Some freelancers work over 80 hours a week but earn the same amount of money as a freelancer who works only 25 hours a week. The difference lies in pricing freelance services. This makes 80 hours per week seem pretty unfair and useless. This is also the reason why many freelancers give up and return to their full-time office jobs. Although there is no golden rule about the right pricing of freelance services, some general rules can help reduce working hours while increasing revenue.
1. View Advertised Gigs and Research
By viewing current ads, you’ll get a better idea about the benchmark pricing of your freelance services. However, you need to ensure that the advertised job is similar to yours. For instance, pricing freelance graphic design work does not work the same way as pricing freelance web design services. Both jobs have different requirement and different level of difficulties. If you fixed a very high rate, you are unlikely to land any job. On the other hand, if you undercharge for your freelance services, clients will doubt your competence. It is, therefore, essential that you charge the right price for your freelance services.
2. Recognize Your Skill Level
Working as a freelancer often means that your ego should be set aside. It is important for any freelancer, whether beginner or intermediate or expert, to evaluate their services. One efficient way to do so is by comparing your service quality with that of your competitors. For example, when setting a pricing strategy for freelance designers, the designers should assess their services and decide whether to go below or above the market value. Besides the skill level, some of the criteria to consider are experience and reputation as a freelancer. Of course, the higher the level of these criteria, the higher you can charge clients.
3. Be Realistic About Your Demands
Accept the fact that you might have to drop your prices initially. When a freelancer just starts out, he rarely has a portfolio to show off. This, in turn, reduces his chances of landing a good project. When pricing freelance services, this is definitely a criterion to consider. As the demand for your work grows, you can then increase the pricing of your services. Nevertheless, you can sometimes make clients believe your services are in high demand. For instance, turning down a few clients is a sign that you have much work. You can always approach the clients later and accept their work.
4. Identify All Related Costs
All businesses have related costs and expenses. The same applies for freelance services. It is important to consider all costs related to your services before you fix a price for them. For example, one pricing strategy for freelance designers is to consider the costs of stock images or any template that needs to be purchased for a specific project. In another designer or developer is to be hired as an aid to the project, this should also most certainly be considered as an additional cost. Telephone calls, marketing expenses, and traveling costs, if any, should be added to the charges for the project. After all, you should not be working at a loss. A loss can be both in terms of money and time.
5. Be Generous to Regular Clients
It pays to be generous. After a few months or years of experience in the freelancing field, you are bound to make some loyal clients who keep coming back for your services. You can show appreciation by giving them discounts from time to time. Of course, you should still be generating some profit from your work, but you can sometimes reduce the amount of profit that you make. This is not only a sign of generosity but also a sign of professionalism. You may offer discounted prices for clients who place more than one order. The same can be offered to clients who seek your services for bigger and prestigious projects. Returning clients should most definitely be pampered.
The pricing of freelance services can be quite a headache. Sometimes, clients are unhappy with the rates being offered. Sometimes, you might find yourself without any work and hence be tempted to reduce your prices. However, the important aspect of freelancing is to project a good image of your services and your work. The right way to do so is by finding the right prices for your freelance services. The amount you quote for a project tells you about the quality of your work than you think.