What Is Your Per Hour Figure
This is where we talk about something called your per hour figure. This is gonna be the foundation of everything that we talk about for the rest of the class. So, it's how much money you need to bring into your business while you're working for a client. So, let me clarify. This isn't when somebody calls you and says "What's your hourly rate? "Like how much will you charge me to come "and photograph for me?" This isn't that number. This is your internal business number that you need to know as a photographer for every hour that you work for a client. You're gonna spend other hours on marketing. Your gonna spend other hours on running your business. But these are the hours working for a client. Shooting, selling, editing all of those things. Okay? So, how do you figure out your per hour figure? It takes into account everything that's going on in your business. So the formula is, your total expenses, divided by hours worked on client work. So, we're gonna go happy math again here. So you...
start out with your monthly salary. That includes everything that goes to your personal well being. Your paycheck, your taxes, your health insurance, your retirement contributions. Everything that goes into your personal well being and your business. That's your salary. I like to do it by month, because it makes it simple for me. So, your monthly salary plus your operating expenses of your business. So, these expenses are your monthly expenses. Include every dollar that you spend to run your business. So it's your general expenses. The ones that happen whether or not you have a client in the door. So it's your marketing, it's your telephone, it's your internet, it's your accountant, it's your office expenses, it's your rent, your utilities, equipment, all those things that you spend on a monthly basis to run your business. When you put your personal salary, you put your operating expenses together. That gives you your total expenses for the month. Then you have to figure out how many hours you actually work on client work. So, whatever that is. I would say roughly, when we did our business, we spent about half our time running our business and half our time working on client orders. So if you work full-time, 20 hours a week. If you work less than that, you'll have to figure that out for whatever your business is. So, the hours worked, it's for client orders. So what is your per hour figure? Now, when we get to this point, a lot of people are like "Oh my gosh, "I have no idea what it costs me "to run my business on a monthly basis. "And I have no idea what my actual salary is, "because it's irregular and it changes all the time." So, here is an example of how this works. The salary plus the expenses. Did you know that the average photographer makes about $66,000 a year? Kind of an interesting fact. So if you divide that by 12, it's $5500 a month. And that includes taxes, retirement, everything. That's an industry standard. Then, for the sake of happy math, we will assume that your business cost you $4500 a month to run. Which happens to equal magically, $10,000. Nice, round, happy number. And then, if you divide it by another happy number, a hundred hours per month that you work on a client order, you get $100 per hour figure. Now what I can tell you is if all of this math is overwhelming to you, and you don't know these answers because you're just starting or you're not quite sure about your expenses, this number is a safe number to use. This is something that will keep you in business over the long haul. It's a number that I use in my business, and so it's a gift to you that are not number specialists. Use this $100 as your per hour figure. I would suspect that many of your numbers are much lower than that. But go do the math, figure it out for your business and see what your specific number is. That is your red hot salsa item number two. Calculate your per hour figure, you're gonna need it for the rest of the workshop, so. Figure out your per hour figure, what that means to you.