I just use the Business Calculator to do a simulation for a newbie photographer wish to make some money by doing freelances of shooting events,
base on he can spare his time to shoot 100 shoot and burn style assignments per year, of 4 hours events @$50.00 per hour, that work out to be average two assignments per week.
that is really consider very busy in term of doing it as part time, and he is making $20,000 Gross income per annual.. sound real good isn't it??
Here is his expenses per month
Phone $60.00
Camera Gears $400.00 (about $4800 a year, it will take 2-3 years to built a two bodies, two pro lenses system)
Camera Gears maintenance $40.00 (camera/lenses need repair and servicing right? and some time he need to rent whatever he don't have)
Computer (hardware and software) $150.00 (Ok, shooting and burn don't need photoshop, but can he do without computer?)
Broadband internet $60.00 (hello, nowadays who don't have broadband?)
Web hosting / Portal Services $35.00 (hey, how do people find him? even flickr pro is also not free)
Vehicle Expenses $180.00 (let say each shoot he took a cab to and fro, $10 per trip)
Office Supplies and Furniture $167.00 (let say each shoot he need to burn disc, send to disc to customer by courier services, $16.70 each is very cheap)
Advertising and Promotion $100.00 (it only allows him to advertise about 0.5 to 1.5 sites to advertise his photograpahy services)
Taxes and Licenses $10.00 (he follow my advice to register with ACRA for his freelancing business)
there are still many expenses that this photographer didn't factor in since he consider himself as freelancer
Office and studio
Professional Development
Subscriptions and Dues
Equipment and Business Insurance
Health Insurance
Legal and Accounting Services
Office Assistance
Utilities
Travel and Entertainment
So here is HIS RESULTS
Total Annual Expenses = $ 21,202.00
Weekly Cost of Doing Business = $ 424.04
Overhead Cost for Each Assignment Day = $ 212.02
So this photographer is screwed if he is charging $50.00 per hour, for each assignment he loses $12.02.
and he need to charge $53.00 just to break even, but he is still shooting for FREE, since he did not factoring his salary!!!
Does he really want to make $50 per hour?
than he will have to charge at least $100.00 per hour just to do shoot and burn style for FREELANCING.
Now you know why there are so many people quit doing freelancing after they try out for a few months.
So if any one of you still want to make some extra pocket money (which I have no issue with anyone want to make some extra pocket money, and most pros too), please, do yourself and many other people just like you a favour, use the Business Calculator, calculator your cost, and your intended profit.
and explain to your customers why you need to charge your rate this way.