How to Figure Out Your Freelance Prices
It’s easy to feel overwhelmed and uncertain about what you should charge for your services. But don’t worry, I’ve been there too!
When I started my design business, I had no idea what to charge. I remember spending hours upon hours researching prices online and asking other designers for advice. But the truth is, every designer has their own unique pricing system that works for them. You need to figure out what works best for you and your business.
In this post, I'll share some tips on how to price your design services, based on my experience working with clients as a freelance designer.
Tip #1 Do your research
Don't skip this crucial step! Before you start thinking about pricing your design services, take the time to do some research.
You want to charge what you're worth, but you also need to be competitive in the market. Before you can even think about pricing your services, it's important to do your research. This means taking a look at what other designers in your niche are charging, as well as what types of services they offer.
Researching and analyzing the market can provide valuable insights into what potential clients are willing to pay for your services. Keep in mind that pricing is not a one-size-fits-all approach, so it's essential to find the right balance between charging what you're worth and staying competitive in the industry.
Tip #2 - Determine your hourly rate
The first step in setting your prices is determining your hourly rate. This is the base rate that you will charge for all of your services. To determine your hourly rate, you need to consider a few factors:
Your experience level (this includes your skills and expertise)
Your location
Your niche or industry
For example, if you’re a brand designer with 5 years of experience and you live in a major city, you could charge anywhere from $75 to $150 per hour. However, if you’re just starting out, you may want to charge a lower rate until you build up your portfolio and gain more experience.
Tip #3: Set packages
After doing my research, I decided to focus on brand packages as the foundation of my design business. Setting packages allowed me to have a set of standard offerings as a base for all of my clients, while still customizing each package depending on the specific deliverables needed.
To start, consider breaking down your services into different tiers or levels of complexity. This can include lower-priced packages that offer basic design services, as well as higher-priced packages that include more advanced deliverables or additional services such as marketing or social media management.
Be sure to clearly outline what each package includes, as well as any limitations or add-ons that may incur extra costs!
Having set packages also meant fixed prices for my clients! Rather than hourly, this allowed them to know the final price out the door of what they were getting.
Tip #4: Consider your overhead
Don’t forget your overhead costs. This includes things like software subscriptions, equipment, office space, and other expenses that are necessary for running your design business.
While it can be tempting to just focus on your hourly rate or project fee, it's important to factor in these other costs so that you can set a price that will actually allow you to make a profit.
When I was starting out, I made the mistake of charging too little for my services. I thought that if I offered lower prices, I would attract more clients and build up my portfolio. I later realized that I should include things like software and hardware costs, marketing expenses, and any other overhead costs associated with running my business.
Tip #5: Review your pricing regularly and make adjustments as needed
As your skills and experience grow, you may need to increase your prices to reflect your expertise and the value you are providing to your clients. Alternatively, if you are not attracting enough clients or are experiencing difficulty closing sales, you may need to lower your prices or adjust your pricing strategy.
Regularly reviewing and adjusting your pricing can help you stay competitive in the market and ensure that you are charging a fair and sustainable rate for your services. It's also important to communicate any changes in your pricing to your existing clients and be transparent about your pricing structure to new clients. This can help you build trust and maintain positive relationships with your clients over time.
If I have a price increase, I state in my contract that I need to give my clients at least 30 days' notice before the price increases. Sometimes, I give them even longer notice so that they can adjust accordingly.
Tip #6 Be confident in your pricing
One of the biggest challenges I faced when starting out as a freelance designer was feeling confident in my pricing. I was constantly second-guessing myself and worrying that I was charging too much or too little.
It's important to remember that you're providing a valuable service to your clients, and you should be confident in the value that you're delivering. Don't be afraid to ask for what you're worth, and don't let potential clients try to negotiate you down to a lower price.
Of course, this doesn't mean you should be inflexible or unwilling to compromise. If a potential client is interested in working with you but is unable to afford your prices, you can always explore other options like adjusting the scope of the project or offering a payment plan.
Unlock the Secrets to Design Business Success
Have you gained some insight into how to price your design work and communicate your value to clients? Are you feeling more confident about setting rates that align with your skills and experience?
Remember, pricing is just one aspect of running a successful design business. If you want to take your career to the next level, you’ll also need to focus on branding, client processes, and time management.
I’m here to let you know that there’s a way to overcome business challenges. That’s why I’m sharing my proven knowledge with you, so you can start booking higher-paying clients, and free up more time for yourself.
Are you ready to take your design business to the next level?
I've been working hard on a blueprint program to help you perfect your brand, solidify your client process, and book higher-paying clients. This program will teach you how to live your life to the fullest without having to struggle with your design business.
If you're serious about making a change and want to learn from my experience, I highly encourage you to watch the masterclass.
Don't miss out on this opportunity to transform your design business and your life. Watch the masterclass today and take the first step toward your dream design career.
