Pricing is a tricky business for anyone and especially for freelancers who are constantly competing with other freelancers for work.
You have to get it right the first time or lose money and possible clients. Of course, that is not always easy to do and a lot of the pricing depends on a variety of things and you don’t know that until you actually have a client to give pricing.
- Accurate Pricing. This is the most important part of your freelance business. Accurate pricing. This can help you make or lose a lot of money. So, how can you be accurate?By using time tracking tools and accounting software. These tools will keep accurate results of your work, so if it ever comes into question you have proof of the time used. It also helps when negotiating with other possible clients that have the same work. Your software already know how much was changer and how much you actually made.
- Per Hour. Charging per hour is not only tricky – most clients only care about a final cost and per hour cost. When charging per hour clients are not comfortable. Think about it this way. You have a project that needs to be done and you are told it will cost $100.00 per hour and it takes three hours.As a client you might be thinking: “What if the time is longer? What if the vendor has an emergency and charges for the extra time?” To make a client comfortable you can figure out your per hour cost but, present it as a full amount. Like this…instead of $100.00 for 3 hours just put down $300.00. It sound much more appealing…right? Besides a client really doesn’t care how many hours it takes just that is it done correctly and well.
- Deliverables. This is where a lot of freelancers get caught in the messing work trap. The most important part of any project are the deliverables ( a material object created by the team, such as a report, a custom software component or a computer that contributes to the completion of the entire project, such as the creation of help desk tickets or operational help desk. Sometimes we work on these things and actually forget to bill for them.Always keep track of every single thing you do for a project. Meeting with printers, other freelancers, taking the client to lunch, etc. Things other than the initial design are things we sometimes forget are really part of the project. You don’t want to spend money on setting up an incidental PDF and forget not to charge for it.
- Revisions. This is a big problem for a lot of freelancers. Clients inevitably make changes but, some make a lot of changes, so you need to be sure to include the exact amount of changed allowed in your contract. We have said it time and time again and in many articles…use a contract even if it is a family member. Why even family?Because you are a professional (even if you don’t charge them) and will always know how your time was spent and how much you profited from each project. Revisions are especially important because many clients are not sure what they want and don’t realize (or care) how much time is being used to make the changes. Most freelancers allow 2-3 revisions but, if you have a really good client you may allow a few more but, always keep in mind the time making the changes.
Pricing is always a touchy subject for many freelancers, but once you get it set-up it will be much easier.
Have a thought about pricing? Please let us know in the comments below. Thank you.