7 Important Factors To Consider Before Pricing Yourself As A Freelancer
When starting out to make money online as a freelancer, there are many things that come to mind, one of them is the price to charge for your services. Freelancers who are new to the market are always in a dilemma on what to charge for their time and effort. There is always this fear when pricing to avoid underpricing yourself to look cheap and lose money that you would have earned and/or charging too high and losing the potential customer. Of course, before placing price on your services, it is advisable that you do a little research and put the following factors into consideration:
The Uniqueness Of The Skill:
The first question to ask is: how competitive is this service? How many people can actually render this same service that I am offering? Make research for this service and see if the competition is high, this will help you determine the place of your service in the freelance market.
Know What Others Are Charging:
How unique your service is should be accompanied with what others in the same niche are charging. Take for instance; web designers are charging $150 to design a complete website. It will look unserious of you to charge $40 for the same service or $500. Prices too low or too high either depict that you don’t know what you are doing or you are not abreast with reality.
It is crucial to consider your expertise in the said field. Having too many people in the same niche is not enough to charge what they are charging. Know your onus and charge according to your expertise. Do you have an additional certification that differentiates your service from what others offering similar service can offer? Example is the world of web design today, almost everybody claims to be a web designer, but when you see a website designed by a professional, you will surely know.
The Cost In Time:
Definitely, each work demands different time from the other. First evaluate the demand of the client to determine the time it will take you to complete the work. If the work will take you less hours, charge less, same with jobs that require more time.
Cost Of Other Resources:
Apart from the time that the project will cost, what are other costs that you will incur while carrying out the project? Consider the cost for data, power, office costs, insurance, stationeries and any other financial expenses that you may encounter and total the overhead costs before coming up with a price to avoid working at a loss.
The Client’s Budget:
As important as it is for you to put all your expenses together in giving your price, it is pertinent to consider the budget of the client. Some clients may be willing to pay more while some may be working on a budget. Be ready to negotiate and accept a rate lower than your drafted costs in as much as it still leave you with an extra money after adding and subtracting the costs and price.
The more urgent the job is, the higher the charge will be for causing you to leave every other work that you are doing to complete it within the given time period. Ensure you are confident to finish the job on time as stated or else, it will dent your freelance image. You already know the cost in time, leisure and forgone alternative to you, so charge accordingly for it.
In all, please do not sell yourself cheap to get that job. As a freelancer, one of the advantages you have is that you are in control of how, who, and when to work. It is better to spend fewer time working but yet have something to show for it than working all day but yet has nothing to show for it. Rest and leisure is part of your time that should not be taken lightly, work, earn, rest, and be happy!