How much do I charge as a freelancer – Price Setting Strategies

Hello Freelancers! In this article we're going to examine the most important and crucial query that plagues all Indian freelancers today. What is the appropriate fee for my services? Sure, it's a difficult one, but don't worry—we'll find the solution. We'll dispel the myths around price and provide you with advice on how to obtain your true value. Fun fact: according to a statistic from last year, there will be 48 million independent workers in India by 2025, making it the largest country in the world. Yeah, there are a lot of independent contractors out there. But, if you have the correct price strategy, you may differentiate yourself from the competition and attract customers, which will boost your revenue.

Understanding the Freelance Landscape in India

I want you to take a moment to recognize how special it is to be a freelancer in India before we go into the specifics of pricing. Think about this: the recent boom in the startup and gig economy has led to an unprecedented demand for competent experts in every industry today. However, it's also one of the professional markets with the highest level of saturation. Your clients will almost certainly value price more than quality. The majority of you can probably recall at least one or more experiences you've had with "cheap" clients. But fear not, my friends! With the right pricing strategies, you can navigate these waters like a seasoned sailor and ensure that your skills are valued and compensated accordingly.

The "Paisa Vasool" Factor

In India we say: "Paisa vasool." In English, this signifies that you are getting value for your money. Making your clients feel like they're getting their "paisa vasool" every time they pay for your services is exactly what you should be aiming for as a freelancer. Now, finding the ideal balance might be difficult. It all comes down to one thing, though: realizing your worth and convincing your clients of it as well. How can you get people to pay you what you're truly worth if they don't realize that?

The pricing strategies have two most prevalent alternatives: hourly rates and projects based packages. Both have virtues and downsides, so let’s lay it out.

The Hourly Grind

The most common rate among freelancers. It’s obvious too – you receive money for the time you’ve spent on a project, and it’s particularly useful when it’s impossible to evaluate the final time cost. On the other hand, it’s easy to screw up because you’ve lost track of hours. What could be more hilarious than a software developer on a tower of 80 hours discovering they were paid for no more than chai wallah on the roadside?

The Project Package Deal

However, the obtainable alternative for the client is to agree on project-based pricing. Inbounds clients, especially for the first collaboration, appreciate that there is a predetermined fixed cost. The best thing about it is that this estimation also implies overhead costs. It allows the service provider to assume the possible fee for their knowledge and the probability of many drafts and independent projects happening until the desired result is achieved. At the same time, the client feels that work is going according to the plan and does not react violently to most changes.

Finding the Sweet Spot

So, the million-dollar question: which should you choose? Well, my friends, the answer is in the middle – take the best of both worlds. For several projects, the hourly rate might be more appropriate. For vague scopes subject to changes, everything can be better than an accurate figure. For some, a quotation for the whole deal. And both have their pros and cons, both can be better for some occasions. The point is that you must evaluate what is the best from any project and stick with it; by the way, you can combine both! A hybrid strategy is when you charge the project fee and the additional hourly rate.

Evaluating Your Worth and Setting the Price

All right, now that we’ve gone over the various pricing strategies, let’s talk about how you can actually determine what you should charge. I mean, sure, you don’t want to sell yourself cheap, but you don’t want to price yourself out of the market, either.

Showcasing Your Skills

First and foremost, you must genuinely assess your skills, experience, and portfolio. If you are a seasoned pro with a robust client roster and a visualization portfolio that can make Picasso cry, then you can and should charge as such. That said, even if you’re just starting out, don’t sell yourself short. Make sure to emphasize your unique qualifications, any certifications you may have, and any specialized knowledge you might possess. These are all reasons why you can charge more.

Client Psychology 101

A little secret: pricing is as much psychology as it is about numbers. Clients will often link more expensive rates to better quality; therefore, if you fundamentally believe in the value you bring, do not hesitate to charge a premium. However, you do not want to scare them away. It is all about the balance and how you convey the information to the prospective clients.

Navigating Freelance Platforms

Ah, freelance platforms – the double-edged sword of access to a world client hours after; it has its dark side too. Do you know how many competing bidders are on these platforms? More importantly for your sustainability – do you understand that many of your fellow language translators are willing to settle for less?

Bidding Wars

Many freelancing platforms run on a bidding system ‚ you will lay your bidding to get closer to that desired project. But the chances are high that more people will be running after the prize which essentially means multiple undercutting chances as your colleagues might end up putting in even lower betting schemes. If you have experience, and even if you’re hoping for experience, don’t let under-competitive offers bring you down as lower prices. If your project doesn’t get accepted, it will get a few more low favorited places down the line.

The Convenience of MrSolvo

If you are after a more straightforward and less stressful experience, such platforms as MrSolvo are what you need. Apart from saving you time on crafting bids, developing proposals, and persistent editor/chef, it allows you to dedicate much more time to doing what you love – delivering quality work. On MrSolvo, clients list what they need, and you state your rate, all in advance prior to starting to work. No more hassle – just you and your client.

The Art of Negotiation

Let’s be real – pricing is usually a negotiation. Even with the most well-thought-out strategies, you may still encounter some clients who claim that your rates are too high or try to lowball you.

Knowing When to Budge

Regardless of how well-researched your industry-specific prices are, it’s crucial to decide when to budge and assume that the client is just hunting for a cheaper price and is simply making a test. If you are certain that the client will not make this rate, but you are prepared to lower your prices, lower them, but change the project to fit the new prices. Keep in mind that negotiation is not about you giving in 100 percent. If you claim that you will lower the prices, propose a quicker timeline or ask for a certain number of revision rounds.

Adding that Premium Touch

However, there will be times when your clients will be more than happy to pay a premium price for your services. Therefore, you should make the most of that chance when it pops up. Even so, Do not be afraid to offer the premium client other value-added services or packages.

Well, folks, that is an inclusive guide on how to price your freelance services in the Indian market. The main point to remember is to have a relatively accurate estimation of your skills. On one hand, it deals with a business mechanism, but on the other hand, it is an adequate price signal.