Mobile freelancer invoicing app – Albert – share their secrets to calculating the cost of your services.
We all know how tough it can be to figure out how to price your service. Price yourself too low – the hours become longer and harder; price yourself too high – you risk putting off potential clients before they’ve even seen what you can do.
If only there were a simple formula to could follow in order to price yourself just right to win the job and make a decent income. Well, there’s no magic spreadsheet, but here are a few simple tips to keep in mind when working out what you’re worth.
1) Figure Out Your Overheads
Pricing a service is always trickier than pricing a product. With products you can easily pinpoint the costs involved, whereas it’s much more subjective totting up the amount of hours or expertise needed for a particular job.
You can however, work out some of that value by figuring out what your operational expenses are, and then basing your estimated price on that coupled with your target profit.
So, here are some ideas on how to start crunching those numbers!
You need to be aware of the amount competitors charge for a similar service – though never blindly follow this without first ensuring you are covering your own costs! Find everything you need here:
In the service industry, competing on price isn’t as common as it is in other sectors. Instead, price on what sets you apart, like the quality and value of the service you’re providing. You want to establish long-term relationships with clients that value you – not ones that are simply looking to save a couple of quid.
3) Establish a Pricing Model/System
Establish which pricing model suits you and the work you deliver:
The bottom line is that everyone finds their own way of figuring out their pricing structure, though it’s important for everyone to know the basics before setting out to tailor their own terms. Just don’t forget, at the end of the day, providing a service even costs you money – nothing should come for free!
Albert is the free and simple mobile invoicing app for freelancers.