Pricing
Intern
Article
The Price
is Right
Key info
‘You alone
decide your rate.’
‘some of the most established practitioners on the planet
still get pangs of imposter syndrome when the stakes get higher than they’ve
ever been before. ‘
‘Fundamentally,
your rate, fee or whatever else you want to call it, dictates how you
work.’
‘as a creative, you need to think carefully of the context
of your work each time you’re setting your rate.’
‘Sometimes, but I’d urge you to not rely on these by
default, an hourly rate or a flat project fee might be appropriate. Other
times, a value-based approach offers you far more appropriate compensation for
your hard work.’
Hourly or Daily Rate
Advantages:
-
Bill clients for all work
-
Accounts for unforeseen issues / client changes
-
Discourages amends
Disadvantages:
-
Too moderate of a rate
-
Pressure from client to spend less time on the
project
-
Not workable with many staff
Project-based Rate
Advantages:
-
An agreed, itemized, signed schedule will
protect you from client add ons.
Disadvantages:
-
Clients may add extra deliverables within the
agreed fee
-
Must have a good understanding of personal
workflow, workload and calendar.
-
risky
Value-based Pricing
Advantages:
-
More holistic approach
-
You understand the clients goals
-
Reflection of the value you can add to their
company
Disadvantage
-
Requires more strategic thinking
-
Earnings link directly to performance
Conclusion
Pricing yourself has a lot to do
with confidence. You have to understand
The worth
of you’re work. I think it comes with experience. The most suitable pricing
strategies for me currently is by hour or project based as I don’t feel I have
the confidence to use the Value based approach. There are some issues with the
hourly/project based rates but I am aware of them and will hopefully avoid
them. Signed contracts implemented ahead of time should hopefully resolve some
of the issues, along with pricing the work sensibly and realistically. The
Value based pricing approach has the least number of disadvantages but requires
the most amount of experience and industry knowledge. Therefore, I would
implement this tactic when I am more familiar with the industry.
Next Steps:
Talk to
those who are further along in their career
Calculate
overheads
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