started a business (freelance), need advice

[aracaris]

So, I got my business license just recently, and I'm doing web design, but I'm also getting people wanting me to do photo editing, and some actual photography for them as well. Problem is, I've figured out my prices for certain things, but this is the first time I've had demand for photo editing or photography, and I haven't figured out pricing for that. So....I've tended to hunt around and try to figure out what the industry standard is for things, and then price lower since I figure it's only fair, as I'm new to the game. But figuring out the "standard" can be difficult I'm finding, as for things like web design there just doesn't seem to be much of a true standard.
But what really is the best way to figure out pricing? Are there any really good resources to help figure this sort of thing out? Anyone here run a business as a freelancer? How did you figure out your pricing?

 

[Da Blob]

There is this,
http://www.getafreelancer.com/

but i have been disappointed thus far in this site. It seems as though there are a lot of impoverished talented people in the world who are willing to work for pennies on the dollar of what I would have to charge to make it a profitable use of my time. However, it is a job market.

The challenge is to determine (ahead of time) just how much is your time actually worth (?) - both to your Self and others and then base your prices on that.

We usually charge @ $10 dollars for reworking a pix and a lot more if we actually have to go somewhere to take a pix. There is driving time and transportation costs involved in that...

If you check out the writing resources thread i believe there are some other "freelance" sites listed there


BTW - you can actually 'outsource' some of your work via freelancer,
I believe that some of the more successful people on the site are doing that. They contract to do more work than they can do personally and then farm out the extra work to freelancers taking a percentage off the top for their own profit... It is a good business model...

 

[Reverse Transcriptase]

So.... I dabbled in a tiny bit of freelance related stuff, but I have no real experience.

I do, however, have a minor in Entrepreneurship, and my father is a PhD in economics.

So yeah, you were doing the right thing of trying to find other people around to compare prices to. But you don't *have* to have justification behind your pricing. You could just throw out a number to your clients. If they don't like it, give them a discount. They might not have a good idea of what the pricing should be either, and if they don't like it you can always welcome them to tell you about a comparable service, and say you'll give them a 10% discount off what someone else is charging.

Both of those are kind of demand-based strategies for figuring out a price. The other option is supply-based!

• What materials do you need to do a project? (Write it down.)
• How many hours do you expect to work on the project?
• For your web design projects, what does your hourly work out to be? (There will be some administrative/organization time where you're not working on a project, but think about a recent web design project: How much were you paid, and how many hours were you working strictly on that project?)

I'm not sure how similar the web design & photo-editing skills are, since how much you can charge per hour is based on how much time, energy and intelligence it takes to learn each skill.

But yeah. Food for thought.

And you're an entrepreneurship. You'll make mistakes. They're not the end of the world. Heck, facebook's motto is "move fast and break things"- which is evidenced by how often their userbase & privacy-advocates get mad at them.

 

[Ghost1986]

my father looks at how long the job will take, how hard it will be and then what resources he needs. he then gives the price and hes done. but that's for landscaping.


good luck!

 

[Beat Mango]

I'm starting a business soon too Good luck in yours, maybe you should just experiment with pricing? Although I don't think you should go low because "ït's only fair, I'm new to the game" - why cheapen your product? It shows a lack of confidence in your product, in my opinion. I used to do that with guitar teaching and learned from my error.

 

[Da Blob]

Yes, whatever rates you set, let it be known that those rates are 'Introductory Rates". It is a common business practice, useful for generating initial business and references from satisfied customers. It could be helpful to ask for such references, such documentation of well-done work for a satisfied customer can generate more business. Especially from those who are hesitant to employ a "Newbie"...

 

[Beat Mango]

Oh well that's the opposite advice of what I just said lol. Ignore what I said I'm a noob.

 

[aracaris]

I'm starting a business soon too Good luck in yours, maybe you should just experiment with pricing? Although I don't think you should go low because "ït's only fair, I'm new to the game" - why cheapen your product? It shows a lack of confidence in your product, in my opinion. I used to do that with guitar teaching and learned from my error.

I have to disagree on this account, in almost every industry a person whom has had years of on the job experience is going to earn more than someone whom has just started, in fact I can't think of anywhere that this isn't the case (aside from some really dead-end jobs where you're pretty much stuck at one wage), all though yes starting rates will vary some depending on a person's skill, and prior training. With most jobs you're going to start at a certain rate, and your colleagues whom have been there longer will probably have earned raises, and will be making more, this is really no different, except that it will be a little more tricky because I"ll be giving myself raises, and have to figure out when I should.
It's not lack of confidence that's at issue, it's that I'm aware of my limitations, and I'm comfortable with them, and accept that they are something that should be taken into consideration when I determine my prices.
Plus at this point it will give me a competitive edge when it comes to attracting customers, especially the smaller businesses that might not be able to otherwise afford a website/photo editing, etc.
As Da Blob mentioned there will be people whom will be hesitant to hire a newbie as well, so my own view of my work isn't the only thing at issue, there is a common positive bias towards those with more experience to overcome.

Anyways I have some food for thought now, and will check out the resources people have posted.