I meandered into the Art/Design section of a Barnes and Noble
out here and I looked at some of the other business graphic design books that
were available. As I went through a few of these books, I couldn’t escape the
nagging feeling that these “business design” books just seemed to provide a lot
of theory and not much else. Here are a few direct quotes I took from what I
read:
- Learn to negotiate effective with clients to create a win-win situation...
- The most important thing about taking time away from your freelance business is just that – taking time AWAY.
- If you decide to embark on a freelance career, the most important person to make a complete commitment to is yourself.
In all fairness, I’ve taken these out of context, but I read
these and thought, “Duh, thank you for
telling me things I already know. How in the heck will these things help me
bring in clients or make more money?!?!”
Putting aside my frustration that most of these books just tell me things I already knew, one of my
major gripes I had with these books is how they advised designers on how to
price their services.
Designers often find it hard to price their services -
perhaps you might be in that boat as well. Well, these “design/business experts” have come up with complicated algebraic
formulas, voodoo chants, long forms that you enter in a bunch of variables and
other odd methods for calculating how to price design services. But all of the
books I'd checked out they failed to look at reality of how a free market
economy works, and how freelancers ultimately price their services.
Here’s the reality about pricing your design services: you
can do all of these algebraic formulas you want, or key in calculations to find
how much you should charge per hour until your fingers to raw, but in the end
your clients and the marketplace decide how much you will get paid. For
example, if clients feel that your price is reasonable and that they are
getting value out of working with you, you'll get more clients. If your price
is too high for the value you provide, you'll start to see you have less clients.
Price isn't something that should be created in a vacuum or by some silly
formula. Price/cost is how 2 people compare the value of an item or service, if
your clients feel that the value of your
services is at or below the level your
charging, they'll buy. Conversely, if clients feel the value of your services
is less than the amount you charge, they won't buy unless you can convince them
otherwise. Does that make sense?
Bottom line is that I walked away befuddled and disappointed
at some of the advice these experts were giving new designers on how to price
services. You can price your services without considering the market and your clients - formulas may serve as a crude guide but just because your formula points out that you should charge $250/hr. doesn't mean you could or should do it. Ultimately, we as freelance
designers do not set our prices, our clients do.
Pricing your services has much more to do with what your
clients perceive your value is rather than punching in arbitrary numbers your
calculator. You’ll find it’s covered in-depth in my Being a Starving Artist
Sucks book from pages 483-494.
PS - You'll want to check back next week for some ground-breaking announcements: a new audio cd will be available for purchase on the web site (there's over 2 hours of content on there!), you'll find out how you can apply for a free copy of my second book called, "Verbal Kung Fu for Freelancers".