Contract Worker - Freelancing Experiences

Be Aware When the Price is Right

by Rico on February 19th, 2007

Setting the right price for your services is crucial, because even if the difference may be small, you’re trying to maximize every second of your work. And underbidding your services over time can add up to a significant amount. If you overbid though, the client may get cold feet.

It’s thus crucial to find out how high you can get away with. This depends on a few factors:

1. Your reputation. Does it, as they say in the movies, precede you? It goes without saying that only contract workers known for their talent and professionalism can charge more. You have to pay for quality.
2. The quality of your previous work. Another reason for maintaining a portfolio: you can easily show prospective clients what you’re capable of. Again, good work = higher price.
3. Presentation. Marketing works. If you make a good initial impression, the potential client will be more willing to loosen his pockets. Just make sure you can back up the talk!
4. Trial and Error. We all make mistakes. So if you’ve lost a potentially lucrative contract because you were too greedy, or charged too little because you were too eager, learn from it. Preferably after the first try.
5. Market Forces. Do you have many competitors? Does the supply outweigh the demand, or the other way around? Adjust your price accordingly.

Ultimately, setting a price that’s most favorable for you depends on awareness. Awareness of the situation. Gauge constantly the impression you make on clients, how much you think they’re willing to pay, how much competitors are willing to work for, and how much your own skills are worth..

Share This

Related Stories

• 4 Factors When Considering Your Price
• How the Flea Market Helps Freelance Negotiations
• Price Packaging 101
• Making Sure the Price is Right
• Why Adobe Should Lower Their Prices

POSTED IN: Great Advice, Living as a Freelancer