How to ease sticker shock for clients?

Erin, I'm not sure why you quote low rates to begin with. Why not just stick to the standard rates you feel comfortable with? This way no one has to nearly pass out, and you won't have to sell yourself short.

erinbee said:

I went full-time in March and have developed a great portfolio and some proven results for clients. But I have a really hard time when I meet new clients in need of writing work...they nearly pass out at my (low for the kind of writing I do) rate! This is scary, because I want to raise my rate at some point...not to mention the fact that once you get someone in at a low rate it's hard to raise it in the future!

How do you convince people who think that marketing and business writing could be done just as well DYI that you're worth your rate? Too many times I find myself selling myself short because I have a long grocery list and am worried about tax time. Should I just let the low-payers go on their merry way?

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I've just had experience with this, as I have changed my rates. When a client made a big deal out of my rate change, I told him that I had researched the going rates for the type of writing he wanted me to do, and that I was in the mid-level. For my level of experience, I felt that was fair.

I also sent him a link from an "expert consultant" for that particular industry, who was charging three times what I was charging. That seemed to suffice for him.

It's like he felt he was still getting a deal, and I was getting a very fair rate for my work at the same time.

It's a precarious call, when you are deciding whether to take or not take a job. I'm returning to writing, after dealing with illness for the past three years, and--for me, at least--the rules have changed. In order to increase my portfolio again, I have taken on clients who haven't been the best in terms of payment, but I found that--in the long run-- it's not worth it.

The client is looking out for the client, only. Their job is to get your skills at the lowest price. You have to look out for yourself. I have learned that the hard way.

Now, I speak out, up front, with any potential client and just state my rates, period. If they don't like it, fine. My rates are fair for my level of experience at this point. For me, if it means I work at the local bookstore up the street to meet all of my bills, so be it. It sounds like you could probably afford not to work with the client that is shocked at your rates, but that's a personal call.

I'm learning that the client is always going to say something about your rate and try to get you to go down on it. Whether you negotiate on that is up to you. I mean, if you've never written the type of piece you might write for that client and you want a sample in your portfolio, maybe you can consider negotiaing something.

Other than that, I would not budge on your rates. If you know that they are fair, for you, then stick with them.

Don't know if that helps at all, but I'm going through the same thing that you are going through with all of this.

Lisa

Sometimes they may not be as shocked as they pretend to be; they're just trying to get a deal.

erinbee said:

I went full-time in March and have developed a great portfolio and some proven results for clients. But I have a really hard time when I meet new clients in need of writing work...they nearly pass out at my (low for the kind of writing I do) rate! This is scary, because I want to raise my rate at some point...not to mention the fact that once you get someone in at a low rate it's hard to raise it in the future!

How do you convince people who think that marketing and business writing could be done just as well DYI that you're worth your rate? Too many times I find myself selling myself short because I have a long grocery list and am worried about tax time. Should I just let the low-payers go on their merry way?

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You're right about when they start at a low rate, it's very difficult to raise it later.

Personally (I used to be a self-employed accountant, so different field, but exact same client experiences), I let the cheapos walk. If they're going to complain, they'll always complain and they'll never see the value, and you'll either bend over backwards trying to make them happy and add freebies that devalue your work, or you'll resent them. Them, they'll just keep whining and complaining and will never see your value. They're miserable to work for. Although I usually increased my rate (hazard pay) for difficult people for compensation for dealing with them.

It's also been my experience that, when you charge too low of a rate, clients complain and whine more. Increased rates usually resulted in more respect for my expertise.

I've been told that, if 10% of your clientele think your rate is too high, and 10% think it's too low, then you're at the right rate. If only 5% think you charge too much, raise your rate until you hit 10%. In my experience, that holds true.

Generally, the more experience you have, the more you can charge. How do your rates compare to those with less than a year of full time experience?

Welcome to AW, Doug.

Erin, how are you doing with this? Been wondering?

--Lisa

Good Word said:

Welcome to AW, Doug.

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Thanks.

Actually, Quid, as far as the cheapos go and letting them walk, I agree--if you can afford it and are past just starting out.

At this point, unless I was doing work for a non-profit (which I am not), I would walk if it was not in my $ range. The exception to this is if it was a unique and interesting project that did something to further my career or aspirations in some other way.

I'm working mostly in the software industry, and if I'm talking to a client who can't pay my rate that's okay, but I won't take on the project, simply because I would feel lousy doing it.

Set your rates yearly or every quarter or half-year depending on your biz, then stick to them. If you are going to cut a deal, there had better be a real good reason that is explainable to other clients who get wind of it and the IRS.

CyberCobre said:

Set your rates yearly or every quarter or half-year depending on your biz, then stick to them. If you are going to cut a deal, there had better be a real good reason that is explainable to other clients who get wind of it and the IRS.

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As long as you pay your taxes, a freelancer's rates are of no concern to the IRS.

Or to CRA, the Canadian equivalent. Or to any of the many taxation agencies in the world. Because, after all, this forum is international in its membership.

Of course. I was thinking globally and posting locally.

I participated in a charity yard sale for the Lukemia Society last Saturday and had a chance to use my business acumen which is on topic for this thread.

A leady came by and asked how much for the paperback books on my table.

I told her fifty cents.

She countered that the table across the way was selling them for a quarter each.

I asked her how many she bought.

She confessed that she bought none.

I told her that she didn't buy them because they were not worth a quarter, where mine are worth much more than fifty cents, I am practically giving them away for charity.

She ended up buying two.

After she paid, I thanked her and then jingled the Donation Jar with my best dimply smile. She dropped another dollar in it before scurrying off.

Never drop your price to a legitimate customer, to do so either lowers your quality to your competitor’s level, or slightly devalues your worth in the clients eyes.

The trick is to convince people that you are worth every penny you charge, and then perform to their expectations and beyond.

I found over the years that my repeat customers supported me in my career and rarely talked me down.
People who entered a business relationship with me by negotiating price first, never came back for more.

I stayed with my dependable customers.

Good luck.