For all your online business building info! , 2021-05-18 10:16:37
How to Determine your Freelance Price
Determining your freelancing price is a difficult task, especially for someone who is just beginning as a freelancer. If you price yourself too low, you will loose money and if you price yourself too high, people won’t hire you.
Before you start number crunching, you should read this article and take the following nine factors into consideration:
1) Your Cost
Before you can determine your rate, you should first determine your own costs. You must account for holidays, sick days, hours with work and so on. Remember: each project should at least break-even.
2) How Much Profit
This subject is related to your own costs. You should always consider how much money you are trying to make above break-even point. After all, this is business.
3) Market Demand
If you’re service is in high demand and if the people who can deliver this service are rare, then you should aim to make your service more expensive. Of course if there is hardly any work, you’ll need to make the service less expensive.
4) Skill Level
Not every freelancer can deliver the same quality or result. You should aim for the highest quality. You should also try to deliver more than the project is demanding. This assures that the people will ask you for another project, because people like free stuff. Another thing that is expected from you is that you know the latest information in your field. So keep learning to keep up your skill level. Whatever your rate, it is expected that it is commensurate with your skill.
5) Industry Standards
It is not always easy to know what others are asking for their service, but you should try asking around. Try to find out what other freelancers are asking and also what larger businesses are charging. Another thing you should try to find out is what service they deliver for their price. The better you know the better you can determine your place in the market.
6) Your Experience
Although often intertwined with skill, experience is a different factor altogether. You may have two very talented programmers, but one with more experience may be able to foresee problems sooner then the other. This can save the client time or money. Experience should affect the price you ask for your service.
7) Your Service
What you provide for your clients will also make a difference to your price tag. Maybe you’re on call 24-7 or you’re a person that will do everything to get the job done. Whatever the case, adjust the price according to the type and level of service you provide.
8) Business Strategy
Another thing that can vary the price is the business strategy you are applying. Maybe you are trying to get business in the low-end market, and then your price should be lower than the high-end market.
9) Who is Your Client?
Your price can vary for different clients. This could happen for various reasons. Some clients require more effort or some may be repeating clients. Maybe someone has a job you are dying to do. This is why you should know your own costs before you can make a price. You never know when you have to change your rate because a project or client demands it.
Give it a lot of thought
So you see, you have to give it a lot of thought before you determine your price. Of course some things you will only find out through trial and error, but if you give it some thought you can keep the errors (and thus losing money) to a minimum.
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