I recently took part in a great round table discussion with a group of freelancers in Seattle. I knew going in that our topic - pricing our services - was going to provide some great dialogue; I just didn’t realize how complex the process of establishing a pricing strategy truly is as a freelance professional. After about 90 minutes in and numerous rounds of coffees, beers, and horror stories, we had really just scratched the surface of this when we called it a night. That was last week and now the Northwest Freelancers Association is in the process of developing a series of workshops and templates to help our members fully address this topic and feel confident that their prices are not only fair, but will also sustain their personal financial goals throughout the future. In the meantime, below are three nuggets we came up with that should provide a solid framework to build from when trying to establish your prices in your own freelancing business: Every freelancer is asked the awful question: How much does X cost? Regardless of what X represents in your business, the answer should always be the same - At this point, I’m not sure. You absolutely have to dive deeper into the conversation and fully understand what the client is trying to accomplish. Without fully understanding a client’s needs, it’s impossible to provide a fair and reliable estimate. By blindly providing a “rough estimate” at this point without engaging deeper with the client is only setting the project, the client, and your reputation up for ultimate disaster. The advice seems basic, but in reality is a very common and an avoidable outcome I see all the time. Additionally, hold yourself to the same rules you provide for clients. Don’t ask for or assume something without providing a clear picture. What’s your budget? is less likely to yield as reliable answer than How did you establish your budget? Bottom line: be specific. One of the most difficult things to do when pricing your services is to take a step back and evaluate how your pricing structure may influence the way client’s perception of you and your professionalism. While it’s a nice thought to offer different rates for various types of clients or services (for profit v. non profit or coding v. testing), this is generally a bad idea. If you bill, and therefore value, an hour of your time for Client A at $100 then why would you only value yourself at $75 for Client B? If you charge $100 per hour writing HTML then why do you only charge $45 per hour for site testing? Don’t diminish your value to meet a client’s needs, rather, modify the scope or hours involved instead. By doing so, you will ultimately avoid any conflicts in the future as well as help yourself maintain consistency in your service, communication, and professionalism. As long as we’ve put in the time and effort into establishing your rates and providing your client with an honest estimated cost for the project, then the price shouldn’t change. Don’t become a bargain bin freelancer and turn yourself, your team of freelancers, or your work into a commodity. Price and psychology go hand in hand. If you present an estimate to your client, who in turn wants you to knock 10 or 20 percent off, which you then do, you may think that you’ve won the job when in fact all you have done is told the client I was charging too much in the first place. If you want to work with this client, then do some things to alter the project, but don’t alter your rate to fit a client’s budget. We all need work, but we also need referrals and repeat business. By allowing ourselves to be negotiated down, we open the doors for lower future payments, lower quality referrals, and lowered expectations. Regardless of what you do or how much you charge, there will always be someone that can do it for less money, and guess what, you are doing it for less money than someone else. Be confident in your pricing and value your time appropriately. -- These are just three simple reminders to keep yourself honest and help the freelance industry as a whole. Being a freelancer is an incredibly challenging responsibility. It’s not just you that you’re representing, but you help to represent an entire community of other independent professionals working just as hard as you are to earn a living by doing the work we enjoy. Pricing your services fairly, delivering on your promises, and maintaining your professionalism will help you to spend less time chasing dollars and more time booking clients.
Tweet 1) Discourage ambiguity
2) Maintain your consistency
3) Be confident and firm in your pricing
Monday, June 27, 2011
Pricing Conundrum for Freelancers
Monday, June 20, 2011
Online Collaboration with Top 50 Ranches
Q: Sean Crafts (Mavenlink Co-Founder) – Can you tell us a little about your business?
A: Jody Dahl – Top 50 Ranches is a ranch destination travel website designed to take the guesswork and confusion out of finding dude ranch vacations or other top ranch vactions at the most breathtaking, authentic and luxurious ranch and riding destinations in the world. We have ranches all across the United States, including California, Montana, Colorado, and Wyoming, along with top ranches in Canada, Australia, New Zealand, and Argentina. Q: Sean – How has Mavenlink helped your business? A: Jody – As a small business owner, Mavenlink has directly helped me by making it easier to connect with my Top 50 Ranches team, which are primarily consultants working with me online in remote locations. We utilize Mavenlink as our platform for online collaboration in real time. I always feel completely informed and up-to-date and it's all in one easy-to-use, convenient workspace. I don't have to search through a slew of old emails. I can just easily visit our project workspace and find the exact conversation. Whether it’s information that I need for later use or if I need to refer back to my online team's expertise, it's always there at the touch of a button to quickly access. Also, I really like the fact that all payments can be made and are fully tracked through Mavenlink. Q: Sean – Anything else you want to add? A: Jody – Yes, Mavenlink is definitely an ideal, convenient location to manage my online projects for Top 50 Ranches. Before I jumped into Mavenlink, I didn't even realize this was an option for project management. I will definitely spread the word about Mavenlink as it is seriously worth the investment in this product. Anything that saves me time is something worth the minute financial expenditure this requires. I cannot speak highly enough about this product and recommend for other businesses to try it. Once you've tried it, you will be hooked for all your online business collaboration. Jody Dahl and Top 50 Ranches can be found on Twitter and Facebook so go say hi and check out some of their amazing ranch vacations.
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