I used to cover the expenses for tools like Adobe and project management apps myself. It hit me that I was funding my clients’ projects with my own cash.
Now, I include a portion of my software costs in every quote. It felt strange at first, but it’s a smart business move.
Took me forever to figure this out, but yeah, you’re right. I was basically eating costs that clients had no clue about.
I tracked everything for a month:
Way more than I thought. Now I just bake it into my rates without making it a thing.
Clients never even blinked. All that stress for nothing. They want results and assume you’ve got the tools to deliver.
I charge a flat rate for each project. No need for hourly rates or itemized costs.
I calculated my monthly costs, including software, and figured out what each project needs to earn for me to profit. It simplifies things for clients and me.
They just see a clear quote, and I know I’m earning what I should.
I roll software costs into my hourly rate now instead of itemizing them. Quotes look cleaner and clients don’t nitpick every expense.
Took way too long to figure out I was buying Photoshop and Slack for my clients’ benefit. That’s ass-backwards.
I add up my monthly software costs, divide by billable hours, then tack that onto my rate. $200 in software across 80 billable hours? That’s $2.50 extra per hour.
No weird conversations about why I need certain tools. My rate is my rate.
Same here. I was sick of watching my margins disappear every time I added another subscription.
The wake-up call came when I tallied my monthly costs. Canva, Dropbox, QuickBooks, invoicing software, hosting - nearly $300 just bleeding out each month.
Now I treat it like rent. Essential business expense that gets baked into every quote. No guilt anymore because these aren’t luxuries. Clients want professional work, and that requires proper tools.
Weird how long I resisted this. Like I was supposed to eat software costs on every project out of pure charity.
Good call. I track every software expense as overhead and price it into jobs. Period. If I need the tool for your project, you’re paying for it. Same as my truck payment or insurance. It’s not charity work. I don’t break it out separately on quotes because clients don’t need to see the math. They’re buying the finished result. How I get there is my business.
Once you start treating software like any other business expense, the mental shift happens fast. You stop feeling guilty about charging what the work actually costs.
Makes sense. I just raise my rates when my costs go up and call it a day.
Been doing this since year three. I add up all my monthly software costs and divide them across jobs. Don’t break it out on quotes though. Clients just want results. They don’t care if I’m using a $50 app or $500 software suite. The price covers whatever it takes to get their project done right.
I always bundle costs into my project rates - no hesitation.
Most of my subscriptions exist because of client work. Figma, Slack, storage - I wouldn’t pay for these otherwise, but they’re essential for projects.
I add a software line to my internal breakdown. Clients don’t see it, but I know I’m covered.
Smart move. I ate those costs for a year before I figured this out.
Here’s what works for me:
Clients sometimes ask. I tell them it’s like any other business expense - these tools are needed for their project. Most people get it.
The guilt fades quick once you stop subsidizing everyone else’s work.
Yeah just add it to whatever you charge anyway.