4 Tips To Price Your Services
Many young professionals become shy when they have to set up prices for their services. Let’s say you’re a recent college graduate with a major in graphic design. You have decided to go on your own and start a company or simply freelance for a while to expand your portfolio.
How many of you actually struggled with service pricing? Realistically, you know that in this competitive field there are many designers who are way more qualified for the job. They have years of experience and an impressive portfolio to show for it. Whereas you are a new kid on the block.
So how much should you charge for your services and how do you get paid?
Most inexperienced freelancers decide to start off small. I have made that mistake as well. I thought because I am a newcomer in the field, I should charge less. Not only that, I did not charge anything upfront just in case the clients weren’t happy with the results, and that could potentially ruin my reputation at the very beginning of my career.
I did for a while. But after some time I have realized my clients are straight up taking advantage of me. Not all, of course. But hey, when people sense that they can squeeze some extra services and not have to pay for them, they will totally do it. As a result, the endless revisions, tweaks and edits, and months of chasing them to finally get paid. A simple flyer design would turn into a three-month struggle story.
Here are some valuable lessons I’d like to share with you. These tips can help you optimize your workflow and improve your relationships with clients.
Lesson 1. Create a workflow map.
First and foremost! Educate your customers about your work process. Come up with a step-by-step workflow model and make sure to introduce it to your client BEFORE you begin to work on their project. The more thorough it is, the better. Describe the services you offer in detail, specify stages of your creative process from start to finish. Come up with the workflow map and post it on your website, then make sure to share the link with your potential customer.
For example, if someone is requesting a logo design, set up the game plan from the start, make up the rules. Same as the client is choosing work with you, you are choosing to work with them. It has to be a mutually beneficial and respectful relationship where everyone knows what to expect and follows a structured procedure.
Set up a price for your “Basic” package, list the number of revisions, estimate the delivery date, and make sure to note that any additional requests that are not listed in the “Basic Package Description” would be at an additional charge. Most importantly, follow through with your rules. Make sure to meet your deadlines and provide 5 versions of the design if that’s what you promised.
Pricing.
Pricing your services is a sensitive subject for a lot of freelancers. A common mistake people make at the beginning of their career is charging too little. There are many reasons why people tend to do that. Lack of experience, confidence, or just shyness are the most common ones.
Lesson 2. Avoid trying to beat a competitor’s price.
Sometimes we think if we lower our price way below competitor’s, people would want our services more. Believe it or not, it is not true. When we see a lower price for the same type of merchandise or service, it actually looks suspicious. We ask ourselves why is this product so cheap? There’s probably, something wrong with it. A serious company that would actually be a good asset to your list of clients will most likely pass on that questionable offer and go somewhere else.
Lesson 3. You are talented/qualified/experienced enough.
If you think you are ready to start your own business, you already know that you have the necessary skill set to succeed. There is no need to sell yourself short and be afraid of the experienced sharks in the field. Creative professions have room for all types of talented individuals with a unique vision and a new perspective. Don’t be afraid to bring your fresh ideas and concepts to the table and use them for your projects. Know the rules and core principles of your field, follow the trends, never stop learning, innovate. And even though it sounds cheesy, believe in your talent.
Lesson 4. Charge upfront.
When was the last time you bought something online and didn’t pay upfront? The answer is NEVER. Always make sure to charge at least 50% of your price before you begin to work on a project. The remaining 50% can be requested upon completion before delivering the final files. DO NOT send final files before you receive the payment. It’s not that you shouldn’t trust your customer, It just makes the workflow smoother.
These tips really apply to any industry, not only graphic design. Do not be afraid to talk about money with your clients. Being direct and strict about the services you provide only makes you look more professional. Some topics seem to be hard to discuss. But if you think about it, your positive attitude, straightforward approach, and the level of professionalism are the factors that ensure the effectiveness of your communication.
P.S. While setting a price for your next project, remind yourself of that student loan you’re still paying off, and remember – you are a highly skilled professional whose goal in the field is not only to enjoy your work but also be able to pay the bills.