6 mistakes freelancers make with pricing and how to avoid them
We all put our foot in it and even though it’s supposed to bring good luck, we’re here to just help you “keep your shoes clean” - if you know what we mean.
Here we teach you how to avoid 6 mistakes that freelancers often make when pricing:
How much do you spend?
Pricing without considering your costs is a huge risk and a mistake we also made at the very beginning. Remember to factor in food, rent, entertainment and other living expenses in general but don’t forget equipment, software, supplies, and insurance. It’s important to think of all costs to ensure you’re charging enough to sustain your business and living.
Research and fine-tune your rates
Researching the rates of other freelancers is a big do for us but be careful: just because other freelancers charge what they do, it doesn’t mean they did their research. Also, research needs to be refreshed to keep up with market trends, the growing cost of living, and your ever-increasing experience. The last note on rates is that you should be prepared to negotiate with clients. You do need to be confident, but also to be willing to compromise if necessary.
It’s never just that
Consider how much time you spend or might spend on a project and charge accordingly. This includes not only the time spent working on the project itself, but also on communication, project management, and other tasks. If you’re not charging an hourly rate, still consider this point: a project is always more than just that.
The big C
We don’t really know what you were thinking but of course, this is all about communication, and we wrote it in bold because it’s just that important. You should be clear and upfront with clients, to avoid misunderstandings down the road. We suggest having clear T&Cs, including payment terms, cancellation policies, and confidentiality agreements, to protect your interests and to establish a professional relationship with clients.
Bend with the wind
Clients will appreciate you being a bit flexible with pricing, particularly for long-term or repeat contracts. Doing this can help you build a loyal client base and is a win-win for both.
The “mystery” of value
For beginners it's frightening and for seasoned freelancers, it’s plain hard. Whatever model you go for, it’s never wrong to at least try and consider the value that their work brings to the client and price accordingly. This can be particularly important for high-impact or complex projects.
We’ve all been there and made mistakes with our pricing and we really hope sharing what we know in this guide has helped you avoid some of the most common slips and get a clear idea on how to move forward.
