Less than $75/hourI've met a whole bunch of Bizniks who are charging $75 or less for their services.
What are you, nuts?! (Trying to be a little provocative here.)
Inflation this month was +5.3% versus year ago. It's the biggest jump in 17 years! It's time to take pricing, people!
If someone can't afford you at $75/hour, they need to look for someone who didn't get this Wake Up Call.
And if you say, "but that's the going rate," then I reply, "then you're not marketing yourself correctly."
Now go out there and command what you're worth!
I charge hourly for some things and flat rates for others.
The tasks that are cut and dry are flat rates (like setting up a system or developing a blog).
Anything that's not clearly defined falls into my hourly rate category (like, "support" for a shopping cart).
In the end, it's mutually beneficial.
Lively post. Let me try to take inventory again.
I "got these right” the first time.
Some Bizniks undercharge.
"Charging more" is a good and sustainable concept. Low-priced promotions have a place. Low rates for startups building a portfolio or practice have a place.
It's easy to lose sight of your true expenses when you consider travel, admin, and miscellany.
And these points evolved, rather dramatically.
1. The “charge hourly” versus “don’t charge hourly” debate is heated. There probably isn’t a one-size-fits-all answer. 1a. Paul Spafford’s approach can work: hourly for some jobs, flat rate for others. 1b. A categorical statement like “Dumb” might make provocative copy but offended more than one person.
2. Most of us agree: A Biznik might underprice and might have self-esteem issues, it is unlikely that the two are highly correlated. (On a separate but related note, both Hsuan-Hua and I recommend Bizniks consider EQ tests.)
3. I began the string with a rather arbitrary number ($75/hour). There is no “right number” that applies to all industries. 3a. I do, however, stick by my original assertioni (which most seem to agree with): Bizniks would do well to update their assumptions about how much they can charge. It may be more than the last time you checked.
4. There may be different ways to package your services to garner higher rates. Karrie taught a course on it this past weekend. Karrie, anything to add here?
5. There may be interest in a “How to keep track of your time” seminar among Bizniks.
6. There may be interest in a “How to right-size your pricing” seminar.
Is this a fair summary? Have I captured everything?
I love Mikelann Valterra's thoughts on the issue of trying to compete based on price. She says, "do you want to be the Walmart of your industry?"
She also says that you should aim for a 20% price intolerance in your prospective clients. If everyone who looks into hiring can afford you, you're not charging enough!
(As for the hourly vs flat rate conversation, I've weighed in before, but I'll say that I continue to stand for hourly rate. I hear ya, Liz, there's some things that cannot and should not be estimated into a package deal. Can you picture a therapist who would say, well, I estimate it'll take about four months to get you healthy....?)
Rachel - Great comment! Many consumers seeking design services (and so many other services/products) are only concerned about the cost - and simply want the cheapest price they can get. Those are not my potential clients. My rates are a "qualifier" of the type of clients I end up taking on.
For most of my 30-year career I have set my rates higher than the average for the local market. In fact, each time I've raised my rates, I've had more business - rather than less - come my way. The market perception of "if it costs more it must be better" certainly works in my favor.
Back in 2003, while a member of a design industry panel at an international conference, each panel member was asked to share their business mantra. Mine: "Work less; charge more."
Nice mantra, Jeff. Thanks for adding a concrete example to support my comment.
I also charge more than the baseline for my profession, partly because I don't want clients looking for the cheapest deal and partly because I know what I offer rocks!
The only time I discount my rate for coaching is if a company buys a block of my time (at least 20 hours) and pays for it in advance. I will discount my seminar fees if a company sends multiple participants (at least 5)
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