Rates--Part 3

ANOTHER SIDENOTE: This means, for future projects, I can expect to need an average of 5 hours for every 100 pages. So, if I get a call that says they have 2,000 pages in 3 weeks, this means I will need to work 100 hours during those 3 weeks, or approximately 34 hours each week, in order to complete the project.

Back to the example. By tracking everything, even with practice indexes, you will know what your average speed is. Try to increase your time. The faster you index, the more likely it is that you can charge a reasonably affordable rate. If you can index only 5 pages per hour, and work an average of only 16 (out of 20) hours, but have $85,000 in yearly expenses, you would have to charge around $20 per page in order to meet your needs. This type of rate isn't likely to happen.

Let's look at our rate building in one more manner.

Let's say we've got the highest rate we can get in our niche. We can't work anymore hours. We've topped out at our speed, and yet we're still not making enough to cover our projected expenses.

What can be done?

The only other thing at this point that can be adjusted is the amount of expense that your indexing job needs to cover. Go back to your documentation and see what can be weeded out. Can you reduce the amount of anything? Lower utility bills? Eat out less often? These are decisions that only you can make. If nothing can be reduced, then your only option is to take another job outside of indexing.

At this point, let's review what you feel is your situation: You cannot reduce your expenses. You cannot charge more and expect clients to pay. You cannot get faster. You cannot work more hours.

Quite frankly, you are stuck. If you are doing rate building and rate analysis early in your indexing career, it may help you see that indexing isn't for your situation, even after you get established! There isn't anyway you can make ends meet, even when you get faster and better.

Rates and rate analysis aren't touchy-feely kinds of things. They are concrete. They can help you make decisions that are right for you.

So let's review the basic steps for creating a rate. They are:

1. Find how many weekly hours you average, first taking into account sick, vacation, personal time, etc.

2. Find out how many dollars of expenses you need

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