PRICING is just a touchy subject. Freelancers, content creators & artists, how do you decide on the price you charge for your services? Gather around.
(thread)
(thread)
This conversation cropped up on twitter a few months back and I realized that many people (freelancers, content creators and even artists) don't know how much to charge for what they are offering.
How much do you charge for your services?
How much do you charge for your services?
1. Competitor pricing
★ Look at other people in your niche and what they charge.
★ If you are an online freelancer, look at what other people charge on their profiles.
You might have to swallow your pride and ask directly. #createbrandbuild
★ Look at other people in your niche and what they charge.
★ If you are an online freelancer, look at what other people charge on their profiles.
You might have to swallow your pride and ask directly. #createbrandbuild
After you ask, set your price is in that range.
However, if you feel your value is higher, add. Expect the "you are too expensive" from some brands.
Sometimes you can be successful still with higher pricing.
Be confident in your pricing!
However, if you feel your value is higher, add. Expect the "you are too expensive" from some brands.
Sometimes you can be successful still with higher pricing.
Be confident in your pricing!
2. Cost Plus Pricing
Add your costs for producing that content to your fee. Add both the (Fixed and variable costs)
Fixed cost - Doesn't change. You determine this. (Your value, expertise + time).
Variable - Depends on the gig. (Costs of gear, internet, transport, photog..)
Add your costs for producing that content to your fee. Add both the (Fixed and variable costs)
Fixed cost - Doesn't change. You determine this. (Your value, expertise + time).
Variable - Depends on the gig. (Costs of gear, internet, transport, photog..)
Allow me to explain a bit more about this pricing model.
Eg. Using examples.
- A blogger setting a cost for a campaign will have to account for gear, photographer costs (fixed costs). Time spent writing, time spent editing photos & work, social media campaigns for the brands etc. (variable costs)
- A blogger setting a cost for a campaign will have to account for gear, photographer costs (fixed costs). Time spent writing, time spent editing photos & work, social media campaigns for the brands etc. (variable costs)
- An online writer/ freelancer will account for time, editing, writing costs, internet costs etc.
You get the drift?
Make sure you are not going at a loss and you are paying yourself.
You get the drift?
Make sure you are not going at a loss and you are paying yourself.
3. My personal favorite pricing model.
The recipe model
The recipe model
The recipe model (I helped a client come up with something like this for their new consultancy).
We deconstructed what everything costs and client chooses a combination. eg.
a/ Blogging 30k monthly
b/ Photography 30k monthly
c/ Social Media 40k Monthly #createbrandbuild
We deconstructed what everything costs and client chooses a combination. eg.
a/ Blogging 30k monthly
b/ Photography 30k monthly
c/ Social Media 40k Monthly #createbrandbuild
4. The Perception of Price
People assume that the higher priced items are more quality.
Eg. people buy handbags for 1k and one seller sets price at 3k another 7k. We assume the 7k one is quality.
Have that in mind when pricing. #createbrandbuild
People assume that the higher priced items are more quality.
Eg. people buy handbags for 1k and one seller sets price at 3k another 7k. We assume the 7k one is quality.
Have that in mind when pricing. #createbrandbuild
5. Target Market
Who is your target market?
Luxury markets charge more expensive while someone targeting lower/ middle class will charge less.
Know who you are targeting and set price accordingly. #createbrandbuild
Who is your target market?
Luxury markets charge more expensive while someone targeting lower/ middle class will charge less.
Know who you are targeting and set price accordingly. #createbrandbuild
6. High Prices or High Volumes
Do you want to move more volumes (low prices) or less volumes (high prices)? Eg. I may aim to sell 100 branding consultations so I have to lower price. Or I may aim to sell 3 premium consultations so I raise price. #createbrandbuild
Do you want to move more volumes (low prices) or less volumes (high prices)? Eg. I may aim to sell 100 branding consultations so I have to lower price. Or I may aim to sell 3 premium consultations so I raise price. #createbrandbuild
7. Bonus Tip: Adjust as you go (and grow).
I am sure you have seen those Instagram shops that tell you "dm for price" so that they adjust.
When pricing a service, you cannot charge a multinational the same price as a small enterprise. Learn as much as you can about your client.
I am sure you have seen those Instagram shops that tell you "dm for price" so that they adjust.
When pricing a service, you cannot charge a multinational the same price as a small enterprise. Learn as much as you can about your client.
In conclusion, there is no concrete formula on what you need to charge.
Have the facts above in mind before you set a price. Charge what you are worth and add tax. Do your research to ensure you are not over or undercharging.
Also watch my video
Have the facts above in mind before you set a price. Charge what you are worth and add tax. Do your research to ensure you are not over or undercharging.
Also watch my video
And subscribe here
