Let's use the illustration of two designers with a good work portfolio, the same excellence in delivery, making roughly $300 per month.
But there is a vast difference between these two. The first works 60-70hours a week while the other works 20-27 hours in the same week. Yet, despite the big difference in working hours, they both have equal pay. The first works on tons and tons of clients' projects while the other deals with a few.
Now, the difference is the pricing. Most freelancers work up for so many hours attending to tons of clients and charging very little compared to the excellency of the project delivered.
It is not just about the money but about the quality of life. The second designer works fewer hours, gets the same pay, and could use the rest of the hours to do many other things that might interest him and enjoy life.
Most freelancers charge an hourly rate for a job. When given a project, they estimate the hours it will take them to finish it and then set the price. The charge could be $15 per hour, depending on how a freelancer chooses to charge. The hourly rate model of charging seems to be less beneficial to most freelancers as the charge at the end of the project tends not to be equal to its worth. You, therefore, have to charge in a way that will be beneficial to both the client and you. You wouldn't want to fix a price that would scare your prospects or clients away.
We have freelancers who charge per project. They give a fixed price of the amount they would love to be paid upon completion of the project. This method of charging works very well for them, and it's even more beneficial. You can always finish up a project and smile at the fact that your price charge was worth it and not the other way round.
Before you begin the journey of freelancing, you must figure out how you want to be paid - either hourly charge or fix a specific price for each project that comes your way. However, it is expedient to have a fixed price because the hourly rate pricing method may not be as profitable in many cases.
One of the things a freelancer has to bear in mind while charging is that customers will always want to negotiate. When you give a client your price for a project, you should also provide a chance for negotiation. A freelancer should never say no to lowering costs a little bit.. So, you should add $10 or $15 to your fixed costs to make the negotiation easier for you.
It is best to always stick to initiating price and never lower your cost because a client is backing out of a deal. There is a chance that you will land a more enormous, better opportunity.
Some clients will make you do extra work than agreed. They agree to your price initially and later ask you to do extra work for them for free. It's best to discuss charges for additional work and revision before going ahead with a client's project. It would help if you never forgot to include taxes and professional expenses in your price.
The big question now is how I go about with the amount to charge as a freelancer?
It is best to first calculate all your expenses before charging for a project. That way, you can ensure you make as much profit as possible. Your years of experience and expertise are also a criterion to look upon while fixing your price.
You can also inquire from other freelancers in your geographical location of how much they charge, as this will aid you from losing clients to other freelancers if your service cost is relatively higher. Also, the complexity of the work and how much time it will take is another significant factor to consider.