It’s so easy to get caught up in the need for experience and exposure that we often sell ourselves short in the beginning of our careers. Yes, we must earn the right to call ourselves professionals. Yes, our rates should grow as we gain momentum and expertise. We, in our novicehood, cannot pretend to compare our fees with those of veterans in the field.
But, all things considered, we should be charging what we’re worth. We can use standard industry rates as a gauge. But, my friend, I want you to also consider that just maybe you are better than some of your more seasoned competition. Think of the passion and effort that goes into pleasing your clients. Now, tell me, do you put less effort into a one hundred dollar job than a one thousand dollar job?
If you are smart, you want anything that leaves your desk to be as perfect as you can make it. Each and every piece of work is a patch on your boy scout/girl scout vest of entrepreneurialism. So, why not use the actual quality of your work as a factor for determining your rates? Why not express to your client that, although you are new, your caliber far exceeds the competition. In a not-so-cocky way.
Sometimes, I’d rather do a free project in the beginning stages of getting to know a client, just to let them get a taste of my ability. After we discuss my rates, I’ll suggest that they try me out for free. This might ease the queasy feeling in their stomachs that comes from knowing that my portfolio is not one hundred pounds. But, it is substantial and of high quality.
We know that financial times are pretty tough right now, and some potentially great clients may not actually be able to afford our rates. Sometimes, I consider that maybe I can offer a special rate for a series of projects, help the client pick up business, and then increase my rates. Well Kids, that doesn’t always work.
If people think that you are cheap it brands you. It either makes you appear unaware of your own worth,(which some clients love, by the way), or it makes you look less qualified for a job. Yes, times are tough right now. You need to budget wisely for your business, but how often do you opt for a generic version of your favorite food item or facial cleanser? You pay top dollar for products that are worthwhile, and so will your clients.
Fill your portfolio with pro-bono work that you do for entrepreneurs like you. Share your gifts among a community of your peers. Earn your badges that way, and always charge bigger clients. Never sell yourself short because it is very hard to go back. If Client X says they cannot afford you, then perhaps you cannot afford them.
Whether you’re offering a product or service, you should always put your best effort into creating top-notch quality and charge accordingly. Once your name becomes their “favorite,” they will afford you.
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it’s a great article.
sometimes, people will charge less – maybe because they’re amateurs and/or they think they can drum up business easier/faster…
but it can also have a negative effect, people will beg to question – why you charge cheap, at least relative to the competition…then and there, they’ll discount you already as someone who is ‘lacking’ in one way or another – hence your low prices.
people don’t want to buy a car that’s missing seats, and a wheel…in spite of it being 30% below market. people want the complete package, and they’re willing to pay complete to get it.
Great post, Gina. You know, it’s a combination of “perceived” value and “personal” value. A mortgage banker who is making a million a year may happily be willing to pay $5,000 for a 20 page website, because in his mind, 5K is nothing. Now a bakery may be willing to pay $1,500 for the same website because he personally feels that it’s fair and within his budget. You, as the entrepreneur, have to draw the line — from client to client — on the value of what you think you can charge and at the same time maintaining your brand and keeping your strong image.
lol – you’re “milking the cow” for all she’s got, so to speak – david?
that’s unfair business practice, even illegal i think, to charge different clients different prices for the same product.
I was referring to web development (in the “example”) and no it’s not unfair, it’s call perceived value. A web developer — freelancer — can charge any price that a client is comfortable paying depending on their particular business. Are you kidding me, that’s not illegal. LOL… Speak to any web developer and talk to them about perceived value and how much their prices fluctuate between various clients.