Podcast

The Business of Freelancing, Episode 3: Understanding Pricing

By Brennan Dunn

Show Notes

  • Fall in Virginia
  • Writing fiction
  • Pricing freelancing services
  • Double Your Freelancing Rate
  • Reverse engineering your former salary
  • Value based pricing, value delivered to clients
  • Origins of your price
  • How to decide on a price
  • Cost plus – Cost of materials, cost of equipment, labor cost, and profit.
  • Commodity pricing
  • Lack of major expenses for freelancers when using a cost plus model
  • Cost of living
  • Market rate
  • Battle between supply and demand
  • High demand drive rates up, low demand drive rates down
  • Also a commodity based strategy
  • Economic substitutes
  • Imperfect market
  • Value based pricing (Consulting)
  • Hired as an investment
  • Goal is to make more money in the long run than the cost
  • Emotional need
  • Charge based on results
  • Reflecting on the customer’s business and proposing a solution to help
  • Using your skill (software, copywriting, etc) as a means to the end (business results)

Next Week

Interview with Nathan Barry. If you have any questions for him, post a comment below.

Resources

Brennan – Samson Meteor MicShush Mac app, and The Strategy and Tactics of Pricing: A Guide to Growing More Profitably.
Eric – Million Dollar Consulting.

Action steps

Ask your next potential client questions that get at the business value of the project:

  • Why are you looking for this project?
  • What kind of financial outcomes are hoping a successful completion of this project will bring you?
  • What would you consider a failed project?

Try to get to the root of why the client is coming to you and see what you can do so you can deliver a substantial amount of business value to them.