Pricing is not a decision it is a strategy
I used to think that pricing was hard, but in actuality pricing is a process. Once you know where you are in the process it becomes much easier to know what to charge. With that being it is best to become familiar with all of the pricing strategies so you know when to apply them.
Be Aware of How Clients View You
I often wondered why other freelancers of similar skill were making more money than I was. I finally saw my lack of position put me in the wrong segment of the market.
Target Your Audience
This is the first step into choosing pricing that is best for your business. You must decide on who you are going to target. The segment or niche you choose to focus on determines what pricing method is best.
Be Aware How People Think About Price
There is a psychology to pricing. Price to high and you will scare people off, price to low and people won’t take your series.
Hourly pricing is the most simple and straight forward method of pricing. It’s the method that most of us are used to. However, with this method you may be placing a limit on your earning potential without knowing it.
Flat Rate Pricing
This pricing strategy allows you to price per project no matter how long it takes you to complete the work. It is the pricing method I favor. This is a great strategy to use in combination with other strategies.
Anchor Your Pricing
Giving your clients a choice between multiple solutions that will solve their business problem will increase your chances of winning the project.
Value Based Pricing
This is the pricing method I am currently using in my business. Once you grasp how to evaluate the value your provide this is a powerful tool that can 3x – 10x your income.
8 Questions to Uncover Value