Designer Tips - Pricing Strategy

A question most freelance designers will ask at some point is this:

"What can I charge and will it get me that design project?"

When you are running your own business it really matters that you bring in the dollars, or you just can’t keep going. You will need to seek ways to maximise the money you are making, sometimes to do this we actually reduce our price to make it more appealing. But sometimes it can have the inverse effect and we loose the customer because they feel that your quote really isn’t understanding the scope of the job and you have underestimated the project. 

You may ask yourself why this happens. How is it that people pay a higher price for something that is mediocre? This can be confusing, but you should understand by now one of the unspoken rules of business: pricing does not determine quality.

Unless you are IBM, you cannot charge premium prices for your services and expect people to buy them just because of the quality. There’s lots that people take into account when deciding where to take their business. Whether you run your own or work freelance, it is important that you get your fees right. It will make a huge difference to your bottom line. Here are two pricing tips that can help you earn more.

Price is based on the value of your work

How valuable is your work to the client? This is an important question you need to ask yourself about every client who requests your services. We work in a service industry, and there is no such thing as a standard pricing policy. This is because every client will have different needs for our service.

You need to plan a solution to be used for the client, so that you can set the price right. It is important that you understand how valuable your work will be to the client.

Itemise your design project stages

Your client should know how much they are paying for each service you provide. If you just quote a single figure, the client might ask you to break down what you are charging for the project. Try as you may, most customers are going to think you are ripping them off unless you detail your expenses.

A lot of clients might not require all of your services. They may want you to design one piece of the design project maybe the logo but not the website. In this situation, your itemized pricing will make things quite clear what you are offering while saving you time and effort re-quoting and justifying your figures.

Happy quoting!

 

October 01, 2014 by Mags Gaffney
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