Episode 003: Pricing Methods

The Business of Freelancing show

Summary: Hosted by Brennan Dunn and Eric Davis 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 Mic, Shush 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. Transcript We're hoping to get a transcript later.