You should ask 10 Important Questions to Yourself
Before coming up with a final price, there are quite a few
questions that you need to ask yourself first. These questions would allow you
to come up with the most reasonable price possible for each service that you
render.
1. What services are covered with the
project?
2. What are my overhead expenses?
3. How much money do I want to make in the end?
4. What is everybody else charging?
5. How badly do they need my services?
6. Am I an expert in the nature of the project
they’re asking me to do?
7. How extensive is my experience?
8. Will I charge hourly, or will I charge a flat
rate?
9. How much is the client’s budget?
10. What is my business strategy?
Once you have answered these questions, it would be a whole
lot easier to figure out whether the price you are asking is reasonable and
fair both to you and the client. Remember that you want to charge a reasonable
rate while still staying competitive.
Important suggestion: Make a profit
Don’t be afraid to give your client a price where you will
actually make some profit. This advice is something that beginners should never
forget. A lot of beginners think that it’s just about gaining experience for
now. They give their clients such a low price because they feel that they do
not have enough experience to demand for something that would actually give them
a little extra.
Make sure the price you ask for does not just cover the
costs. And definitely, you should never think about giving your clients a price
where you lose out, either. Give them a price that would give you a reasonable
profit to cover the effort, the sweat, and the mental energy that you drained
as you worked on that project.
Explain in detail: If you charge an hourly rate, make sure the client understands every aspect of the work
It always boils down to a question between charging a flat
rate and charging an hourly rate. A lot of designers charge an hourly rate
because this means that every minute that they are working is paid. However,
clients are often wary of this system because they feel that they might be
billed higher than necessary.
This is why it is extremely important to make sure that
every client you work with has a clear picture painted in their mind the moment
you tell them that you charge by the hour. Have a clear timeline of every step
of the process. Show them the deadlines and potential problems that could cause
a few delays. And whenever a problem comes up, be open to the client about it.
This way, they know that every hour that they pay for really is worth it.
If you charge a flat rate, always set boundaries
A flat rate is always easier for clients to accept. However,
you should also set a few boundaries when you charge a flat rate. You may be
charging a low flat rate for a project so huge that you end up on the losing
end. Make sure you define the services included with a specific project because
the client might end up loading you up with a bunch of tasks, thinking that the
rate they paid for includes everything on their mind.
Make your rates clear and specific. You could tell them that
basic graphic design would cost them $700, but if they want you to handle the
entire project, there would be an additional $300 for that. Have a list like
this so that clients can easily choose the services they want and pay the flat
rate for each service. You can even package a few services together and come up
with a single rate for that to make it easier.
Ask for a token or advance payment
Some ask for 50%, while some ask for 25%. This depends on
your costs and if you have enough money to cover for them while the project is
underway. This does not only ensure that you have a working fund to support the
initial phases of the project, this also ensures that the clients stick around
the moment the project starts. This has happened over and over again, with
graphic designers working so hard on projects where the clients suddenly
disappear. They end up losing a lot of time and money that was not even covered
by the client.
You could also tell the clients that this deposit is
non-refundable. This is an even better security measure for you, in case they
suddenly decide to say that they’ve changed their mind and they want their
money back.
Always Be flexible
Just because you already have a set price list does not mean
that you cannot negotiate any longer. You also have to be flexible, otherwise,
clients could turn away and get somebody else no matter how badly they want you
to be on their team.
You could throw in an extra service in case they opted for a
really high package and are asking for a discount, or you could convince them
to get a few extra services with the promise of 10% discount.
Be competitive
What does everybody else charge for their services? Always
base your price on this. No matter how great you think you are, your potential
clients will always have a few other options up their sleeves. This means that
the moment they decide that you’re just not worth it, it will be easy for them
to invest that budget onto someone else.
If you do end up charging them a little higher than what
everyone else is asking for, always be ready to justify this. You may have more
experience over the competition, or the tools that you use may be more advanced
than what they have. You may also be able to deliver the results they need
within a smaller timeframe.
Don’t be afraid to lose clients
Some graphic designers end up saying yes to an unreasonable
offer just because they want the client to stick with them. If you believe that
it’s a budget that you cannot work with, don’t be afraid to say no. Remember
that for you to be able to deliver top results, you also need the necessary
resources to make it work.
If a client is trying to pull your price down to an unreasonable amount, just say no and walk away. If that’s how badly they need your services, then they would understand that they also have to pay the right price for it.