Calculate your costs based on the value of your time

Time is money

Time is money; that we already know. It can be quite easily quantified: the cost of human time at work can be calculated as the ratio between the total monthly cost of an employee (wage, internet, phone) and average monthly number of working hours (168 if you count 8 hours per day and 21 workdays per month).

There is however a „problem“: human aren´t machines, their performance can´t be divided into standardized man-hours. We are the furthest thing from dull manufacturing capacities, processing one task after another. We are influenced by the working environment, weather, time of day, hormones and thousands of other things. As a result we´re fairly unproductive one day and discover gravity or painting Mona Lisa the other.

Costs and expenses are counted down to the last penny- so shouldn’t your time be too?

Time as a valuable resource

“The most costly outlay is the outlay of time”. This idea is attributed to Antiphon, Socrates’ contemporary. Already in ancient Greece, they knew that time should be calculated and that it is crucial to everyday life, so why do we, modern humans, disregard it so often? In every company, we are very meticulous in our accounting; we know exactly how many paperclips and coffee we need, how much we need to buy and how much we need to sell. But do we know, how much our time is actually worth? 

10 principles to improve your pricing for (not only) starting entrepreneurs

Set the correct pricing for your work

Sounds interesting? Then you, like many others, have probably spent some time thinking about the best way to price your products or services. You might have hesitated to make a decision for some time and have questioned the decision the second you thought about it or even made it.  Did I make the price too high or was the price too low? Don’t worry about it, assigning the correct price to your service or product is one of the biggest challenges any starting entrepreneur has to face.