1 00:00:00,770 --> 00:00:03,370 When you first start out, regardless of which model you go with, 2 00:00:03,370 --> 00:00:05,910 hourly or on a per-project basis, 3 00:00:05,910 --> 00:00:08,100 it can be tempting to price low. 4 00:00:08,100 --> 00:00:10,620 Try and stay away from this mentality. 5 00:00:10,620 --> 00:00:14,830 First off, not all clients view low prices as a great deal. 6 00:00:14,830 --> 00:00:17,320 You might be giving the impression that you're just not as skilled 7 00:00:17,320 --> 00:00:19,650 as the competition in your area. 8 00:00:19,650 --> 00:00:24,240 Avoid letting your price miscommunicate how skilled you are at your trade. 9 00:00:24,240 --> 00:00:28,830 Second, it is a difficult path to try and compete solely on price. 10 00:00:28,830 --> 00:00:32,210 The Internet is a global place, and a client can always find 11 00:00:32,210 --> 00:00:34,870 someone to work at a lower rate than you. 12 00:00:34,870 --> 00:00:37,720 You will be fighting a constantly losing battle. 13 00:00:37,720 --> 00:00:40,620 Instead, charge what you think you're worth. 14 00:00:40,620 --> 00:00:42,850 If your hourly rate is $60 an hour, 15 00:00:42,850 --> 00:00:45,210 and you feel like you can deliver on that price, 16 00:00:45,210 --> 00:00:47,340 then by all means do so. 17 00:00:47,340 --> 00:00:51,630 Take your competition into account, but don't build your prices around them. 18 00:00:52,260 --> 00:00:54,490 Before we conclude our discussion on price, 19 00:00:54,490 --> 00:00:57,770 I want to point out a few things that might be of importance to you. 20 00:00:57,770 --> 00:01:01,820 Besides deciding on a rate, designers and developers new to freelancing 21 00:01:01,820 --> 00:01:05,190 can make a few other pricing-related mistakes. 22 00:01:05,190 --> 00:01:08,890 When working on a project, don't charge only for the time you spend 23 00:01:08,890 --> 00:01:12,130 actually creating and implementing the client's solution. 24 00:01:12,130 --> 00:01:15,140 Beyond the time you spend actually working on the client's project, 25 00:01:15,140 --> 00:01:17,770 there are other things that you can be charging for. 26 00:01:17,770 --> 00:01:19,880 First are revisions. 27 00:01:19,880 --> 00:01:22,570 You won't always get the project right the very first time, 28 00:01:22,570 --> 00:01:25,160 and the client may ask for changes here and there. 29 00:01:25,160 --> 00:01:28,450 Now, if these revisions are in the scope of the project, that's fine. 30 00:01:28,450 --> 00:01:32,350 But for major overhauls, you should charge an additional fee, 31 00:01:32,350 --> 00:01:35,170 otherwise the client will just assume that they can ask for more work 32 00:01:35,170 --> 00:01:37,100 without having to pay you. 33 00:01:37,100 --> 00:01:40,110 It's also up to you to communicate up-front that any revisions 34 00:01:40,110 --> 00:01:43,250 outside of the scope of work will be charged. 35 00:01:43,250 --> 00:01:45,260 Second, education. 36 00:01:45,260 --> 00:01:47,450 If you're going to spend time educating your client 37 00:01:47,450 --> 00:01:50,490 on how to use the CMS you just incorporated into their site 38 00:01:50,490 --> 00:01:53,280 or teach them how to navigate the site in general, 39 00:01:53,280 --> 00:01:56,670 you're spending valuable time where you could be working otherwise. 40 00:01:56,670 --> 00:02:00,400 You should be billing them for any time spent on educational activities. 41 00:02:01,000 --> 00:02:05,440 Lastly, for set-up. This also applies if you're managing their hosting 42 00:02:05,440 --> 00:02:08,729 or any other stuff like that included in the final project cost. 43 00:02:08,729 --> 00:02:13,080 Basically, anything related to the project that isn't administrative work 44 00:02:13,080 --> 00:02:15,270 can and should be billed. 45 00:02:15,860 --> 00:02:19,590 Also, when you charge a client, you should be able to explain your prices. 46 00:02:19,590 --> 00:02:21,940 If a client questions a certain price point, 47 00:02:21,940 --> 00:02:24,130 it should be easy for you to tell your client 48 00:02:24,130 --> 00:02:27,450 why exactly the project costs what you have quoted. 49 00:02:27,450 --> 00:02:29,420 Most clients are actually okay with paying the price 50 00:02:29,420 --> 00:02:31,660 when they know what they're paying for. 51 00:02:31,660 --> 00:02:36,960 It's often a problem of miscommunication than the client not wanting to pay your prices. 52 00:02:36,960 --> 00:02:40,550 Finally, when you start out, you're free to choose either model. 53 00:02:40,550 --> 00:02:43,840 It might be easier to calculate an hourly rate and go with it, 54 00:02:43,840 --> 00:02:48,430 or you might be more comfortable with quoting a price for the entire project. 55 00:02:48,430 --> 00:02:51,300 Whatever you do, you should stick with it. 56 00:02:51,300 --> 00:02:55,910 Never quote a client one price and charge them something wildly different when you're done. 57 00:02:55,910 --> 00:02:59,550 If the client asks for extra work that would mean increasing the price, 58 00:02:59,550 --> 00:03:03,840 please discuss that with the client instead of just doing the work and charging them. 59 00:03:03,840 --> 00:03:06,950 Or at least make sure that they're aware beforehand 60 00:03:06,950 --> 00:03:11,190 that additional work always means further pricing discussions. 61 00:03:11,190 --> 00:03:15,340 Don't simply charge because you took longer to complete the project than you thought it would. 62 00:03:15,340 --> 00:03:17,770 That just means you didn't estimate the time properly 63 00:03:17,770 --> 00:03:19,960 and didn't communicate that to the client. 64 00:03:20,770 --> 00:03:24,850 Be as up-front as you can about anything price-related. 65 00:03:24,850 --> 00:03:27,920 The key to being a great freelancer isn't just being skilled 66 00:03:27,920 --> 00:03:30,130 at the technical aspects of your job, 67 00:03:30,130 --> 00:03:32,990 but more about providing a great customer experience 68 00:03:32,990 --> 00:03:35,490 that will make your clients bring their business to you 69 00:03:35,490 --> 00:03:37,750 over any other freelancers. 70 00:03:38,200 --> 00:03:40,210 Now, once you've established a rate, 71 00:03:40,210 --> 00:03:43,060 don't think of it as something that's set in stone. 72 00:03:43,060 --> 00:03:46,820 As you gain more experience, put together better pieces in your portfolio, 73 00:03:46,820 --> 00:03:48,980 and build up a client base, 74 00:03:48,980 --> 00:03:53,320 you can always re-evaluate your price to reflect your enhanced skills as a freelancer. 75 00:03:53,940 --> 00:03:58,200 Time your price increases and always inform your clients that your rates are changing. 76 00:03:58,700 --> 00:04:00,930 Think about when it's best to increase your rate. 77 00:04:00,930 --> 00:04:02,950 You could do it at the end of the year 78 00:04:02,950 --> 00:04:04,960 or when you're taking on new projects or even when 79 00:04:04,960 --> 00:04:07,410 your existing contracts end. 80 00:04:07,410 --> 00:04:11,060 To conclude, you can find prominent designers and freelancers 81 00:04:11,060 --> 00:04:13,660 who will say that hourly pricing is the worst 82 00:04:13,660 --> 00:04:15,870 as well as those who say it's the best. 83 00:04:15,870 --> 00:04:17,880 Everyone has their opinion. 84 00:04:17,880 --> 00:04:20,510 Pricing is not a science; it is definitely an art. 85 00:04:20,510 --> 00:04:24,860 At the end of the day, it really comes down to what you feel is best for you, 86 00:04:24,860 --> 00:04:29,620 and this is a happy place you will arrive at with experience and experimentation. 87 00:04:30,200 --> 00:04:32,780 If you're curious on finding out what other people have to say, 88 00:04:32,780 --> 00:04:34,760 check out the notes section below. 89 00:04:34,760 --> 00:04:36,740 I've included a few links. 90 00:04:36,740 --> 00:04:38,870 Now, there's a saying among freelancers, 91 00:04:38,870 --> 00:04:42,000 that if the client's not complaining, you're not charging high enough. 92 00:04:42,550 --> 00:04:44,680 Now, this doesn't mean you should annoy your clients. 93 00:04:44,680 --> 00:04:47,520 But you're definitely worth more than you think you are, 94 00:04:47,520 --> 00:04:49,930 and most people are often willing to pay for it.