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How much should I charge?
One of the most common questions amongst freelance web developers
is – “How much should I charge?” Visit any
popular web development forum and you will see first hand
that this particular topic has been debated to death.
Why is this question so common?
Firstly I think many developers when first starting out as
freelancers are usually unsure what to charge for their services
due to inexperience. Perhaps they have been asked to develop
a website for a client or are considering starting their own
freelancing business for themselves.
For whatever the reason, considering what to charge ahead
of time is essential and certainly something that needs to
be addressed in order for you to run a profitable business.
As a freelancer, you want to ensure that you get your pricing
structure as accurate as possible ahead of meeting with potential
clients. More importantly, before agreeing to any projects
or contracts.
The 3 main reasons for this are typically:
1. You want to be paid what you’re really worth
2. You want to ensure that you don’t underquote and
end up not being paid enough
3. You want to ensure that you don’t overquote and
lose the client altogether
Lets look at these 3 points in more detail.
1. You want to be paid what you’re really worth.
If you are confident that you can provide excellent service
and a high standard of work, then you should charge accordingly.
Pricing accurately is important, particularly if you want
to attract the right kind of clients.
If you charge cheap, you’ll attract cheap. Never lower
your rates simply to secure work. If a client thinks you are
too expensive, tell them that you are probably not the right
person for the job and move on. Typically, clients that want
to haggle over pricing, arent really worth having as clients
anyway. They are frustrating and usually have no allocated
budget and will question invoicing almost every time. Always
be competitive with your pricing but don’t be cheap.
Ive actually been refused work in the past for being ‘too
cheap’. Much to my surprise, when I first started my
freelancing business, I was only charging a third of what
industry professionals were quoting.
Needless to say, once this was brought to my attention, I
adjusted my hourly rate and began attracting the right type
of clients. I also began making more money. Before then I
was working long hours for next to no profits and constantly
having to justify my costs. Charge what you are worth, and
you will attract the right type of clients and make better
money.
2. You want to ensure that you don’t underquote
and end up not being paid enough.
Speaking from experience, theres nothing worse than a $900
website turning into a 6 month project. This is commonly known
as scope creep, and should be addressed in your proposal and
contract, ahead of time. However when this is not addressed,
and you are simply trying to win over a client by offering
them a ‘great deal’ this is what can happen.
You may be desperate for work, or you may feel somewhat hesitant
to quote what you really feel the job is worth for fear of
rejection. Take it from me, never EVER underquote, to satisfy
a client or to simply secure the job. Always quote correctly.
If a client rejects your offer, ask for feedback, thank them,
and move on. Underquoting on a job, may lead to you losing
control of the project, and it resulting in a loss.
3. You want to ensure that you don’t overquote
and lose the client altogether.
Sure, be competitive and provide high quality work, but be
realistic about your pricing. If you find that you are being
rejected time and time again, it may be because you are quoting
too high. Be mindful though that it also depends on the nature
of the project and the profile of the client to a degree.
Try to get a feel for what industry standards are by asking
online community groups or perhaps even calling a number of
web development firms in your area. Most often than not, they
will tell you their hourly rate.
Occasionally I will quote higher than usual on projects that
I’m really not interested in, because the work doesn’t
appeal to me or because the client doesn’t feel right.
Put simply, I price high because I don’t want to be
given the job. I wouldn’t encourage this, but in freelancing
you have this option and it can work to your benefit. If they
do accept, great, then its probably going to be worth my time.
Best of luck to you.
John
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