My proposal was up to $12,500…and I was starting to get nervous.
Would I scare the prospect away? Would they be turned off? What if they put the project on hold or went elsewhere?
Those were the questions racing through my mind a few months ago, as I worked on a proposal for a new prospective client.
What had started out as a $6,000 web copywriting project had now more than doubled in value.
Not my idea.
After getting my original proposal (which they were fine with), the prospect decided they wanted to add a few brochures to the project. They also figured this might be a good time to have a case study drafted.
It was all music to my ears…until I tallied up the numbers and saw the final figure: $12,500.
I started to worry that we were now in dangerous territory. It’s one thing to approve a $6,000 project. But $12,500?
A project that size would probably get the attention of people outside of the marketing department. Folks who might not know what professional-grade copy, search engine optimization and consulting goes for these days.
My fees were very fair. But I was worried that the prospect might not see it that way, now that we were at more than twice the original project amount.
So what did I do? Before even sending out the proposal (or getting any indication from the prospect that this figure was out of line), I began to cut my fee.
I trimmed wherever I could, justifying it with, “Hey, we’re in a recession. We all have to make some sacrifices to land work.”
Fortunately, I never sent out this bargain-basement proposal. Instead, I put it away and slept on it. The next day, I realized my mistake.
I had quoted out of fear. As a result, my total fee for this project was much lower than it should be. It was significantly lower than what others charge for the same work, even in this economy.
So, I brought it back up to where it should be. I then emailed the proposal and followed up a few hours later.
The prospect’s response: “Looks good, Ed. When can you start?”
Here’s what I learned that day:
1) Consistency and fairness are paramount. When quoting work, base your fees on what the project is worth — not some flaky “I think this might scare them off” approach. And besides, who are you to judge what the client is able to spend? Quote what it’s worth and you’ll always sleep well.
2) It’s not your fault that the client wants more work done. The reason this proposal doubled in value was that the prospect ADDED to the scope. It had nothing to do with me. No reasonable person would expect you to do twice the work for just a few dollars more.
Finally, it pays to be prepared. Had the client questioned my fee, I would have explained why it went up the way it did. I would have gone through it line-by-line. And I would have emphasized why I’m the best person for the job and why they’re getting great value.
Ever been in a similar situation? How did you react? How did it turn out?
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Ed Gandia is the co-editor of The Wealthy Freelancer and publisher of the biweekly newsletter, The Profitable Freelancer. To get a free copy of “10 Smart Ways to Grow Your Freelance Income in a Recession” and 3 other free reports, visit www.TheProfitableFreelancer.com
{ 15 comments… read them below or add one }
Great article! I learned a lot in just 3 minutes!
Ed,
You tell a common story for a lot of independent professional writers, and your suggestion to hold the line is an important one. Below are a few other things that might help as well:
1. Ask someone else if the rate seems fair. When you work alone, as many writers do, it’s easy to project your own fears on the customer. Your client might very well be prepared to pay more than you think is comfortable. Be prepared for that. Try to start thinking in terms of your cost as an expense that comes out of company budget, instead of your own pocket. In Ed’s example, 12K seems like a lot…especially if you think about it in individual terms, but 12K as part of a 100K-200K marketing budget is another story altogether.
2. Sleep on it. You said this, but it’s worth mentioning again. Think of how much more effective your writing is after sleeping on it…same goes for quoting.
3. Prepare quotes fast, but don’t rush them. Taking the time to think about quote preparation is critical.
4. Look to compare…why are you considering dropping your rate? Because the economy is sputtering? Is your gas getting cheaper, your groceries, your bills? I don’t think so. Instead of considering a rate cut, consider more flexible payment terms, or something akin to that…get creative….accept credit cards, for example, which pays YOU right away, and helps your clients balance their own books with more flexibility.
Always keep in mind that the material you create for your clients helps them bring in revenue. As such, you create a high-value product they NEED…just like you need gas, food and electricity. Don’t sell yourself, OR your clients short. They’re depending on you to not only be a great writer, but a great business partner as well, so play the part!
Thanks for allowing me to contribute to the conversation, Ed!
Cheers,
Doc
Wow. I’m in this spot right now! I just wrote my very first bid letter and sent it out on Monday. I am EXTREMELY nervous because I felt, exactly as you did, that they are going to think it is way too much money for the work I’ll be doing. When I initially wrote the bid, I was about to include a discount b/c I found them through a good friend of mine. But my hubby stopped me, telling me my clients will always be a friend of a friend and where would it stop? So I sent it out without reducing it and am now nervously waiting to hear what they think. I hope I didn’t blow it!
“Feel the fear and do it anyway.” It wasn’t until I adopted this mantra that I began replacing lower quality clients with better ones. I still lose out on jobs due to price, but it’s important for me to remember that if the prospect thinks my prices are way too high, they aren’t a good client for me. I wouldn’t have gained the A-level clients that I now have if I’d let my own pricing fears hold me back. I know what other copywriters charge and they aren’t better writers than me. Many aren’t even as good as I am, yet they’re commanding high fees. I try to keep this in mind when doubts start nipping at me.
All great comments, everyone! Thanks for chiming in. Pricing is a huge topic that deserves considerable discussion. Appreciate your sharing these insights.
One key point to keep in mind is that these ideas apply to ALL freelancers, not just writers.
Also, I couldn’t agree more with Doc that what you quote might seem “high” to you, but in most cases it’s not a big deal. And I love Eileen’s “feel the fear and do it anyway.” What a great philosophy to live by! (Still have no desire to parachute or bunjee jump, though!)
When I was in sales, one of my mentors once told me, “Don’t quote with your wallet.” How right he was.
-Ed
Quoting projects is my least favorite aspect of being a freelance copywriter. I’ve found though, that like anything else, the more you do it, the more comfortable you become with the task. I’ve also learned that it’s okay to lose a job due to price. After all, my goal isn’t just to work more; it’s to make more for the work I do.
If you feel uneasy quoting a high number, remember that numbers are numbers. They aren’t inherently “high” or “low”, these are just labels that we attach to them. Recognize that if you have the power to convince yourself that a number is “too high” you also have the power to convince yourself that a number is just right. Ed managed to do this by sleeping on it – always a good idea. Another way to do this is to stand in front of a mirror, look yourself in the eyes and say the number aloud to yourself… “My fees for this project will be $12,500.” Keep saying it until you’re totally comfortable with the statement… may take 20 or 30 attempts or more to convince yourself but it’s worth taking the time to do this exercise because “quote anxiety” will keep rearing it’s ugly head until you convince yourself of how much your services are really worth… (which is usually more than you think they are right now ).
Great advice!
I just had a ‘feel the fear’ moment, because I had to remind a client to pay their deposit. It’s a few days overdue, and is needed to confirm their photo booking. Yes, I know I risk the full payment on the day if they cancel…
Initially I didn’t want to because I thought they may think am hounding, but realised that’s its standard business practice to make sure they’re not wasting my time. It’s also hard to fill the day on the last minute if they cancel.
This way I know if they’re serious/wasting my time. We’ll see what happens…
Okay, I just heard back from my very first potential client-the one to whom I sent the bid letter I mentioned in the comment above. They did pay the initial deposit I requested, but wrote a note on the bid letter which said: “We want to send the deposit to get the process started, but we’d like to call you next week to discuss your fees.”
If this is as I think, and they are concerned that my price is too high, what do I say? Unfortunately I don’t have a sales background and I’m not a smooth talker! (Also, I really do want this job as I need to build my portfolio.)
Holly, did they sign an agreement agreeing to pay your fee? Because if not, they could try and wheedle you down even though they’ve already sent the deposit. I’ve had prospects like this before, who are very prompt at sending the deposit, and then procrastinate and come up with every excuse in the book why they haven’t sent or faxed the contract. I find it nothing short of manipulative, it raises red flags for me, and I simply won’t work with these folks.
I have been here as well. I was doing a few different proposals a couple of months ago and just jotting figures on a piece of paper to figure out in my head before writing them into the proposal and adding them up. Once they were added up I started doing exactly what Ed did. I started thinking I should remove items and that the client would never approve it.
I also did what Ed did and just gave it to them unrevised. However unlike Ed I couldn’t help but make a few comments when I gave them the proposal that it “might seem high, er, but just look it over and…” kind of things. Fortunately for me my mouth didn’t talk me out of the work and they approved the contract as is.
It is easy to have these conversations with ourselves when nobody is around to remind us of our value. Thanks for the reminder.
Gee Ed, I hope you don’t mind us having an entire conversation on here!
And yes Eileen, they did send me back the signed bid letter. They are a smaller company and I think they want to be fair; but they have never hired a writer before and were a bit shocked at the cost. But your point is a really good one to keep in mind about making certain I get the signed contract back before starting the work! Thanks!
I’m loving this discussion! Keep it up as long as you want — no need to apologize, Holly.
Holly – sounds like they might have a bit of a sticker shock. But at least they trust and value you enough to proceed with this first project. If they bring up fees in this next call, don’t worry. Just be prepared to address the issue. Many different ways to approach that, including talking about the value you bring to the table, the fact that your fees fall well within the range of professional-level copywriting, etc.
I almost never discount a fee once I quote it. Instead, if I find that the client really wants to haggle for some reason, I offer to give him/her additional value for the fee. Maybe a copy review on a sales letter, email or landing page. Or maybe short email promo copy for the case study they want me to write. In other words, something that has high perceived value but won’t take me more than 2 or 3 hours to complete.
If that doesn’t fly and a price cut is the only way they want to go, I do a give-and-take, where I’ll ask for something in return for a small discount — might be better terms, a larger deposit, another deliverable added to the project…you get my drift.
This approach not only trains the client to stop asking for discounts or lower fees…it also makes everyone in the negotiation feel like a winner — like they got something out of it (there’s a bit of psycholoy behind this approach, which I learned from Roger Dawson, author and brilliant negotiator).
Something else you might want to consider is to share your master fee schedule with clients when you first engage with them. Once you’ve had that initial value discussion and they indicate that they want to work with you, send them your fee schedule. This will help them see where you typically fall on a variety of projects…and allow them to self-qualify based on price alone.
This bit about sharing your fee schedule is a bit controversial. But sinnce I started doing it about a year ago, I qualify prospects faster and avoid wasting time on proposals and discussions that go nowhere.
But that’s another post altogether….
Thanks, Ed. That is all really helpful information. I’m meeting my new client tomorrow and I’m dreading the discussion. But I really appreciate your comments here because at least now I have an idea of what I can say when the topic comes up. Wish me luck!
You bet, Holly! Good luck tomorrow. Let them do most of the talking. Try to really understand what (if any) concerns they might have. Say less than you normally would. And if you can’t think of a good solution while you’re there, tell them you need to think about options and get back to them. If you have to, sleep on it.
You’ll do just fine. Most of the time, these things never turn into the messy discussion (or unconfortable discussion) that we expect or imagine.