Have you ever called a price for your service and just like magic, your client paid without hesitating or asking for a deduction, and now you’re feeling bad for not giving him the original price your service is worth as you’re afraid of scaring him away?
Perhaps you’ve once delivered a fantastic job for a price you were really satisfied with, and after some time, you got to see other experts in your profession charging triple times the amount you charge for the same jobs you’ve done.
And here you are, brooding, uneasy, and can’t stop thinking about how they’re setting such ridiculously high prices for small jobs without scaring the clients away.
The good news is there’s no magic to it.
Or maybe there is😀
Either way, you’re about to find out.
Whether you’re a new freelancer or have previously underpriced your work, this blog will teach you tips and steps on how to price your services without short-changing yourself or scaring clients away (all in ten minutes). Let’s go
Why is Undercharging Bad as a Freelancer?
Before solving the mystery of how to price your service, let’s stop to discuss the possible defects of pricing wrong.
Your pricing directly impacts how clients perceive your professionalism.
You don’t believe it?
It’s basic psychology😀
Think of it this way, having employed the service of a few professionals in the past for a job, now you’re employing another person for the same job role, with the same responsibilities, tasks, etc…the only difference now is this new person is charged twice as less as the other people you’ve earlier employed.
Naturally, even without meaning it, you’ll doubt the ability of this person, cause it’s so unnatural for a person to deny himself of good pay for a job well done.
So, while you’re innocently charging low to win your client over or ignorantly setting a low price for your service, you’re unknowingly signalling a red flag to them.
Take a brief minute to digest this, before we go on to discuss how to price your service and 5 simple ways to do this.
How To Price Your Service Without Selling Yourself Short.
Pricing your service doesn’t have to mean undervaluing yourself, and it doesn’t have to be a guessing game.
Your price should reflect the effort, expertise, and of course, the time you put into your work.
When you set a price that truly matches what you’re offering and your investments in it, it shows your confidence and builds trust with your clients.
So here’s how to price your service without feeling like you’re “scaring” clients away or losing out on what you deserve:
- Know Your Value
“When the value of a thing is unknown, it will be misused”
Think of all the skills, experience, and expertise you bring.
Imagine buying quality ingredients for a dish—the more premium the ingredients, the higher the cost.
The same thing applies here, clients are paying for quality when they hire you, so price accordingly.
- Check Industry Rates but Don’t Just Copy Them
Research what others in your niche charge, but use this only as a guide.
This is because those “standard” rates may not reflect your own unique skill set or the extra value you provide.
Adjust the rates based on what you bring that’s special – whether it’s faster delivery or any other broader skill set you might have included.
- Consider the Scope and Complexity of Each Job
Not all projects are the same.
If the job you’re taking requires more hours, specialized tools, or a more custom approach, your pricing should reflect that.
Breaking down the tasks will help you understand what the job truly requires and ensures that both you and the client understand what they’re getting, and what they’ll be paying.
- Don’t Be Afraid to Communicate Your Value
When you state your price for your client, don’t just throw out a number and expect them to self-process the need for such a price, explain to them what they’re getting.
Outline how your approach, experience, or skills benefit their specific needs. Clients are often more willing to pay if they understand the direct value you’re bringing to their project.
- Stand by Your Price
In the job market today, confidence is the master’s key, and it opens every door.
Once you’ve set a price that’s fair for you and realistic for the work as well, stand by it.
If a client tries to negotiate too low, consider it a sign they may not fully value the service you’re about to invest so much in.
Standing firm doesn’t just maintain your earnings; it helps build a client base that respects what you bring to the table.
5 Simple Ways to Charge for Your Work
Now that we’ve solved the mystery of how to price your service, the next step is figuring out how to actually charge your clients.
Charging considers choosing a payment method that works for you and your client. Here are five simple, practical ways to do it without complicating things:
- Hourly Rate
Charging by the hour is very straightforward: when you charge by the hour you keep track of the hours you work and bill the client based on your hourly rate.
This is very ideal for projects where the time commitment might vary.
The most important thing is to make sure you communicate to your client upfront about any expected time ranges, so your client isn’t surprised by the final bill.
- Flat Fee or Project-Based Pricing
With a flat fee, you can set one total price for the entire project, no matter how long it takes or how complex it proves to be later on.
This is perfect for projects with a clear beginning and end, that you’re sure won’t create unforeseen stress or unplanned commitment.
Clients often like this option because it’s predictable, and you can also feel confident knowing you’re paid for the full scope of the work.
- Retainer
A retainer is a regular, recurring fee clients pay to have ongoing access to your services.
This is popular in situations where a client needs consistent work—such as monthly updates or weekly tasks.
One notable benefit of a retainer is that it gives you a steady income, and clients like it because it secures your availability and commitment.
- Milestone or Payment Schedule
When you take on large projects, you can break the payment into milestones.
For example, you might ask for 25% upfront, another 25% halfway through, and the final 50% on completion.
This keeps the client invested and ensures you’re compensated as you progress, making it easier to tackle big projects without financial risk.
- Performance-Based Pricing
With this method, you’re paid based on the results you achieve.
It’s quite risky because payment depends on reaching specific outcomes, like increased website traffic or sales conversions.
It is much more risky because dubious clients might want to play you by claiming you haven’t achieved the results, even when you have.
However, some clients might appreciate this model since they only pay when they see results.
So, if you’re confident in your ability to deliver, this can be a great way to showcase your value.
Choosing the right way to charge depends on the type of work you’re undertaking, the client’s needs, and what you feel is fair.
When you pick a method that feels fair and sustainable, you’ll find it much easier to set prices with confidence—and clients will respect you for it.
When Should I Raise My Rates as a Freelancer?
Raising your price can be quite challenging, but it’s very important to keep up with your growing skills, experience, and the increasing cost of living.
One of the clearest signs it’s time to increase your rates is when your skills or expertise have improved significantly.
Maybe you’ve taken on more challenging projects and learned new techniques and skills that now allow you to deliver even better results for clients. If your work quality has increased, then your rates need to reflect that added value.
Another indicator is when you find yourself fully booked and clients are constantly knocking on your door.
This increased demand can only mean one thing; people value your service and expertise, in fact, most clients, when they realize how booked you are, may even expect that your rates will increase.
It’s also wise to increase your price if the market rates have risen for the type of work you do. It’s important that you keep tabs on what other people are charging in your field as this will help you stay competitive and help ensure you’re not underselling yourself.
Lastly, if you notice that your current price doesn’t support the goals and lifestyle you’ve set for yourself then you should consider an increase.
Since you’re sacrificing hard to deliver the best results for your client, it’s fair that you earn an income that reflects your dedication and work quality.
What Are the Best Payment Methods for Freelancers?
Before we wrap up this blog, let’s talk about one common headache most freelancers like yourself face.
And that’s the issue of choosing a payment method to get their pay for the work they’ve done.
While there are tons of payment methods available for use, you must know that not all of them are ideal for you to use.
- Should I Use Direct Bank Transfers?
Yes, you can, but not in all cases
A bank transfer is perfect if you and your client are in the same country, as local transfers come with low or zero fees, plus they are quick.
Bank transfers are simple, once you complete the job, your client makes the payment straight to your local bank account since you’re both dealing using the same currency
However, when you’re working with international clients, it’s not this simple, as cross-border bank transfers take several days to process and come with high fees. Sadly, local banks don’t offer competitive conversion rates for currency conversions, unlike other payment methods.
So, while bank transfers are great for local payments, they might not be the best method when dealing with international clients.
- Is PayPal a Reliable Option?
Yes, PayPal is a popular choice for freelancers worldwide, and it’s secure and very easy to use.
Unlike bank transfers Paypal allows you to send and receive payments across borders, making it convenient for international clients. PayPal payments are usually processed instantly, especially during business days, this also gives you quick access to your earnings.
However, there are a few things you need to consider before choosing Paypal e.g. fees and conversion rates.
Paypal charges fees for transactions and their exchange rates aren’t exactly exciting, they have strict policies and they can place your money on hold if they detect unusual activities.
This can delay access to your money even though it’s a security measure for your benefit.
- How Does Payoneer Compare to Other Methods?
Payoneer is an excellent method for freelancers, especially if you work on platforms like Upwork, Fiverr, and many others.
Unlike PayPal, Payooner charges low fees, and it’s very easy to set up and navigate.
For instance, when using Payooner on Upwork, you can easily link your account to receive payments directly.
Payoneer also offers a prepaid MasterCard, which allows you to access your funds at ATMs locally or use it to make purchases online, making it more convenient and easier to use.
Payoneer is the best choice if you want quick and flexible payment options with low fees, especially when working through freelance marketplaces.
- Can I Accept Payments Through Geegpay?
Yes, Geegpay is a great option for you especially because it offers a highly competitive conversion rate.
Unlike the aforementioned payment platforms that charge high conversion fees, Geegpay offers better conversion rates, this way you get more money when your client pays you in a different currency.
This can make a huge difference, particularly when you’re working with international clients.
For example, if you’re getting paid in USD but your local currency is different, Geegpay’s high conversion rate means you’ll gain more.
So, Geegpay is not only flexible, but it also ensures you’re getting the most out of your hard-earned cash.
- Is Cryptocurrency a Safe Payment Method?
Cryptocurrency is a safe payment method, but first, you have to understand how it works. Then, get a secure wallet.
As a digital currency that is built on the blockchain, cryptocurrency transactions are always secure, fast and borderless.
However, crypto values can be highly volatile, so the amount your client pays today could fluctuate within minutes or hours, either increasing or decreasing in value.
Additionally, not all clients may feel comfortable using crypto for payments.
In Conclusion
Pricing your services can be challenging, but remember that it’s about valuing your work in a way that makes sense for both you and your clients.
With these tips on How to Price Your Service, you’re now ready to set rates confidently.
If you’re looking for even more guidance to grow your career, join our community today.
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