Recently, I delved into what I’ve learned since becoming a freelancer. However, I neglected to mention one of the most difficult lessons to learn, which was something that presented itself to me rather quickly.
“What is your fee for services?” was not a question I had prepared myself for. When it came to hourly rates, I was accustomed to being told what I would make and accepting that as my worth.
This is a concept that needs multiple components to be taken into consideration. You need to evaluate the services you’re providing, the timeliness in which you can accomplish said services, and your level of expertise.
Dorie Clark of the Harvard Business Review believes that freelancers should be charging clients more than what they think they’re worth. The price you give to your clients is worth quite a bit, itself.
Underpricing can send a bad message to your potential clients. If they’re in the market for your services, odds are they are comparing prices from a few other places.
Having too low of a number can put up a red flag to clients that you may be under-experienced. What you’re pricing should correlate with quality and value; set a number that shows you do good work and value that work.
Clark suggests developing a network of trustworthy confidants that you can bounce ideas off of, including price points. Having an idea of what other people in your shoes are doing can help you feel more comfortable when it comes to increasing prices.
And, for increasing prices, it is not something that is going to just happen on its own. It’s highly unlikely for a client to say, “you know what, I think I’ll give you a raise!”
It’s important to never take advantage of any client, but it’s especially important to show loyalty to the ones that have always been loyal to you. Test the waters of price increasing by keeping your prices lower for clients that have always been there, but then try raising prices as you take on new clients.
At the end of the day, keep in mind that you are doing this work to support yourself and, theoretically, because you’re good at it. Make sure you’re putting an appropriate price tag on that value.