Price isn’t the only factor to win projects but it is still an important factor. As a freelancer, if you don’t put the right price, chances are you will either be underpaid or not have enough projects.
If you don’t price the proposal right, chances are you will either be underpaid than what you are worth or not win the project at all.
Pricing is an important factor in the freelancing and outsourcing industry. This has made many freelancers believe the price is the only factor to win a project which is totally a myth or else I wouldn’t be paid good hourly rate on Upwork.
In a proposal, if everything else remains the same, proposal with low priced will be preferred by the client. The word to focus on is “everything” and not “price”.
So here are some of the common mistakes new freelancers make when pricing their proposals.
1. Pricing Within the Client Budget
On Upwork, the client budget amount that we see isn’t the maximum amount client is willing to spend for the job.
It is just a ballpark figure client is willing to spend based on their understanding of the complexity of the task.
Convince the client in the proposal if project isn’t feasible the way you want it done in their budget.
Just to win a project and deliver within client budget, don’t go for a subpar product or service. It never works.
Clients will negotiate but you also need negotiation skills.
Often clients may term the project as a pilot project for more work in the future or they may tell you they have low offers from other freelancers. These are techniques used by clients to negotiate.
2. Ignoring the Cost
If something is going to cost you lot more than what client is willing to spend, it is better to let the client decide if he is willing to pay the right price and work with you.
I will share a recent incident with a client.
He wanted me to submit his already ready app in the Android play store and iOS app store for $150.
The cost to submit the app is $99 in iOS and $25 in play store. No matter what payment option I choose, the project wasn’t feasible.
On top of that, I was certain the submission process will have hiccups and code may need bug fixes before it can be approved. Otherwise, the original developer would have done the submission to the client.
So my price was much higher and he wasn’t convinced. So was not willing to increase the budget.
Freelancers are often trapped by such clients. Either they don’t know the cost of iOS / Android marketplace submission or if they know the cost, they ignore assuming it is merely a submission.
3. Upfront Price
If you don’t understand client’s requirement as to what needs to be done, there is no point in having a price tag.
Clients prefer developers who understand what they want. If the overall requirement isn’t clear, ask relevant questions and keep the price to be added at a later stage.
Putting the price tag isn’t the most important task but it is very important to understand what client wants. Let them know you understand their requirements and can deliver within the deadline.
4. No Details of Price
Price isn’t just a number and you have to provide lot more details.
I like to provide lot more details about the price as to how and why the cost of the project is what it is.
Details about the pricing and setting the milestone can help client alter the budget as needed or even prioritize the milestones or can even omit some milestones to adhere to the budget.
5. Pricing the proposal Too low
Often freelancer likes to see the price range for proposals and set their price lower than the lowest amount.
Clients are lot smarter on freelancing sites and often they just ignore the lowballers as they know such lowballers are a mere waste of time.
6. Pricing the proposal Very High
A client often give randomly high budget to see if freelancers are willing to read and understand the requirement and quote accordingly.
If you don’t put a reasonable price, clients are willing to ignore the high-ballers as well.
7. The Choice of Niche
The choice of freelancing niche is very important. There is a limit to how much one can make per hour in a particular niche and there is no denying it.
Nobody will hire a data entry operator for $100 per hour or a Developer for $5000 per hour.
As a developer, if I increase the hourly rate by 10 times will I still get the same number of projects?
But if I change the niche to marketing, I can.
There can be a limit to price for a niche.
8. Multiple Price Points
Unnecessary details can add multiple prices in a proposal. Say the price in the proposal is $800 but within the proposal, you have mentioned
I can get this in the next 24-hours.
When you provide hours as well as the amount, the client will confirm the hourly rates. One can’t be working for more than 10 hours in a day. So if the hourly rate doesn’t match the quoted price, the chances of your proposal being accepted reduce drastically.
9. Understanding the True Worth
Often freelancers limit their thinking about what they are worth. Clients aren’t hiring freelancer only for lower price but because of their knowledge and expertise in a specific area.
If you don’t value your services, why will clients value it more?
See yourself as an asset to the client and know your true worth. If you aren’t able to see yourself as more worthy than your price, learn something new.
Further Reading …