You’re speaking with a potential new freelance client when they ask the dreaded question, “So, how much do you charge?“
You need the project and you need it now – how else are you going to be your bill?
So, you do what so many other freelancers have done before you: you charge a bargain-basement price.
It appears to be a sound strategy, doesn’t it? With such a cheap rate, the client cannot use financial restraints as an excuse. Plus, how could they possibly pass on such a fantastic opportunity?
Believe me, you’re not alone in believing that pricing oneself low is a win-win situation. But here’s the truth: undervaluing your work and discounting your own prices will eventually backfire.
Here are some of the reasons why charging higher freelance rates can pay off:
You’ll state your worth right off the bat
Can I be completely honest with you? When I’m shopping for something, whether it’s a shirt or a dozen eggs, I never go for the lowest choice. Why? I enjoy a good bargain just as much as the next person. But there’s a little voice in the back of my head telling me that the more expensive stuff must be superior.
There’s some serious psychology at work here. Consider this: making something of great quality requires more time. More time equals more money; therefore, the more costly products must be better. Makes sense?
Of course, this isn’t always true. When it comes to your freelance rates, however, setting excessively low rates can have the opposite effect. That low price tag may cause the client to question how good you’re at what you do.
Yes, clients care about price (they do have budgets, after all!). However, the quality of your freelance work is more important. Set a rate that reflects the excellent work you provide.
You’ll encourage mutual respect
Please don’t believe I’m writing this from a high vantage point. I’ve been there, believe me. I’ve played the numbers card and set rates that were significantly lower than what I believed I deserved.
In my experience, (apart from being annoyed by my self-imposed, meager wages), the client never considered me a capable partner in that project. They’d make unreasonable expectations while completely disregarding my needs or input.
And who could blame them? I didn’t earn their respect by charging reasonable freelance rates in the first place. So, of course, I was going to be treated like an unpaid intern who was there to do the dirty labor, rather than an accomplished and qualified professional with important skills and expertise to contribute.
You’ll attract higher-quality clients (aka Value Buyers)
As a freelancer, you understand the importance of client referrals in expanding your client base. But here’s something to keep in mind: birds of a feather fly together. That means your freelance clients will refer like-minded clients.
With such low rates, you may find a regular stream of prospective prospects coming your way, but they’ll all be folks seeking a good deal. They’re less concerned with finding someone who can knock things out of the park and more concerned with obtaining the cheapest job possible.
What does this mean for you?
Instead of taking on challenging tasks at increasingly competitive freelance rates, you’ll be trapped in a cycle of continually working for far less than you’re worth. Ask for what you’re worth right away, so you can build a strong foundation for your freelance business.
I completely understand (and, sadly, relate to) the desire to quote ridiculously low rates. While it may look like a sound plan for bringing in additional work, it almost always impedes rather than helps your freelance business. So, fight the urge to continually lowering your freelance rates and instead quote ones that are reasonable for you. It’ll benefit both you and your clients in the long run.
