Collaborative post – may contain affiliate links
Anyone coming of age in the current working climate should know that there are significant changes afoot. Remote or freelance work is now the norm as more and more people break away from the 9-5. In many ways, this is an exciting change. Instead of settling for jobs which are less than ideal, the next generation can control their work/life balance. And, we all know that’s the best way to happiness.
But, with this freedom comes new responsibilities. Instead of being able to sit back and let a boss make difficult decisions, those going it alone have to step up to the plate. You’ll need to decide everything, from the jobs you accept, to the price you charge for them. And, pricing is exactly what we’re going to look at here. It’s a tough subject. Get it wrong, and you’ll fail to make a living. Worse, you could tarnish your reputation. In the freelance world, that’s a definite no-go. To ensure it doesn’t happen, follow these pointers when choosing a price plan.
Costs and labor
If you don’t know where to start when it comes to pricing, it’s worth estimating how much production costs you, and also thinking about the labor. Add up every expense you spend on each project. That includes printing costs, materials, and even a part of your internet bill if it features. Charging this much would mean that you cover costs but don’t make a profit, so you need to think, also, about your labor. Most freelancers charge more for larger jobs. If you spend eight hours on something, think about how much you can pay yourself per hour. Then, add this to your expenses to work out a rough price bracket.
Read available resources
No matter what your freelancing gig, you can be sure there’s a multitude of resources out there to help you here. The internet helps us all share these experiences in untested waters. Graphic designers talk about how much to charge. Journalists and illustrators do the same. Sites like SEO Jet even provide a good guide for those branching into SEO. You name it; there’s help out there for you. All you need to do is look for it, and learn from what you find.
Know your competition’s pricing
It’s also essential to know how much your competition charges. In fact, this is the most practical help you’ll find. Bear in mind, though, that it may not be best to charge the exact same prices. Instead, think about ways to produce a competitive pricing strategy compared to what they offer. This is the best way to set yourself above the rest. That said, don’t do this to the detriment of your profit. Bear in mind the pricing you developed when estimating costs and labor. Then, develop a competitive price list based on what you’ve found. If your overall price is over that of your competition, think about small ways to reduce it. Cheaper materials, for example, or finding faster ways to work.