11.04.2009

Setting Your Rates and Sticking to them!



"You will, at some point, get the pricing on a project completely wrong." 
-Mark Boulton in the article Be_the_boss/Deciding How Much To Charge. Practical WebDesign September 2009 Issue


Whether getting a car fixed, buying a new home, or buying apparel everyone is looking for the best rates in town and clients are no different. They too want the best rate possible, especially in this economy. But what does this mean for you as a small business or freelancer.


Since small business rates are usually set based on overhead, the amount of money you want to make, and the time it takes to complete a job there is not much wiggle room for small biz/freelancers to negotiate with clients. But should you choose to lower your rates for clients you must consider the side effects. With services, especially design you get what you pay for and while you try to be sensitive to a clients budget you do have a duty to your startup/small biz to be compensated adequately.


IsrylDesigns recently had a client that we renegotiated rates in the middle of a project. Big no, no! It is great for firms to have business in this economy, however, you should not let a client pigeonholed you into keeping a job by lowering your rates. After reading Mark Boulton's article in Practical WebDesign, IsrylDesigns is more enlightened on rates and what they mean for the branding and well-being of a company.


Tips to better rate setting for small biz:

  • Provide a thorough quote that outlines the amount of time a project will take. Stick to the price in the quote.
  • Avoid renegotiating in the middle of a project.
  • Be ware of Discount Debbie or her friend Discount Dan – they are always looking for a discount but never want to cut back on the scope of the project.
  • Ask your clients budget upfront.
  • Get familiar with Good vs. Bad clients. What type of client do you want to provide services for.
  • Be okay with passing up a project if necessary. A better one will come along. But not if your business keeps devaluing its work by giving discount after discount.
Have another tip for us? Email it to isryl@isryldesigns.com!

4 comments:

  1. Thanks Danielle! I am working on a follow-up to this. Will let you both know when it is posted. :)

    ReplyDelete