How to Price Based on Where You Are Financially

Your pricing strategy should be grounded in where you are financially right now. Here’s a practical framework.

The Three Stages

Stage 1: Building the Runway (< $100k saved)

At this stage, predictability matters more than maximizing rate. Hourly billing gives you a clear income floor. It’s not sexy, but it’s stable.

Stage 2: Established ($100k-$300k saved)

Now you have breathing room. Start shifting to project-based pricing. You’ll earn more per hour of actual work, and clients get cost certainty.

Stage 3: Secure ($300k+ saved)

This is where retainers shine. Monthly retainers create recurring revenue and deeper client relationships. You can afford to be selective.

Managing Scope

Regardless of your pricing model, clear boundaries protect both you and your client. Every proposal benefits from a well-defined “what’s included” and “what’s not included” section.