Pricing Your Design and Writing Services
Are you charging too little? Are you overpriced? Are you using the wrong method to calculate your rates? Cutting yourself short? Still on the per-hour method? Stuck on the per-piece? What about charging what you’re worth?
Setting your freelancing rates is damned confusing, and it’s no wonder. There are no standards for writing and design rates, really. Anyone can charge what they want.
So what should you charge? That’s another good question. Without standards and with a wide range between rates from provider to provider, you have nothing to use for comparison. Who’s right? Who’s wrong?
This post on 12 Realities of Pricing Web Design Services will tell you. (Don’t let the word ‘design’ in the title put you off – Steven’s post applies to freelance writing rates as well.) It’s one of the clearest, most objective posts on pricing in a freelance world that I’ve seen yet.
Steven’s article conveys something extremely important that no one else – including us – has conveyed with such quiet strength. In a gentle, respectful manner and examining all sides of the Rubik’s Cube of pricing, Steven passes on one message:
There is no right or wrong. There is only your choice.
Steven’s post helps look at pricing to figure out the rates that work for you. He gives good insight and he provides a wealth of links to other resources on pricing work as well.
Completely non-judgmental, fantastically neutral and with thought-out perspective, Steven sets all your concerns, fears and worries about your writing rates at ease. After reading his post and the accompanying links, you can take a highly informed decision.
That in itself is worth of note. Kudos, Steven. Well damned done.
26 Responses to “Pricing Your Design and Writing Services”
Comments
Read below or add a comment...
Go ahead. Leave a Comment!
-
Affiliate Program
-
James Is Reading…
-
Social Hookups
As Seen In…
Overheard on the Web
MwP is Powered by…
Hi James – that is a really useful resource. The biggest mistake I see new business owners make is charging ridiculously low prices to begin with – say half the amount their competitors are charging.
The trouble is, a lot of people will think there’s something inferior about what they’re offering if their prices are so low. Also, when they do try to put the prices up to an acceptable level, a lot of existing customers will feel like they’re being ripped off because the prices doubled.
Cath Lawson’s last blog post..Is It Time To Get Off Your Fat Ass?
I agree. Steven did a great job with the article. I’ve only touched on the pricing subject on my own blogs, and will certainly point others towards Vandelay until I can publish something of similar worth (no mean feat).
This was a great article and it looks like I’m seeing more and more of them come my way (articles like yours). That’s because my mind has been grappling with how to set up prices for my life coaching business.
I liked in particular the article “12 Realities……” There were two things that stood out to me:
1. Some potential clients will think you charge too much no matter what.
2. If you set your prices too low, you might get too many people who aren’t committed, asking questions without paying versus clients who are committed and able to pay your asking price.
Great stuff.
Stephen Hopson’s last blog post..End of the Week Gratitude Theme #35
@ Catherine – Too low pricing can be a serious problem, I agree. The perception of value and quality does go with pricing.
In our personal case, we’re on the lower end of pricing, but we continually push and promote the fact that we do so for a reason. We have to deliberately market that we want to keep ourselves affordable to even solo business owners and individuals to avoid any negative perception.
So far, so good. I think people understand that we’re the good guys, and not just charging high to make ourselves look good or get rich.
@ David – I hear you. We’ve done a few pricing posts ourselves but I’ve never seen anything like Steven’s. He did a brilliant job. And as I’m sure you’re well aware, price-setting *has* to be the biggest, most confusing area for any new designer or writer.
@ Stephen – Agreed. It’s very easy for people to blow off a low price and ‘forget’ to pay or feel that the worker doesn’t really need such low amounts of money.
And ooooh yes. Some people think it is their right to have free work and they are genuinely shocked when freelancers say, “No, this isn’t free.” Not sure where that perception comes from, though. Baffles me.
James,
Yep, Steven always hits it on the head. Setting your rates (or prices, for products—same stuff applies) will have a lot to do with how you’re perceived, and probably has quite a bit to do with how your perceive yourself. The one that grabbed me when I first read it was “Losing a job isn’t always a bad thing.” It’s one of a service provider’s worst fears at first. It takes time to learn how true that is, and embrace it.
Off-topic but I thought you might want to know: in my email subscription, none of your internal links are working today. Appears to be because you’ve got php stuff appended to the end of each link. You may not have a lot of email subscribers (hence may not worry about that), but if it’s doing it in your RSS, you’ll want to fix it for sure.
Regards,
Kelly
Kelly’s last blog post..6 Signs That Mean Your Business Is Going to Have to Try Harder
@ Kelly – Fixed, my thanks. There’s nothing I can do now that things have been sent out (I believe), but at least they can come visit the site to click through (if they care to do so.)
There’s definitely a strong relationship between price and perceived quality. When I’m looking to buy a product I’ve never purchased before my first instinct is to think that the one with the highest price is the best one. That being said, once you start looking at the product more closely you see features that you could do without. In the end I rarely buy either the cheapest or the most expensive, I buy the one that I feel is giving me the best value for the amount of money I’m willing to part with. And yes, I agree that the price you charge is strongly linked to the amount of self-worth that you feel.
Marelisa’s last blog post..How to Become a Renaissance Man/Woman
Hi,
Value is the main thing in pricing. We are exchanging value ( product or service) for a consideration. I think that value is directly tied to what problem we are solving for the client.
Do you think that the better we are at nailing what emotional benefit we are targeting, the better we are at pricing strategies?
Janice C Cartier’s last blog post..A Goal Setting Template- Part 4
James,
Thanks so much for the mention. It’s greatly appreciated.
Steven Snell’s last blog post..12 Realities of Pricing Design Services
Interesting. I guess the general rule is that if you price more you get less business but are payed higher for the business you do get. Price less, you get more jobs. I guess the ideal then, is to get as many jobs as possible, with the highest price you can reasonably offer. Sounds good to me.
Bamboo Forest’s last blog post..7 Things Cell Phones Make Worse
Thanks for sharing the link to this article.
Pricing is something I’m still working through. I don’t want to charge so much that no one hires me, but I’m not going to take bargain-basement prices just so I can get a job.
This is work–we need to get paid.
I know that the market generally sets what price ranges we can work from, but I’m realizing that a major reason why so many clients aren’t willing (or think they need) to pay decent rates is because so many freelancers don’t value themselves and think that their work deserves significant compensation.
Like I said, this is work. If we value our talents and services and set legitimate fair-market rates, while some clients will always think any price is too high, those who understand the value of hiring a talented professional will respect us for holding firm on legitimate rates.
Forget about working for exposure (after you have a decent portfolio) or for a couple dollars per project–set real business rates and go after real businesses.
That’s the only way forward that I can see.
Jesse Hines’s last blog post..Do NOT Try and Write Precisely
Before everyone goes into the “I’m valuable! I’m worth it!” angle, I invite you all to read the second link in this post regarding overpricing and charging what you’re worth.
I don’t think the “charge what you’re worth” argument holds much water. Most people don’t have the supporting backup reasoning.
I know my worth as a person. I don’t need my rates to prove a thing.
@ Jesse – Finding that balance is a tough one. Takes a long time. You’ll get there.
@ Bamboo – Ah, the great debate. Charge more, work less or charge less and work more? It all comes out to the same amount of money in the end, doesn’t it?
@ Steven – You seriously deserved the link. You’re welcome. Hope you get some visitors from it.
@ Janice – Good question. “I know this will bring you inner peace, therefore, I know this is worth more than 2c.” That right? My take on it? What if the person doesn’t value money as a high priority? What if the X you charge means nothing and doesn’t represent the benefit of peace? Tough one, tough one… How to measure the value of emotion…
Good question, though.
@ Marelisa – I’m both an impulse buyer, a dreamer and a critical shopper. I’ll get the most value for my dollar – and that may sometimes mean lower quality but more options or higher quality but with longevity. Case by case!
Yes, kind of like that. You are very good at focusing on emotional benefits, targeting ideal clients, … tapping into that. It kind of makes a little sense to me that pricing is directly tied to those emotional considerations. I am wondering if we hone our skills in those areas, we might get better at pricing.
Rush charges are an example I think of. And Fed Ex. When it “absolutely, positively has to be there overnight. ”
My paintings, for example. If I charged on a materials cost basis my ideal clients would be so disappointed. ( Ignore the value added component of me the artist for a sec) They have emotional needs as well as tangible ones. Price is part of that emotional checklist just as much as aesthetics. Does that make sense?
Janice C Cartier’s last blog post..A Goal Setting Template- Part 4
Hi James,
Kind of gets back to another post you wrote a month or two ago about the “morals” of pricing. As Janice says, increasing your value by making an emotional connection certainly helps the bottom line (kind of a benefits-instead-of-features approach, I guess you could call it) but at the same time you want to give your client value. You want to be able to look at yourself in the mirror.
I think that it is important to note that almost all (I’d say all, but let’s leave some room for error) freelancers will work for more some days than others. If your inbox is full, it will cost the next guy a little bit more to add to the pile. If it’s empty, it might cost him a little bit less.
On the surface, this might appear to complicate things, but I mean it in quite the opposite way. If you need the money, be aggressive in your pricing. If you are lacking in time, take it as an opportunity to increase your rates — even if it is just for a little while.
The bottom line: make sure the end product is worth your time and their money.
~Graham
Graham Strong’s last blog post..Do Blogs Work?
Hi Graham,
Yes. More than anything value is key. I hope mentioning the emotional benefit makes sense, because that post James did on the “morals” of pricing came to mind for me too. He added the emotional component he and Harry infuse in their pricing strategy and positioning. Naomi at Itty Biz did a post on her emotional perspective on pricing not too long ago. Since James is very on target about nailing emotional benefits, I thought how exactly does that affect our ability to really hone in on prices that trigger conversion, just as content does.
There are 3 ways of pricing in the art world ( according to Olav Velthius who is talking about historic pricing practices in contemporary art ) and they present 3 different circuits in the art world: Honorable, Superstar, and Prudent. Different schools of clients and service gatekeepers follow along behind each of those pricing strategies.
I guess I am wondering what happens when you flip the matrix away from ourselves to consider that “Ideal Client” very very closely just as James and Brian and everyone else says to do when connecting with emotional benefits instead of features with content.
I love your inbox visual.
Janice C Cartier’s last blog post..A Goal Setting Template- Part 4
oops. That inbox visual doesn’t make sense.
I meant I like that image you gave of when the inbox is empty vs piled with work..how that affects price.
Janice C Cartier’s last blog post..A Goal Setting Template- Part 4
James,
Pricing is all about you valuing your services and your clients’ valuing your services similarly. That’s all in the presentation. Lawyers suffer from the billable hour hamster wheel and it is very hard to break free. I’m partial to project pricing in all forms of service. It prevents tension between the provider and the client and fosters partnership as long as the provider delivers as promised…and then some.
Great post.
FreelanceSwitch.com has a rate calculator tool that can be great for helping folks determine, at the least, a good starting point for the rates they’ll set. It’s found under “Resources”.
Matt Tuley, Laptop for Hire’s last blog post..Is that graph necessary?
@ Matt – Actually, I found the calculator to not be very accurate in certain cases.
Like, for Canadians.
But it is a resource and can help, yes.
An excellent practical guide to pricing for freelancers is the book “What to Charge: Pricing Strategies for Freelancers and Consultants” by Laurie Lewis. I’ve read and heard a lot on the subject, and this book has been the most useful resource.
Debbi
Debbi’s last blog post..Lessons Learned (Part 4): Read Advice Like This, Then Feel Free to Ignore It
I totally agree. There is not right or wrong answer. Only YOU the designer or copywriter knows exactly how much you are worth.
I struggled with this issue for months. But don’t let it stop you from working. The truth is, regardless of how much you charge, some people are going to think you’re expensive, while others will think you’re too inexpensive.
The bottom line: Charge as much as you can!!!
In the end, you and your client will feel a lot better about the value that you have provided them.
But you better deliver.
People are writing stuff on the 4th of July? Oh… that’s right! You Canadians are!
Good stuff.
Pricing and perceived value is indeed all over the map. A big mistake people make is that they tie their prices to their perception of their own worth. Unfortunately, that mistake is extraordinarily difficult to overcome, because in the minds of these people, a poor self-image filters everything they experience so that everything is a symptom of their own detrimental self-beliefs.
On the opposite end, charging high prices is also not an indicator of self-worth. It’s an indicator of many other things, like good copywriting on your services page, or good sales skills during initial communications, but it’s no more a measure of a person’s worth than is undercharging.
I don’t always charge as much as I can. When I don’t, there are important strategic considerations driving it.
Michael Martine’s last blog post..How I Used Gateway Blogging Techniques and Landed a Client with a Single Blog Post
Hi James
As someone starting out in the freelance world, do you have any advice or links to examples on what to cover off in your quote/terms and conditions? I’m not sure whether to include a disclaimer…like ‘although ss makes every effort to ensure accuracy of content, ss will not be liable for any loss of revenue… etc’. What has your experience been?
@ Sally – That’s a tricky question, and I think that freelancers tend to have different variations based on what generally works for them.
We go for concise and the basics: Rate, turnaround, number of revisions, description of project, payment terms, what copyrights we sell (or don’t).
Getting into legal disclaimers and whatnot depends very much on what you are writing and the potential of damage from someone taking action on your content. But I do think that the loss of revenue disclaimer is a little bit of overkill…