Making Sure the Price is Right
(source)
Jean of Small Business Boomers wrote about pricing a product or service. Here are the five questions she came up with:
- What is the competition doing? Are they raising or lowering their prices?
- Can a change in pricing get you a bigger market share?
- Can you create additional value perception?
- Is the demand for your products/services increasing or decreasing?
- If you are selling services, are there other ways you can receive compensation (barter, for example)?
It’s clear that an effective pricing strategy requires an awareness of what other people are doing. In other words, it literally pays to know the compensation standards set by the other players in your industry. That and a willingness to objectively evaluate your offerings for better proposals.
On the other hand, the right price is also dependent on the freelancer’s needs, whether crucial or not. No doubt, paying for food and the rent are absolute requirements, compared to setting aside money for that 40″ HDTV. If you feel that what you make isn’t enough, there are two solutions: either you decide to live without certain monthly costs, or present a better package to potential clients.
Successful contract workers calculate how much they need to earn to maintain their preferred lifestyle, market in a way that attracts the right clients, and accomplish projects in a manner that backs up their asking price.
Related Stories
POSTED IN: Great Advice
3 opinions for Making Sure the Price is Right
Miranda
Dec 13, 2007 at 7:37 am
Great post, Rico! I blogged it over at my WorkShak blog: http://www.workshak.com/2007/12/how-do-you-set.html
Another thing that I had to consider sometimes, when I first started out as a contract worker, was whether I could actually say afford to say no to proposals. Now, though, after building some experience, I can say no if a proposal doesn’t reflect my value.
Making Sure the Price is Right · HDTV Information, Reviews, and Deals
Dec 13, 2007 at 12:59 pm
[...] Original post by Contract Worker [...]
Jean
Dec 16, 2007 at 8:40 am
Rico: Thanks for the comment. I struggle with feeling that I have to take freelance jobs that are very low-priced. If I do that, I figure there has to be additional value for me - like getting my name on the piece, or promoting me in some way or adding substantially to my credentials.
Have an opinion? Leave a comment: