🔥 Campfire 21: How to raise your prices as a freelancer?
The past three years have been crucial for my design business. I made three significant changes that combined to create new changes.
The past three years have been crucial for my design business. I made three significant changes that combined to create new changes. To be completely honest with you, the topics I'm going to discuss are ones that I have put off for years despite knowing that I should because it is simpler that way.
If you put in the effort to even just do them, these things will significantly improve your business. However, most people overcomplicate and wait because they believe it to be too simple to be true.
So, let's break it down.
Runway money
By putting away about $100 each month, I thought I would never be able to save much money. But I discovered that it doesn't matter how much you set away. What matters is a habit of putting away.
Now I have around 18-24 months of living expenses. Even 6 or 3 months is acceptable, though. Additionally, it serves as a fallback if you run out of projects. So that when you jump on the call with a prospective client, you don't have the feeling like you HAVE to get this project.
New client, new price
When I was paid hourly, I used to charge the same amount to every client before realizing that this wouldn't be sustainable in the long run. So I quadrupled my rates and waited. It spooked me. It took a while. However, I acquired my first client at that price after two months. Since then, I'm not charging new clients at the same rate.
The next time you speak with a new client, simply double the price, keep a straight face, and remain silent until the client speaks. In case negotiations happen, it's a good idea to have a lower number in mind that is at least 50% higher than your previous offer.
When a client tries to negotiate a lower price, you respond, "This is the lowest I can go. I wouldn't do the project if it were lower than that."
The rule I've followed since then states: If the client agreed on the price right away – you've undercharged.
Project size
As I increased my prices, the projects I took on grew more significant and successful. Therefore, I rejected requests for "quick fixes," "just a few screens," and "it shouldn't take that long."
I think I once worked on six different projects in a single day at one point. Only one qualified for a portfolio. I was working on creepy projects because I was unable to refuse. Not any more. I now only take on large projects with the possibility of a multi-month or yearly retainer agreement.
Conclusion
I wouldn't be surprised if you were able to double your income if you followed these 3 tips. I don't claim it's simple. I'm saying give it a shot; it works.