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Wednesday, January 27, 2010

Cha-Ching! How To Set Your Freelance Rates

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The topic of pricing as a freelancer is often a touchy subject. If your a newbie, and itching to snatch that first client, it is so tempting to just shoot a random number you think they will like in order to seal the deal. We all know doing this has dire consequences as well. Sure you landed that client, but is the return a great one? For example, Freelancer A works 80 hours to make $300, and Freelancer B  made the same amount under $50. Why is this you may ask? Freelancer B charged a higher rate, and probably did his or her research, where as Freelancer A works his or her tail off to make a few bucks.

There are a number of things to keep in mind when pricing your products and services. I suggest looking up the art of pricing to get a feel of how this concept really works. It is really more beneficial to create a pricing strategy before you divulge into steady freelance activity. In general, when it comes to pricing, you have to consider your Costs, Competition, and what the overall market rate is.



Costs

Before coughing up that quote to potential clients, consider the costs you are racking up to do business. Those costs can range from marketing your services to accounting, software expense, as well as equipment. This is one of the most influential factors of creating a pricing strategy so make sure you keep good record of your cost of business.

Competition
 
Research is the one activity that will save you from tremendous headaches later on. Try to to network with HR professionals in your field, and find out what the average charge is. Find surveys on your profession specialty, and check out your competitor's website consistently to get a feel for what they are currently doing. When it comes to beating your competition in terms of price, it's best to stay in the middle range of prices, and pump out unbeatable quality work at all times. If you charge much higher than your competition, your products/services have to reflect the higher price. If you price lower, you may land more clients, but you may also lose some clients because they wont take you seriously. Let's face it you have some people who are budget conscious, and others who assume low price equals low quality.

Current Market

Since freelance is more geared towards supply and demand, finding this information won't be easy. You may have to re-adjust your rates to stay somewhat parallel with what the market is doing. If you want a bigger slice of the market share price, you need to diversify your current specialties. Adding more experience and knowledge always increases a freelancer's value, therefore enabling them to increase on price.
 
 

That is my overall guide on pricing as a freelancer. Of course, there are a few other factors that need to considered when finding your price, and I will try to cover them all in time. Until then my friends, you have to stay tuned to see whats next! As always your comments are both appreciated and encouraged.





Fashionably Yours,






Since the tender age of twelve, Schaumin Chanel Alexander has been creating fashion illustrations, and designing womens wear apparel. Shortly after graduating college with a Bachelor of Fine Arts in Fashion Design & Marketing, she began freelancing her talents. SchauminChanel is the main designer and chief operator of Creative Conceptz Ltd., a company dedicated to freelance fashion design.



1 comments:

UmaPreve said...

Good tips as usual.. Thanks for sharing!

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