Regularly, I find myself in a discussion with those who sell their time and expertise rather than a physical product, talking about price.
How do you set it?
After 25 years of doing it for myself, you might think I have some tips?
Well, I have plenty of experience and some scars, but it remains a really tough question. It is especially tough when there is not much work around.
There are only two driving considerations:
- How long the project will take me.
- What is the value of the project to you.
These two factors combined with my standard rate will define a quote.
Generally my quotes are fixed, if I make an error in scoping in my favour, OK, if the error is in your favour, good luck to you.
I will not haggle, either the knowledge and experience I have is of value to you, or it is not.
However, there are a few mitigating factors that can influence the price.
- Project scope. I am an expert in specific areas, not all. Often there is the opportunity for you to use others who may generate a better outcome more quickly. In that case, I will recommend a couple of people to you, people that I would trust were I in your shoes. In that case I will not clip the ticket in any way, unless you need me to project manage the ‘subbie’. This may reduce my price, as it no longer consumes my time.
- Â Timing. As I work on projects, there are times when I am up to the gills, and others when there is plenty left over. If your project is flexible in its timing, and I can get to it in those slower times, perhaps we can agree on some price flexibility as well. However, that is unusual, as what seems to be a ‘dry patch’ has the habit of suddenly turning into a downpour.
- For some reason, the project we are discussing is more than just interesting to me, as those are the only ones I take, but compelling, addictive in its potential to make a difference. Again, rare.
I am a stand alone freelancer, an expert in a narrow but very deep field, trading my time, experience and knowledge for money. I know a lot about a wide range of other things, but do not claim expertise of any great depth. Generally, I do not do projects that require those skills, except as a catalyst and enabler of the areas of deep expertise.
The focus should be on the value that will be delivered, not the price.
Maybe that helps you to think about your own pricing strategy.
Agreed – although there are variations on what a freelancers offerings are, and I have always focused the client on the ROI of their investment. This has allowed me to work with a set investment, which has not been challenged in more than a decade. I should point out that mostly I am working with clients who I have worked with for some years, or new client recommended by previous clients.
Colin,
You are right, to my mind, the ROI is a part of the ‘Value’ but implies a quantitative calculation is possible, when often such a calculation is more speculation. It can be constructed, but not without a lot of long bows.
I read your services as being more sales training, where there is often an immediate return, when the Reps numbers go up. My focus is on fuzzier things like strategy, and ‘marketing; which are harder to calculate.
However, if you have then answer, let me into the secret, as i struggle!!