One challenge for new freelancers or consultants is coming up with prices. Many will attempt to set their rates as low as possible to attract new clients. Soon, they’ll learn that’s a mistake because people don’t trust new businesses with low prices, and they won’t earn enough to make a living.
Do Market Research and Give It a Try
It’s worth performing intensive market research to understand what clients pay your competitors. Once you know the number, you can set your pricing to compete. You may want to stay in line with the low end, or even beat it slightly, but be careful to offer deep discounts. It’s much more vital that you charge enough to create a sustainable revenue stream.
Be Reasonable and Provide Value
Any pricing you provide should make the transaction a good deal for you and your client. That should be easy enough to do because many of the people willing to hear your pitch are already overpaying for similar services. They’re entertaining your offer because they’re not satisfied with their present provider. If you have an answer to the problem that you offer to people at a reasonable rate, they will respond. Most individuals are open-minded to entertaining offers from new providers.
Be Strategic With Your Pricing Model
You may wish to keep your rates slightly higher when initially quoting new prospects. That way, if they ask you if that’s your best price, you will have wiggle room. Otherwise, when you start with a lowball bid, you have nowhere to go when they demand a discount.
The precise strategy you decide on will depend on your industry and competitors. If any of them will come down on price, you’ll need to consider than in your strategy.
It’s even possible that charging a higher price may be the best strategy. If any of the other consultants and freelancers do shoddy work, you may insist on a premium because you provide superior quality. The fact that you’re willing to charge more and stay firm with your pricing will help your esteem grow in the eyes of your prospects and customers. The low-price strategy attracts one kind of client, but for long-term growth, charging more is generally the best idea.