Devoted to WAHMs -Work at Home Moms

We faced this issue early on. For us it was a matter of just needing some sort of income, small or not, in order to be able to move forward. Of the low-paying jobs we did, most were one-time-only situations. For those that weren't, we made sure the client knew upfront that it was special pricing and they shouldn't expect it to stay that way. I think your analogy is a good one.

Laura - I agree with your approach. Low rates except as a special offer, equals twice as much work you need to do to earn a decent wage, and a fast track to burnout.

It's not about price. It's about value. Great list of resource links too.

Consider this post stumbled.

Hi lornadoone!

Good point! I fully understand the temptation to bid low to get work. I think all freelancers do it at one point or another. As a policy, though, it's not a good idea.

Hi Yvonne!

I actually think some of the life balance problems and burnout problems that freelancers face can be traced to low wages.

Thanks for the stumble. :-)

Advertising an "introductory rate" might be okay, but are you willing to work for less in order to draw in a new customer? Why not just charge someone your going rate and leave it at that?

I have learned that if you set your rates too low, then the quality of the client is usually low also. Most, I have found, are too price conscious always questioning your prices and wanting more for less.

All of my low paying clients are gone, having been replaced by people who pay my going rate. Less stress, more money -- I can deal with that.

Yes, you love to write, but you have a business to run as well. And children to raise and a husband who does not want you to scrape for work, etc.

Thanks Matt!

I couldn't have said it better.

Great info and lots to ponder. And the comments reinforce many of your ideas.

Thanks Mary Emma!

I think that this is a common dilemma.

Laura,

Excellent points. When I started freelancing more than 10 years ago, I charged a much lower rate than I do now. However, even then, it was not a low rate. I arrived at the rate based on advice from a freelancing friend and from my CPA. I think it was a good beginning rate ($50/hour), but I have much more experience now so my work is worth much more.

It is difficult to raise prices for regular customers, though. I have clients who have been with me for many years, and I don't charge them my current rate. However, I am gradually increasing their prices.

Hi Lillie!

Yes, knowing what to charge can be a dilemma. You also touched on what to do with long-term customers. Obviously there's a rapport built up there that you don't want to disturb.

When you have no visible feedback, reviews or testimonials to back up your rates and help justify them to the client's mind, lower rates can help you gain what you need to be on more stable footing for better rates.

Two things: Note that I did not say rock-bottom dirt cheap stupidly low rates. If everyone else charges $50, charge $45. That's respectable while just a little lower than the rest. Don't go charging $3. Sheesh.

Also note that I didn't say justify your rates to yourself. Writers get all indignant and bent out of shape when someone asks them to justify rates - why? That's a perfectly reasonable request. Saying you have 100 years experience and 50 million published books and not a goddamned review or feedback to show for it isn't enough. Get the backup. Period. If that means lower rates, so be it.

Adjusting your rates: I understand the analogy of the restaurant that raises prices. However, restaurants do usually adjust prices according to the cost of living once or twice a year or so. Grocery stores do the same (anyone bought coffee lately? The price jumps around like Tigger on speed.) Do I bitch? No. I expect rates to be in line with the competition and reflect the market industry.

Submitting a letter to your clients to let them know ahead of time to adjust rates is fine. Give them fair warning. Tell them why. ADJUST SLOWLY. Go from zero to 100 in 1 second flat and you're out of a job.

But generally? Everyone understands that sometimes, prices change.

James Chartrand,

Good points!

Still, I think the best strategy is to try and become the quality leader and not the cost leader.

Yes, everyone raises their rates eventually. That's definitely true. I really liked the idea of sending a letter to your clients in advance to let them know that you are raising your rates.

I still think that if you underbid on the first two or three jobs and then suddenly raise up to your real rates I still think that's a bad thing.

Thanks again for your feedback.

Laura,

Great points! I'm planning to read the links you've posted and give this topic a bit more thought.

Thanks for a helpful post!
Jeanne

Thanks for stopping by Jeanne!

Price is not the primary concern if we have consistently over-delivered to our clients. Enlightened clients will always support us because they know we add massive value in their work.

You're right Vivienne! Adding value is the key. The client should feel that they are getting top quality. Good clients understand that quality costs.