The tricky part about billing & pricing
I've come to believe it’s not just about the time spent on a project. Sometimes it’s about the value of the service rendered.
Here are some points I came across on buildinternet.com and freelanceswitch.com
- A service with a higher price tag doesn’t automatically mean it’s a scam. Expensive without justification might fall into this category, but pricing based on expertise and experience is another story entirely.
- A website is a digital real estate plot with a potential audience of millions. For most clients, the web will be a way of extending their business — a self-promoting salesman. This is an important thing to keep in mind when figuring out your pricing.
- Think of the other ways that a client might reach new customers. How much would they expect to pay for a magazine spot? A TV ad? A billboard on a highway? If you’re charging less for a website than it costs to run a newspaper ad for a week, it may be time to re-evaluate your strategy.
- Price services aggressively, and you may end up surprising yourself with the outcome. As you’ve probably heard many times before, it’s far easier to negotiate a price down than up. Stop worrying about scaring the client away and start giving quotes that are a reasonable reflection of your work.
- Don’t get discouraged and second guess yourself when you encounter a competitor with lower rates. There will always be people charging less than you, but there will also always be those charging more. Keep that in mind the next time a client brings up the lower price of a competitor.
Even if your hourly rate is $50, someone will challenge it. The key to responding convincingly, in this case, is to be confident and act surprised:
- “Really? I’ve found my pricing to be quite competitive in this area.”
- Or, “Really? For (designers, writers, programmers, etc.) with my experience and skill-set, my hourly rate is very reasonable.”
Most of the time, your surprised demeanor and casual confidence will simultaneously disarm prospects and let them know that you’re worth your rate.
A diplomatic approach works best for me:
- “It’s great that you found a freelancer within your budget. If they meet your needs and fit your style, I highly recommend working with them.”
You can get more specific if your prospect is asking for a service that is outside your specialty zone. For instance,
- “I’m glad you’ve found an affordable designer who specializes in brochures. Please let me know if you need help with website design in the future. I specialize in websites and I’m sure I could provide you a competitive estimate.”
