s what we tell our clients:

Day rates can work well when:

• The work is hands-on and time-based

• You’re in and out quickly (e.g. one-off strategy, consultancy, design, etc.)

• It’s simple for the client to understand and approve

But they’re not ideal when:

• The scope always stretches

• You’re being paid for time but expected to deliver big outcomes

• You’re secretly working longer than you log

• The client thinks “1 day = I own you for 8 hours”

If you’re starting to feel boxed in by your rate, or stuck doing more than you’re paid for - that’s a sign it might be time to rethink your model.

🧮 What your day rate should actually cover

A sustainable day rate needs to factor in:

• Your ideal take-home pay

• Tax, National Insurance, pension

• Non-billable time (admin, marketing, holidays, sick days)

• Software, subscriptions, training

• Profit margin (yes, you deserve one)

If you’re working 3 billable days a week on average, your rate needs to account for the other 2 days you’re running the business - not just working in it.

⚖️ Not sure if your rate works?

Here’s a rough test:

Are you hitting your monthly income goals without burning out?
Can you take time off without panicking about cash flow?
Do you feel comfortable quoting what you're worth - or do you immediately flinch?

If the answer is “no” to any of those, it might be time to revisit your numbers.

✅ What you can do this month

• Pull up your last 3 months of income - are you charging enough to meet your targets?

• Write down how many days you actually worked vs what you were paid for

• Try pricing one new job as a flat project fee instead of a day rate and see how it feels

• Book a power hour with someone you trust (accountant, coach, freelancer mate) to sense-check your pricing

And if you want help figuring out whether your rates are sustainable, Buzz can help. We work with freelancers and small business owners to get your finances clear - so you can make confident pricing decisions without second-guessing every quote.

Not sure where to start?
Reply to this email or drop us a message - no pressure, no jargon, just honest advice.

Until next time,

Vicki