Estimated reading time: 7 mins
The dream of quitting your 9-5 job and becoming a freelance worker is one which many of us have, and it is one which we often strive for in our careers. If you ever do take that leap and work as a contractor, one of the first things you will notice in your life is that you need to price your labour for yourself. The idea of putting a value on your own work can be difficult and if you have never done it before you will have no idea what to charge, which is why you should read this list.
- Don’t sell yourself short
The most important tip you need to take from our list today is the fact that you can’t sell yourself short. It is always better for you to take the middle ground don prices if you are unsure and you can change these as you go. Get an estimating system for UK contractors to get a price range in mind for your work and take the middle ground. You will be able to make a profit and also show your customers that your prices aren’t too far fetched.
- When shall you be paid?
When you are pricing your work and quoting it to your customer, you need to think about when the money should be due. Although you could let them pay after the work has even completed, this isn’t the best option for you. You need to ask for a deposit of some kind before the work begins to guarantee some cash right away, and then you can ask for the ready afterwards. This keeps you in the money and also ensures to the customer that the job will be done as soon as possible.
- Quick payments
As you work in the freelance industry you will start to notice a pattern with certain customers. Some will pay you right away, and some will take their time to pay you. If you want to make sure you earn a good wage for yourself, focus your efforts on prompt payers and this will ensure that you always have money coming into your account. There is always a risk with slow payers so they should never be a priority for you.
4. Have confidence
The most crucial skill you need to possess as a contract worker is confidence. You are working for yourself now and this means you don’t have a co-worker or a boss to hide behind. You are your brand and this means that you need to market yourself as a confident and put together person who knows what they are doing. Act confident and no one will question you, and you will likely be able to charge more for your services because people will immediately have more trust in you and your abilities.
- What will people pay?
The main question we need to ask ourselves when we are deciding on a price for our services is how much clients will actually pay for it. If you are charging £100 more than everyone else you are never going to get a sale because no one wants to pay more than they have to. Consider your costs but also think about what people would be willing to pay for a service that you provide.
- Be precise
You need to be precise when you give a quote to your clients because this looks much more professional and people are less likely to try and haggle if you give them a specific price. For example, if you would normally round your figures to the nearest ten, stop doing it. You are better off having a number like £156 than £160. It just looks more thought out and therefore people don’t want to question it.
- There’s no right answer
One of the things which can stop us in our tracks when we are working on prices is the worry that our prices just won’t be right. The things you need to remember is that every single company and person has a different idea of what is right when it comes to pricing, and there is no definitive answer. You can go with your gut instinct and go with what feels right for you. Don’t let other people influence your decision too much.
- Ask for a budget
The budget is an incredibly crucial thing to think about when you are doing work for a client. The simple fact is that you won’t always get people who can afford the whole works. Sometimes, people are a little bit limited for cash and this can impact who they decide to work with. If you have some leeway with your jobs, you can ask them what their budget is and come up with a package which will suit both them and you. You will likely leave out certain features however you can still provide them with a good service for their money.
Haggling doesn’t just work in the client’s favour, it can work for you as well. If for example a client offers you money for a job and it is way below your regular price, you are able to reject this and ask for more money. This is your business at the end of the day so you need to make sure that you are getting enough money to support yourself. It is something which you are entitled to do and it will ensure that you both reach a happy medium and you get the money you deserve.
- Charge for extras
When you are completing a for a client, every client will be slightly different and they will have their own needs. If you want to be successful in your business you need to create a pricing sheet which details what you will charge for any additional work or extras they want. You can’t give away extras for free because it is taking up more of your time and your effort. Make sure you charge a fee which is suited to the gravity of the work which needs to be done.
- No discounts
Even though you might think it’s a great idea to offer discounts for your work, you will be losing out on a lot of money and this can make your life really difficult when running a business. Think about how much it costs you every time you work and think about whether it is really worth your time and effort to offer the discounts.
For a good guide for your customers and for yourself, you can offer different packages for different levels of work. You can think about the way that you work and create a few different packages which will suit every client you have. It will give them the option to go for a basic package, a mid-weight package and a deluxe one. It will allow them to work to their budget and also makes sure that you get all of the money that you deserve
- Highlight the value deal
When you give multiple options to your clients with work, you can highlight one of the packages to show that this is the one which you recommend and which is the best value. Most of the time, this will be your midweight option and you can benefit highly from advertising this one to your clients. It makes sure that fewer people choose the basic package and therefore will be more likely to pay you more.
- Don’t be afraid to compare
When you offer your work to your customers, they will likely only be looking at your website and what you can offer at that time. However, most of the time people want out browse a few different companies during their search before they commit to one person. You can stop them from finding cheaper companies right away by offering some comparison prices on your website underneath your packages. Show how great your work is for the money and this will hopefully stop your customers from trying to find cheaper quotes elsewhere.
A great way to get yourself out there and into the public eye can also be to join a comparison site such as moneysupermarket. This will allow you to be exposed to more people online who may not have found your website on their own, and this can also help you to be chosen over other companies in the same industry. The great thing about being on a comparison site is that you will also rank higher on Search Engines and you will be rated by users which gives any new customers trust that you do a great job.
When pricing for your work you need to remember that you are running a business and you need to support yourself and your business functions with the profits you make. Think about yourself and make sure that you never sell yourself too short at low prices. You will find a price which suits you and this will bring you to new heights with your business.