Firedove Technology will be raises our rates by 14.3% effective immediately. This brings our hourly rate to $40 per hour. We’ve decided to raise our rates for two major reasons.
The first, being of the utmost importance, is that the rate increase will allow us to cover most of our tax obligation. With the help of a CPA we’ve been instructed to stash away 16% of all of our revenue. We understand and agree that taxes are absolutely necessary, but they are a bit of a bummer to pay.
The second, is that we’ve hit another internal revenue goal and with that we’ve decided to raise our rates. We’ve made a decision to not arbitrarily raise our rates or to do so when we are crunched for cash. Instead, we decided that as we hit specific milestones we would increase our rates. We are not looking to gouge our client’s pocket books. We are really just looking to continuously expand.
$40 per hour is still incredibly affordable for this industry. If anything are rates are too low. We’ve had a few clients state they we are charging too little for our time, and that the rate is potentially creating a perception of lower quality of work.
It’s also worth noting that the $40 per hour rate helps us account for time spent finding clients, doing administrative work necessary to running the company (like taxes!), negotiating terms of the contract, answering emails, and marketing ourselves. In the briefest of terms, while do work 40 hours a week, we are not making $80,000 a year… at least… not yet.
We still intend to provide agency quality at a freelancer price. But there’s no way to do that if we are running away from the IRS.