Comments on: The Biggest Pricing Mistake You Can Make

By: Resources « The Business End of Freelance Writing

Resources « The Business End of Freelance Writing — Wed, 07 Jan 2009 23:33:26 +0000

[...] http://thewealthyfreelancer.com/2008/09/the-biggest-pricing-mistake-you-can-make/ [...]

By: Kevin Webb

Kevin Webb — Sat, 27 Sep 2008 18:34:38 +0000

Pete,

What valuable advice! You put the mirror talk idea so well. Some of us have heard about talking in the mirror with affirmations, but you remind us of the effectiveness it has in getting us to believe that we really can ask for – and receive – the top fees we deserve. Thanks for that.

Maggie, sounds like some more sound advice with leaving a voice mail to learn from how we communicate our fees and confidence. Great idea.

Kevin

By: Maggie Chicoine

Maggie Chicoine — Fri, 26 Sep 2008 12:23:35 +0000

@Pete Savage – exactly! Do the practice at the mirror. Then, call yourself and leave a voicemail, so that you can hear your pacing and your pitch. If your voice trails UP after saying your fees, you won’t be convincing to your client. Listen for hesitation, throat clearing. You can also ask a friend to call you or work with face to face.

@Paul Lima – thanks for posting this link!

- Maggie

By: Victoria Ipri

Victoria Ipri — Sun, 21 Sep 2008 14:13:21 +0000

In the 80s, my mother and I owned a cleaning service based on the team-cleaning concept, long before that was the popular thing to do. Our fees ran from $60-$75. No one ever balked at the cost, which was a good deal higher than the going rate, because 1) the work we did was well worth the extra cost 2)we quoted a flat fee, not hourly, which was the custom at that time. Ocasionnally, a client noted it only took an hour and a half for two or three girls to spotlessly clean their home, as opposed to the cleaning person they had previously, who stayed all day. At that point, they would often say to us, “Your people were here for less than 2 hours! That’s $37.50 an hour. That’s ridiculous!” You can only imagine how we responded, of course.

The point is that a flat rate always beats an hourly rate. Something happens when you charge by the hour- the client becomes a babysitter, wondering how long you’re taking, and if you actually worked on the project as many hours as you did.

I’ve always found a flat fee to be far more professional in most instances and frees you from having to justify the time spent to the client. For very small jobs that might take less than an hour to complete, it’s good to know what your hourly rate is in your own mind so you can charge a minimum for those little things that come up.

Pricing your services is one of those hot topics that never seems to be answered. Freelancers are as much consultants as they are service providers and, as more and more people leave the 9-5 to jump on the freelancing bandwagon, your professionalism and personal USP will allow you to set yourself apart by charging based on what your services are actually worth, not simply on what everyone else seems to be charging.

By: Direct Response Copywriter DK Fynn

Direct Response Copywriter DK Fynn — Sat, 20 Sep 2008 20:11:15 +0000

So if you’re going to make a mistake in quoting, it’s best to err on the side of being too high, instead of too low.

Of course, it’s best to be spot on, but I would say that if you’re quoting a fee, it’s best to quote high.

By: Pete Savage, Editor

Pete Savage, Editor — Wed, 17 Sep 2008 19:01:26 +0000

Great posts! Now… it’s one thing to get all psyched up and tell yourself that you’re GOING to start quoting higher fees on your very next project, but it’s quite another thing to actually do it! If you’ve got a client on the end of the phone, it’s going to feel strange saying you charge $1200 for a certain type of project if you’re used to charging $750. Whenever you talk pricing, you ALWAYS want to sound confident and in control, but practicing live on the phone with real prospects is not the time to be experimenting with raising your confidence. So… get yourself used to your “new rates” by practicing reciting them in the mirror. Look yourself straight in the eye and say, “I charge $1,200 to design a logo” Or “My hourly rate is $100″ (Or whatever). Say it over and over again until you can take yourself seriously… then you’ll have the confidence you need to ensure your clients do too. This is one of those ideas that sounds ridiculous… but it really, REALLY works.

By: Ed Gandia, Editor

Ed Gandia, Editor — Wed, 17 Sep 2008 14:47:38 +0000

Paul – You said something that was so powerful, it bears repeating:

“If you don’t have work coming in, spend time marketing your services and looking for clients who can afford you.”

What most freelancers do is lower their fee when they need the work. Big mistake. Instead, we should all be working harder at promoting our services to companies that CAN afford us.

That’s a much better long-term strategy. In fact, it’s the only WINNING strategy!

By: joey @ theunjob.com

joey @ theunjob.com — Wed, 17 Sep 2008 06:28:00 +0000

hey steve! great points raised in this post, although I do find it frustrating sometimes that there are quite a few low ball bids that win some client projects on elance (usually the bulk article writing, $1/500 words projects, etc). I really do feel that if you bid too low on a project, your tendency also isn’t to give that project your best shot at all, and not giving 100% in the freelance writing business can lead to some roadblocks later on!

By: Under Pricing Your Writing Is A Big Mistake!

Under Pricing Your Writing Is A Big Mistake! — Tue, 16 Sep 2008 17:42:03 +0000

[...] I was delighted to discover I’m not alone. Steve Slaunwhite who blogs at The Wealthy Freelancer (don’t you just love the affirmation of that blog title?) says the same thing from a whole different angle in an article called: The Biggest Pricing Mistake You Can Make [...]

By: Paul Lima

Paul Lima — Tue, 16 Sep 2008 05:56:32 +0000

A potential client had an editing job that required fast turn around. She asked me my rate. I gave her my hourly rate (I do not adjust my writing rate down for copy editing as some people do). She said that my rate was a tad rich for her company (a major life insurance company). I asked to send me the job so that I could give her a firm quote. I said, “My hourly rate may seem high, but I’m fast. And effective.” She laughed and sent me the document. I did a quick calculation, sent her my quote – and landed the gig. She had received quotes for twice as much from people who charged half as much as I do. She was happy; I was happy. Win-win. I’ve just finished my SECOND job for her.

Do I land every gig that I quote on? Nope. And that makes me happy. It says my rate is right where it should be, for me. Set your rate; stick to your guns. If you don’t have work coming in, spend time marketing your services and looking for clients who can afford you.

Note: If you are looking for an industry rate standard, save yourself some time and stop looking; there isn’t one. You’d think there’d be a standard rate for something like a media release – standard format and length; a commodity, really. There isn’t. I know people who charge $250 dollars to write media releases and people who won’t touch them for under $1,250. Set your rate based on what you need to earn a living, on the value you offer and on the scope of the job — type of writing, required meetings, research and interviews, number of words/pages, approval process, estimated number of revisions and so on.

Paul Lima