Are You Charging Too Much: 10 Pricing Tips for Freelancers
One of the most common questions for freelancers is pricing. “How much should I charge my client?” It’s a good question, but there are no easy answers. At Rtist, we try our best to give you the best advice to help you figure it out for yourself.
Here are 10 of our best pricing tips for freelancers.
1. Ask for the client’s budget
One of the first questions you need to ask a client is, “What’s your budget?” This is how you save time and get in the right ballpark. You could waste lots of time talking about all your services and solutions only to realize they can’t afford it. Sure, you may have experienced some clients complaining and claiming you’ll charge them whatever their budget is. But it comes down to trust. You can’t give a fair price and offer a service they actually need without knowing what they’re willing to spend.
2. Don’t go too cheap
If you’re trying to win the lowest price competition, you’ll be the final loser in the end. Lowering your price severely undervalued your service, so you should always set a bottom line for yourself and know your own worth.
When you’re in a discussion regarding your price, be confident. Remember to emphasize what you’re delivering and its value. Don’t apologize for the price you are charging. Say it and move on. Be confident when you talk about money. Say up front what it costs. If you don’t know, tell them you’ll find out.
4. Focus on prompt payments
You may come across many clients who put your payments on hold. However, we recommend you focus on clients who pay quickly and promptly. Quick payments can be a more reliable source of income than some of your bigger clients.
5. Give your clients value
Most of the time, you won’t know what your client is willing to pay. However, when it comes down to it, you should never base your rates on your costs, time, expenses or even what you think you’re worth. Base it on what your client gets out of it. Let’s be clear: Your costs, time, expenses and even what you think you’re worth do matter. But focusing on those things alone and ignoring what the client values is a good way to undervalue yourself.
Think of it this way; your experience is saving clients money, so your pricing should reflect that.
6. Give exact figures
Here’s a little tip we don’t mind sharing. When you are giving a price, give an exact figure instead of an even number. For example, charge RM1,524 instead of RM1,500. Why? Because it has been scientifically proven that round numbers make clients more likely to haggle for the price, but exact numbers makes them assume that there is more finality with the price.
7. Say no to discounts
It’s very tempting to give out further discounts on your services to further hook and reel your clients in. However, instead of offering discounts, why not give your clients more? Discounts can eat into your profits, devalue your product and train people to expect discounts in the future. Rather than that, why not throw in a free service like a one-time free amendment or a bonus design? It’s just how you reframe what you can offer.
So now that you have some tips on how to properly price yourself, let’s go and get some jobs. Get started on our Browse Jobs page.