How much to charge? How to price your work? Is it better to charge by the hour? Is it better to charge per project? A combination of both? What do you prefer the client?
All these are basic questions to a freelancer. Of course, there are different points of view. Today I propose a very interesting. Amber Weinberg gives us a few reasons why, as professionals, we do not want to charge by the hour:
1. The hourly limit your potential
If you are very good at your job, the price limit you for hours and not do justice to your potential. Why? A very simple example: if you perform the same work as other professional in half the time, payment for hours going to make half the cost …
The only possible solution to compensate for this situation is to raise your hourly rate. But, as we shall see below, it not easy …
2. Hourly rates have a roof
People are not willing to pay an hourly rate too high. No matter how good you are at work, and efforts to convince you to do for the client: there is a roof that is very difficult to pass.
It is true that charges by project also homeless, but this is significantly higher. Consider the following:
If you tell a client your hourly rate is $ 200, are going to think you’re kidding, on the other hand, if you tell the customer to 200 euros you can resolve your problem, you seem very reasonable. In the end, you may be able to fix that problem in just one hour, but you will not be able to “sell” in any way that your hourly rate is 200 euros.
3. The two sides gain
The ideal situation for both parties is that the work is performed in the most effective: the client meets its objectives within a set price and time, and professionals can tackle a new project in the shortest possible time, allowing you to earn more money .
The fee for project assistance, precisely because the work is carried out effectively:
– The client can achieve their goals for less money than if you were paying by the hour.
– As professionals, a project budget motivates us and helps us work efficiently: the sooner we finish the project, we will have left most profitable operation, as the price remains unchanged.
In other words, if we estimated but the scope of the project, the two parties usually win.
4. Customers prefer to know the final price
Typically, the client prefers to know the final price before the price / time and the estimate of hours.
It is simply easier. And, psychologically, conveys a greater sense of security: a price for the finished project. The customer does not see a number of hours that accumulate, but a final price by end product.
In other words, you want to know that the project will cost, for example, 1000 euros, instead of listening to the following: “My fee is 30 euros an hour, and I guess it take to complete the project about 35 hours .
How do you create price for your project ?