The Reward is Lotsa Cash…
One of the least favourite tasks of a freelancer is pricing themselves and their services. There is always the fear of pricing yourself out of the market or undervaluing yourself, time and service. Knowing what, how and when to charge what, is still an uphill task for me. Quite frankly, I have charged for services that left me feeling like a complete idiot wishing I would rewind the hands of time to make things right.
Same Cast, Different Scenes
The first step to finding the right price for your service(s) is to understand what other professionals similar to yours charge for the same services. If you are a graphic designer, find the going rate for the same services. This can be challenge as majority of freelancers would be hesitant to give you an exact figure. The key here is to get a rough estimate from a handful of your colleagues. Do not forget factor in market forces, experience/skill level and in some instances, education level.
Birds of a feather…
The second step is to understand your target market and segment pricing accordingly. My services are suitable to everyone who needs their words put into writing. However, I have specialised in business writing. And further to that I have segmented all my target market with their own pricing. Having a segmented format will ensure I do not lock out clients who may need my services but cannot afford the suggested price. This has greatly helped in offering my services effectively.
Riding the Bus
The last step would be to fully understand the project at hand before putting a figure forward. Those who bid for projects on bidding sites, are familiar with the per hour format. Here in Kenya, the concept is relatively new. On the per hour basis, one needs to factor in the time needed to fully complete the project. For example, if you are offering writing services indicators to factor in could be research time, drafting, writing, editing and proofreading before presenting the final copy. These should include billable hours.
On the other hand, there are projects whose pricing cannot be calculated on a per hour basis which means calculating the project on a wholesome basis (like I do). For short-term projects or gigs such as writing a brochure, business profile, article e.t.c. the final price will include time (urgent, immediate or can wait), resources and work done.
For the long-term projects (those that take months), I have found the safest route to go is on a retainer basis. This in a sense is much cheaper for the client in the long run than if I was to charge per project basis.
Having a firm understanding on how to price yourself as a freelancer will go a way in establishing the foundations of success and financial freedom.
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