Defending Your Prices

Recently I had a client request a quote for a small project--a landing page for a new website. I quoted a price based on my pricing parameters, and the response I got was this: "this seems awfully high for such a short project. Would you consider charging less?"

Once upon a time, I would have considered doing it. I would have had an insecurity attack, thinking my price was really too high, and would have offered a lower quote. Here's a hint: never do this. Every time I've done it, it hasn't worked out well for me--either I didn't get the project anyway, or I got a client who continually tried to negotiate me down--and got stuck working for much less than I was worth over a longer period of time. If you show weakness once, folks, it's all over with that client.

The thing is, I knew that price was reasonable for that project. I knew the type of work that would go into it. And I knew that despite this client's protestations, I was still probably undercharging. So I didn't back down. Instead, I justify my prices.

If you haven't been called upon to justify your prices yet, don't worry--you will. The good thing is that most clients are reasonable too--and in most cases, once they understand why you charge what you do, you'll get less resistance. Those who are unreasonable are probably not ideal prospects--if you've done your pricing homework, that is.

Here are a few things to consider when justifying your prices to clients.

You have overhead, too. I hear over and over that freelance writing is a low-overhead business. Maybe that is true--sometimes. But you're paying twice the Social Security and Medicare taxes that employees pay--that's a business expense. Internet costs, computer costs, rental for your home or off-site office--all business expenses. And let's not forget marketing, classes to build your skills, even costs of living. The truth is, if you don't charge enough to cover your expenses, you can't provide your services to anyone--including them.

Just because it's short doesn't mean it's easy. This is pretty common with me: I'll send out a quote on a short but complicated project, and I"ll get back a reply to the effect of "But it's only 2,000 words!". The thing is, some promotions take time to get right--even if they're short. Think about how much has to be packed into a tagline or postcard mailer copy--just because these are often just a handful of words, does that mean you should charge pennies? No. Explain what goes into the project, and that if you were working for a really low price, you wouldn't be able to afford to put the time in that it takes to do this type of job right.

You're more qualified than the cheap guys. I occasionally get a question from clients such as "why do you charge $x when the guy down the street charges $y?" I don't go off and criticize the guy down the street--instead, I simply list my qualifications, which the guy down the street might not have. I'm not the cheapest guy on the block for resume writing, for example--but I'm CPRW-certified, I have a history of working with executive search firms and larger resume-writing firms that serve executive clients, I've written hundreds of resumes for the client's industry, and my interview rate is over 90%.

Next time a client questions your prices, don't back down. Put some thought into your initial quote--based on what you need to make to meet your revenue goals--and give some justification. Chances are, you'll get paid what you're worth a lot more frequently.