When it comes to pricing your freelance services, I hear the same things from both seasoned and new freelancers.
“How should I price my services?”
My advice to you is to ask a simple question…
Do you want to be looked at as the Walmart or Rolls Royce of your industry?
Walmart is a very successful company no doubt, but they choose to compete on price and bargain deals.
Rolls Royce on the other hand is another very successful company that chooses to price itself significantly higher, and cater to a specific audience.
One has to do tons of advertising, and the other rarely does any advertising. (When was the last time you saw a Rolls Royce TV commercial?)
Choosing Your Path
Ok, ok, so how does this apply to freelancing?
If you choose to be the Walmart of your industry, there is nothing wrong with that. Just keep in mind you will need to fight a constant battle of pricing the lowest, while also doing more and more projects to cover your bills and lifestyle. It can quickly become a hamster wheel of never ending low prices and endless work hours.
If you choose to be Rolls Royce, you get the luxury of picking your clients, taking on less projects, and also earning a significantly larger income per project.
Most freelance creatives and professionals choose the Walmart strategy. They focus on what other freelancers are charging and try to compete on price and features. This is especially common on freelancing sites where bidding is necessary.
Their mantra is “I will do more than X for only $XXX.XX!”
The Rolls Royce crowd of freelancers have figured out something different though.
They are able to ignore the competition completely, and price 10 times higher. Instead, their mantra is, “If I can serve you as a client, solving your problem will cost $XX,XXX.XX.”
The difference is in your choice, and how you position yourself from the start as a server versus a seller.
Even if you are just beginning as a freelancer, you can start right away to position yourself as a Rolls Royce instead of Walmart by choosing particular projects that align with where you want to be.
As long as you price based on value and not by “features” you can quickly double your freelancing rates.
If you are already using the Walmart strategy and would like to switch, there’s good news – you can! The main problem you run into is being willing to let go of old clients that expect the higher prices.
You can fix this by simply emailing them to tell them you’ve decided to take a different course with your freelancing career or business. You’re doing this to better serve your clients and would love to welcome them in your new journey if they choose. Be clear that your pricing will change and you will be delivering more value in return.
Of course you should definitely deliver that value 🙂
So what will you choose?