Strategies for setting competitive pricing as a freelancer
Just set up your freelance business? Perhaps you’re an established small business owner looking to adjust your prices in line with the climbing cost of living.
One of the perks of freelance life is the opportunity to choose what you charge. However, setting your own rates also comes with some complexities — how do you make sure you’re charging the right amount? You don’t want to undersell yourself and your services… But you also want to offer rates that will attract customers.
How do you strike the balance? Here are some helpful strategies to help you set freelance rates that appeal to potential clients without leaving you out of pocket.
Do your research
Competitor research is a great place to start when setting your freelance rates. Explore what other businesses and solopreneurs in your field are offering. If they seem way off what you originally had in mind, consider aligning your prices with the going rate.
A significant difference between employment and freelance life is tax — so make sure you account for how much you’ll need to set aside for your tax return. Apps like Mettle can help you divert a portion of your income to a tax ‘pot’, ready to withdraw when the tax return looms.
Know your outgoings
It’s also important to think about your expenses — not only your business overheads but also your lifestyle. Do you need to cover the mortgage and vet bills? Kids’ school uniforms? Ensure your prices are in line with your cost of living to help reduce stress and financial worry.
Within this, be realistic — how many billable hours can you manage each week? The last thing you want to do is overstretch yourself and risk burnout.
Tools like the Day Rate Calculator can also help you work out how much you’ll need to charge to reach your desired turnover.
Consider flexible pricing models
Of course, day rates aren’t the only way to charge. It can be helpful to offer flexible pricing models to appeal to an array of clients or customers. This could be offering both day and hourly rates, providing the option of a fixed fee for a project, or offering retainers.
Depending on your business, you may find other pricing structures most effective. Many freelance copywriters opt for a price-per-word strategy, for example.
Offer packages
You might also want to consider packages, offering a discount for multiple services or a bulk purchase. This can be a great way to attract customers who want a comprehensive solution or are looking for wholesale items. Plus, it gives you the buffer of a larger income for the month.
Review your prices
Once you’ve set your freelance rates, they don’t need to remain that way. It’s helpful to review your prices regularly — perhaps annually or when you reach the end of a contract with a particular client. In some cases, it might be time to review your fees when you hire a team member or additional freelance support, such as a virtual assistant (VA).
It can feel daunting upping the price on your website or marketing materials, but it can help you stay afloat and ensure you’re making your desired profit. It’s all about knowing your worth (and remembering to add tax!)
Streamline your freelance workload with a VA
Setting the right rates can be a big factor in any freelancer’s success. Once you nail your pricing, you can feel confident knowing that clients will get value for money and you’ll get fair pay. However, deciding your rates, creating price lists, and liaising with prospective clients all add to the ever-growing to-do list we freelancers know all too well.
If you’re looking for support in making that to-do list more manageable, why not consider hiring a virtual assistant to help with admin, organisation or digital marketing? An experienced VA like Erin can tie up any loose ends and take on the tasks you can’t manage so you have more capacity to focus on growing your business — and setting those all-important freelance rates.
Take a look at the Bizzybee services list and feel free to contact Erin for more information.
