Why I Believe in Pricing Work Based on Value
For freelancers, the question of how to price your services is always up for debate. Should you charge by the hour or per project? What should your hourly rate be? What type of payment terms should you require? The answers to these questions will vary based on your industry, your reputation, and your personal preferences for your business. But there is one thing that I believe should factor into every pricing decision you make:
Price your services based on value.
More specifically, base your prices on how valuable your services are to your client. Not how easy or difficult it is for you to perform those services. Sure, time and overall project scope will likely play a role in how your determine your price quote, but before sending off that proposal, take a step back and assess the value from your client’s perspective. Is what you’re delivering worth more to them than it is to you?
Pricing Your Work Based on Time
As you progress in your freelancing career, you inevitably become better and better at what you do. This usually means you get faster and more productive. For me, I can design and code a WordPress theme in half the time it took me to do so one year ago. My skills have become sharpened over time. I’m more experienced using my tools so I know how to get the most out of them.
Does the fact that I work much faster now mean that I should charge less for what I do? No. If anything, I should be charging more (I’m able to meet tighter deadlines than I was before).
