How To Price Graphic Design Services

I desire to share a story with y'all. The story is of two designers. Both designers make roughly $half-dozen,000 per month. Both designers accept equal skills and capabilities. Both designers have a similar portfolio and quality of work. However there is one massive difference between these two designers.

1 designer is working lx+ hours per week while juggling a ton of clients. The second designer is working 20-25 hours per week, while handling just a few clients.

Both designers are like, only one works significantly more than than the other. How does this happen?

The divergence is in the pricing

I know this because those two designers are both me. The first designer was me at the showtime of my freelance career. I was handling my pricing in all the incorrect ways and working effectually the clock on many different clients to make a skilful living.

The second designer is me, just vi months later. I implemented new pricing strategies into my freelancing career and my life changed as a upshot of information technology. I was the same person, with the aforementioned skills and quality of work, notwithstanding I cutting the amount of hours I worked by a third.

My goal with this post is to share with you some of the changes I made in how I priced myself. These changes helped me earn more income in less time. If you implement these changes and so they can help you do the aforementioned.

With pricing, it's not simply about the coin. It'due south virtually quality of life. Every bit you meet in my example, I still made the same income. I but worked less hours, which gave me more fourth dimension to enjoy life, to write and create meaningful things.

You tin can use pricing to increment your income and decrease the amount you work. So the question is: how to price yourself as a freelancer? Permit's get into it!

A freelance designer

Most freelancers commencement off with an hourly rate

I started out my pricing like almost freelancers. I charged an hourly rate for the time that I worked.

A client would come to me and I would either estimate the number of hours that a project would take, or I would utilise the time tracking software inside Upwork. This would literally track my computer activity every bit I worked on the projection.

When getting started, this isn't a bad way for freelancers to toll themselves. You lot are compensated for the time that yous piece of work. If the client'due south scope creeps upward or the project takes longer than anticipated, then you lot are compensated for that additional time.

But ultimately, this method of billing is limiting. When I started pricing myself hourly I started with an hourly rate of $xxx per 60 minutes. Over time, I kept raising my rate from $30 to $fifty, $60 and higher. Nonetheless somewhere around that $60 per hour range I noticed a major shift in my mindset.

At $threescore per hr, I was beginning to offset working with college quality clients who had decent budgets. Nevertheless I was still compensated hourly. This all culminated in ane specific project that completely changed my mindset on pricing.

Clients don't care if it takes you 20 minutes or 20 hours to consummate the project. Clients care that the work is done and it is done well.

An example of hourly pricing at its worst

A customer came to me via Upwork at my $60 per hr rate. I was happy as it looked like a great client. He provided all the assets, the scope of work, the site map and the content upfront. He gave everything to me and then I plugged it into a new website design. I finished the website in 3 hours…

And worst of all, the website looked freaking good.

I had just created a high quality website for this individual, and I had merely been paid $180 for it. The client was ecstatic and happy that I had finished then rapidly, and we both parted ways after the project.

That was a tipping point in my mind where I realized something was wrong. I knew the site that I just created for that client was worth far more coin. I knew people were charging thousands of dollars for sites of equal telescopic. I knew I had to alter my pricing.

A freelancer paid a good amount

Why projection-based pricing is ameliorate

After the 3-hour web design project, I realized that I was doing myself a serious injustice by billing hourly. I was getting good at my arts and crafts and I was working fast. If I could start charging based on the project , and not the time I worked then I had a huge potential to earn more income in less time. And that is the cute thing about project-based fees.

When you charge based on the project, you lot are tying the price of the project to the client's end outcome. The end result is all that the client cares about.

Just 30 days after my incident with the 3-hour web design projection I came across another client. This client wasn't through Upwork and had no preconceived notion of my pricing.

They needed a website for their business, and I was happy to provide them with an estimate. This fourth dimension I quoted the project based on a predefined scope of the work included. I emphasized the end result of the projection, and non the amount of time that I worked.

I ended up selling the project for $4,250. The website took me roughly 5 hours to build. And this is the thing: the client walked away happy. They loved their new website.

Shifting the focus of my freelancing away from the time I worked and toward the value I delivered changed everything. Information technology completely changed my income potential and how much I made.

It was at this indicate onward that I realized that this was the proper manner to go. I began pricing everything on project-based fees. Project-based fees helped increase my income while working far less time. But the bigger question is: How do you come with a cost point for these projects?

A savvy freelancer paid by project

Determining how much to accuse

While moving toward project-based fees sounds beneficial, in that location is withal the question of how much y'all should accuse for a project.

This is a challenging affair that many creatives mess up early. Often creatives set their project-based fees on a few misaligned criteria.

Mistake #i

To set project-based fees, many creatives estimate the time that they will spend. They look at the telescopic of a projection, gauge the number of hours, and then multiply the hours past their hourly rate. They add a few extra hours for buffer and transport over a quote.

This is the incorrect way to get. If you are going to practise this and so yous might as well just bill the client hourly. Utilizing this method puts more than risk on your end if the scope of the projection begins to creep up.

While you lot never desire to bid a project lower than the time it would accept you, charging based on a time estimate is the incorrect way to go.

Mistake #2

Another problem is that many creatives base their pricing off of what other people charge. They know that this person charges this much for a project, so they charge accordingly and match their rates to the market price.

Neither of these methods of pricing practice anything to help yous make more money in the long run. Both methods of pricing keep you stuck in the same grind of low pay for a lot of work.

Then, how much should you charge?

How practice you come up with a price point that the client volition buy and will increase your income? The truth is much simpler than you retrieve.

It comes down to ane simple method to figure out how to price yourself as a freelancer.

Freelancer deciding how much to charge

The solution: Make it up!

Yeah – brand it up! Brand upward your pricing for every client. In that location is no formula, no rules, and no perfect way to exercise it. Instead, your pricing is made up based on a scattering of criteria that I volition explain in a moment.

While there are some criteria to consider, it is important that you understand that there is no formula and are no rules to pricing.

Criteria #one – Practise I like this client?

This seems like a ridiculous manner to base of operations your pricing but it is one of the most important criteria.

When a client comes along, you are letting that person into your life. You are going to be collaborating with and helping them for the side by side few months if non years of your life. Thus, how much you lot like a client is extremely of import.

If a corporate client comes along, they may have a big upkeep for the project that does not look creatively stimulating.

On the flipside, sometimes an artistic client comes along. Maybe they are a musician or a visual artist. The assets and vision for their project are creative, yet their budget isn't that large. Often I may accept these projects on a lower charge per unit for the creative enjoyment that comes from them.

Other times, information technology comes downwardly to the personality of the client. Sometimes clients tin exist picky or have a strong attention to detail. While these aren't bad traits in clients, they are worth noting if you lot get these vibes from them early. If it is the kind of client that is going to be tweaking every picayune thing, then you need to base your pricing with that in mind.

The simple question of, "Do I like this client?", goes a long style in determining a price point for the projection.

Criteria #2 – How much do I expect this client to exist willing to pay?

This one gets a chip tricky on the upstanding side, but information technology is the most of import criteria of all. For example, let's say that two prospects come to you with similar needs for a project.

The kickoff prospect is Startup Sam. Sam has a cool concern, a creative idea for his projection and seems enjoyable and easy to work with. You talk over the scope of Startup Sam's project and he has a $iii,000 upkeep. Later on looking at the telescopic and upkeep, you decide that y'all would exist happy to take this project on for $3,000.

The second prospect is Corporate Tom. Tom has a large established business. He has a great thought of what he is looking for and seems enjoyable and easy to work with. You discuss the scope of Corporate Tom's project and he has a $7,000 budget. Both clients have similar scopes of piece of work, yet both have different budgets in heed.

Ethically, you would think that if you lot are going to charge Startup Sam $3,000 for a projection, then you should charge Corporate Tom the aforementioned amount for the project. This seems like the right manner to handle things, only this may really injure you.

If you arroyo Corporate Tom and say, "I know y'all have a $vii,000 budget, but I can do this project for $3,000", then you are undermining the value of our piece of work. When you underbid the client's pricing expectations, you are sending signals to the client that say "I'm non that good", or, "My work isn't loftier plenty quality."

Charging based on the scope of the projection seems ethical and like a correct idea. In reality, charging in line with the expectations of the client's budget is a safer manner to go.

If you can align your pricing with their expected spending then yous volition ameliorate your income and your chances to win the project.

How to figure out the client'southward budget

At that place are two simple ways that I recommend figuring out the customer's budget.

1) When the client first inquires nigh the project, I ever enquire a series of questions.

Ane of the questions I always ask is, "Exercise you have a budget set aside for this project and is it over X?" This first weeds out low budget clients, and often clients will respond and allow you know the budget that they accept available.

Just asking for the budget goes a long mode. The customer won't e'er reveal this only if you don't enquire you will never know.

2) The ballpark question – Often clients volition ask you lot for a ballpark quote for the project. Whenever I go this question I answer with a wide spectrum.

I say something like, "It could price anywhere from $1,000-$8,000 depending on the scope. Did you lot accept a upkeep in mind that you were looking to spend?"

A freelancer talking to a client

Criteria #3 – How much value am I providing this client?

The 3rd and terminal criteria to figure out how to price yourself equally a freelancer is how much value you are providing the client. Many blogs and books refer to this as "value-based pricing" and it has become quite the popular buzz word in the freelancing manufacture.

With value-based pricing, the idea is that you lot anchor your price point against the value that yous are providing to the client. Sometimes you can quantify this value in specific numbers. Other times the benefits may be intangible.

If you tin can emphasize the value that you provide to the customer in your proposal process, and then you will begin to see your income grow as a consequence of it.

For case: Yous are doing a website design or branding project for a client, then yous are providing them significant value. You are helping them amend their online presence and y'all are improving their brand perception. This volition aid them drive more sales and increase the income of their business.

If you can emphasize the value that you provide to the customer in your proposal process, and so you will begin to run into your income grow as a upshot of information technology.

Another example: Let's say you are working with a customer on a product launch. Maybe yous are writing the sales copy for their website, maybe you lot are designing the comprehend for their book. You are providing value to them that they will earn dorsum when they launch the product and make sales. Focus on the fact that your service is going to aid them make more money and anchor your price against that value.

The groovy thing almost value-based pricing is that it doesn't take time into account. If yous tin can make a alter to someone's concern in an 60 minutes and it provides meaning value to them, then you tin can be paid a large amount for information technology.

Recently, I had a customer arroyo me for a uncomplicated fix to the home folio of their website. They needed to implement a feature that would completely change the landing folio for their website. They were an online business organization, then their homepage was a huge deal for them.

They had no idea how to make the change, merely in about 20 minutes I was able to set up the problem. I charged them $500 for the change and they were happy to pay it considering information technology was of huge value to them and they could non do information technology on their own.

There is no formula

As y'all tin can see, these three criteria offer no formula or perfect way to calculate how to price yourself as a freelancer. Instead, they are intangible metrics to base your pricing on.

When figuring out pricing look at these metrics and consider them, but always recall that with pricing, there are no rules.

At that place is goose egg unethical or wrong about charging 1 client more than the side by side. Try to remember that the client always has the determination to hire you. Just because you nowadays a price doesn't mean that they have to accept information technology. With pricing, the worst that can happen is the client says no.

Experiment a flake, endeavor things out and get-go charging more. You will be amazed at the results.

And finally: Don't forget to upskill

We hope this has given you some guidance on how to price yourself equally a freelancer! Every bit is the case with any skilled professional nowadays, your ain continuous professional evolution should be intricately woven into your DNA in order to grow your prices. Just as remote working opportunities have proliferated since the advent of the world wide web, so have remote learning opportunities. And there'south always more to learn, whether that's adding UX design to your skillset as a UI designer or being one step ahead of the oversupply by learning voice design, maintaining and increasing your value on the open market place is, at to the lowest degree in part, contingent on your capacity to steadily deepen your cognition and raise your abilities. Get in contact with us today to detect out how CareerFoundry can help.

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