Pricing our services is often one of the most challenging tasks for freelancers, yet it’s the most important one when trying to make a living. Newbies, in particular, are terrified to ask for their worth. But even the most seasoned pros sometimes struggle to set the right rates. If you charge too much, the potential client may decide to hire someone else. But if you charge too little, you may be perceived as ‘cheap’ and end up struggling to scrape by. So how can you figure out the best pricing for your business? We’ll let you in on a few secrets for setting your rates.
There’s nothing wrong with making a profit
Any business owner knows you’re in business to make a profit and there’s nothing wrong with that. It’s how you grow and become financially independent. So if you’re barely breaking even, you probably set your rates too low. When it comes to setting your rates, the first thing you want to do is figure out your expenses. How much do you spend on products and other resources? What are your travel expenses? How much time do you spend on other tasks, such as marketing and administration? — Yes, this is an expense too! You’d want to add about 40–50% profit on top of your expenses.
Value vs cheap
“But what if my clients think my rates are ridiculous?” These doubts and fears are natural and normal, but they don’t define your worth. No matter what you charge, you will always be too expensive for some people, and that’s okay. There’s a place in the market for every price point. And don’t forget, you’re not just selling a service, you’re selling your time as well. Squander it on low-paying gigs, and you won’t earn a lot. Instead, focus on offering quality services and gain clients that will pay your worth. You can work less and make just as much as you did at a lower rate. Besides, you want to have enough time do a good job, so clients will leave glowing reviews and keep coming back for more. Therefore, the value is the keyword you should be focusing on, not cheap.
Know your worth
People will pay you what they think you’re worth, so it’s important to know your worth. Take a moment to think about what your clients’ needs are and how you meet them. What unique skills do you have that makes you qualified to serve your clients? What do you do that no one else does? What problems do you solve for your clients? What value do you give them? Answering these questions will help you see the value your clients get from booking you. And once you know your worth, you need to start taking responsibility for it and communicate your value to clients.
Setting your own rates is one of the perks of being a freelancer. Your rates reflect your worth and help you attract your sweet spot client. At Stylemee, we leave you in charge of pricing your services because we believe in transparency and flexibility. Sign up now and join a talented community of freelance pros that make style accessible for all!