You always turn in your projects on time. You go above and beyond for your clients. They often ask you if you’d like to work for them again. If this sounds like you, then it it is likely you give your clients great value, which means it’s time to ask yourself, “Am I charging enough for my services?”
How to Decide if You’re Charging Enough
For contractors, it is important to ask this question every so often. You want to be sure that what you’re charging reflects your cost of labor and expertise. To find out how much you should charge for your rates, look for the average rate for the type of work you do by either performing an online search on it and investing in market books that list the lowest, average, and highest rates for your field. Then, jot down which rates seem to fit you and the kinds of services you offer.
Cases Where You Should Charge More
There are several cases where charging more makes sense. For instance, if you are an expert at your field, charging more can give you momentum to keep producing exceptional work. It will make you more excited about what you do because your business will be growing financially.
It is also important to keep in mind that solopreneurs should charge four to five times what they hope to have after overhead, taxes, paying for software and hardware, and performing administrative tasks. Doing this will help them gain enough profit to continue sustaining their careers. For more info, see also: Are You Charging Enough for Your Time?
If you conclude that you want to charge more for your work, make sure your services are so good that every dollar your client is paying you is worth it. When they look back at your service, you want them to remember how well-done your service was, rather than how much it cost.
Important Things to Keep in Mind
If you’re worried that charging more might make it difficult for you to keep your clients, remember that clients who care about high quality work won’t settle for the cheapest offer. In fact, understanding which rates are perfect for you to charge can do wonders for your business, especially if you are great at what you do.
To learn more about what rates to charge for your work, feel free to contact us.
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This article is published by Will Sherwood | The Sherwood Group |Website Design | Graphic Design | Marketing Communications: The Sherwood Group has over 30 years of experience working with all sorts of companies, small and large. Our clients range from entrepreneurs to Fortune 500 firms, in nearly every business sector, from across the street to around the world (and yes, even Europe, China, and South America). Our goal is to create advertising, graphic design, website design, and marketing communication that still looks fresh and relevant 10-15 years later. Our mission is to stir your imagination and leave your competition shaken and wondering, Now what do we do?” We are located in Myrtle Beach, South Carolina.
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4 Comments:
By Rebecca Huffine 10 Dec 2014
I love this topic. I hate billing by the hour because my brain doesn’t work that way. Often my best ideas come at 10pm or even while watching tv. The model I have found works well for many of my clients is charging by the day on a fixed contract. That way, they get the benefit of in-house attention without the added cost. However, that model doesn’t work as well for projects.
By Mitch Duckler 10 Dec 2014
This is a very important question and interesting topic. Another angle to consider is whether you should be charging based on “value provided” rather than “time rendered.” When you do this, you’re far more likely to ensure that the fees charged are in line with the services being delivered.
By Brittany Hardy 10 Dec 2014
I struggle with pricing my services on almost every call I take from a potential client – perhaps it will come with time, but I find that each industry varies in terms of what they are willing to pay and what they have set aside for their marketing budget. I need to stop saying I will do a completely custom plan based upon their budget and instead build my system that works and stick with that offer 🙂 Great article!
By Diana Marinova 18 Dec 2014
Great post, Will – it is very hard to wrap your mind about this concept when you come from a low socio-economic country. I know that – I am from one 🙂
I am a good marketer, strategist, too – all highly paid skills. When I was starting I was charging $7 per hour because that *was* extremely good pay back in the day, locally. I quickly realized it’s pennies in the global world and that I am placing myself in front of the wrong crowd with these prices.
As my freelance experience grew, so did my skills, so did my prices. Today I still ask myself once in a while if it’s time to raise my rates yet again, and I usually do, once per year, mas o menos.
I have contact with many freelancers on a daily basis through my blog, and till date – 2 things are the hardest things for me to explain to a newbie freelancer:
1) you need a value proposition (what is it and how to figure it out)
2) you have more chances to succeed if your prices are higher than the average (if you are an expert in your field, that is).
Thanks for a good read!
~Diana