Pricing tends to be one of the most awfully tricky parts of this business. Early on, most of us are haunted by these questions:
Should I worry about people who are offering the same services cheaper?
Can I get away with charging more?
Will I get this job only if I lower my bid?
Should I charge according to the ability of the client to pay?
With the bottom line, burning question being…!
How much should I charge?
It’s impossible to give you a definite guide on pricing because there are too many variable factors playing into the equation, such as your specific financial situation, your monthly expenses, the standards of living of your city, etc. The best way to price is to determine how much you need to be making each month to be living comfortably, and then break it down into how much you need each week. Then determine how many hours you are willing to put in, and this leads you to your hourly rate. Of course, most of us would rather not work at all, in which case this formula gives you a division by zero error.
- Hourly Rate
On a serious note, though, you will want stare at your hourly rate – and determine if you can sell yourself at that rate. As you gain experience and authority, you earn your rights to higher and higher hourly rates, but when you are starting out, you might have to settle for the lower end of the spectrum. You may need to increase the number of hours you put in to meet your earnings’ goal, but as you go along, again, the time you need to work will decrease as your hourly rate increases.
- Don’t Start Too Low
A word of caution, though – don’t start off too low, unless you plan to move away from the marketplace and start over again, and are only looking to get some references and testimonials. In any marketplace that you are in for the long-term, you don’t want to get locked into the reputation of being an inexpensive worker. The only contexts in which lower pricing is admissible is when you are absolutely starting out and need your first testimonials (and you would want to be upfront about this), or if you are helping out a non-profit or charity. In particular, don’t offer lower pricing for friends and family – either avoid the project or hold your ground (unless you have a very good reason to make an exception).
- Set Your Clientage
It’s possible that you will lose some gigs for your choice of pricing, but don’t let that bother you – there’s room for everyone, and you will eventually build your own group of clients who trust you and are happy with your pricing and setup!
- Set Rates According to Your Qualities
Many freelancing platforms have the freelancers profile displaying their average hourly rate. Snoop around to find freelancers who are doing the stuff that you are, and work out their average hourly rate. While you should not allow your competition to determine your worth, this is a good ballpark figure to make sure you remain realistic with your own hourly rate.
Most projects you work on will be fixed-rate jobs, so you need to work in a time estimate for the job. This can be tricky – you might under or overestimate and making mistakes is not atypical at all. However – make sure you time-track your work, so you can assess how much time you are really spending, so you can make corrections to your future estimates.
Author Bio:- Charles West is a professional content writer and blogger since last 2 years. I have writing expertise in technology and certification topics specially. I love to share that recently I passed my 642-832 exam from SAS institute. Thanks for reading.