Pricing – How To Determine Your Rates

March 29, 2008

“How much do you charge for each project?”

I put off thinking about this question for as long as possible. I figured when someone was finally interested in my work, I’d come up with some sort of rate. Then, the day comes – I reply to someone’s craigslist ad, and actually get a response back. It was a momentous occasion. I took a second to relish it, to breathe in sweet validation.

I’m given the project details, and then I’m asked to send over my rates. Rates? I have no idea how much this stuff is worth to other people. As far as I’m concerned, my pen is dipped in gold ink, but I don’t know how plausible it would be for a client to Paypal ingots. That raises another question – how do they pay me? Is it through Paypal? Or do they write me a check? Do I need to send them an invoice?

Well, one thing at a time: first, I need to determine my rates. I started by searching for other freelancers, and seeing their prices. I browsed a few sites, saw how much they charged for a page of copy, rewrites, an article, etc. I averaged their rates, then lowballed it for myself. I reasoned that I couldn’t price myself too low, since price is very often a reflection of quality. At the same time, I didn’t have as much experience as others, so it’s not fair to charge the same, either.

I sent over my rates, and even hinted at the fact they were negotiable, depending on the work. The client didn’t take:
“Thanks for getting back to me. However, even taking into consideration that you can lower your prices, we cannot afford you.”
I wrote back, told them I’d negotiate. What was their budget? I asked.
No response, and I haven’t been in contact with them since.

It’s disappointing, certainly, but there are some positive lessons to take away from this:

  • Don’t expect a start-up site to pay the same rates as an established company.
  • I’ve completed the leg work for a ball park on my rates.
  • I can lower my rates more, without sacrificing my brand image.

All in all, it was well-worth the deflated excitement I experienced when I didn’t get the job.