I recently hosted a brand new webinar called “How To Break The Hourly Rate Trap” for the Freelancer’s Union. I had a feeling this topic might be right up the freelancer folks’ alley, but I wasn’t prepared for the incredible level of engagement and energy from the folks who showed up. It turns out that just about everyone wonders if their pricing is on the money (sorry, I couldn’t resist!).
So, why is pricing such a challenge for creative freelancers? Well, pricing creativity is inherently subjective, which means we have to be part sleuth, part psychologist, and part CFO.
Is it any wonder we avoid the issue and keep pricing by the hour, low-balling estimates, and over-delivering due to the dreaded scope creep and terrible clients?
As a business coach for creative entrepreneurs and freelancers, former rep, and psychology major, this is exactly the kind of challenge I enjoy, so let’s break down the pricing puzzle so you can move on with your business and life already!
We’re going to break it down into two parts (1) Identifying your target audience’s motivation to buy (2) Messaging and packaging your service to sell.
Are you ready to get a handle on pricing your creative services?
Part One: Identify What Motivates Your Target Audience to Buy
Last week I hosted Thanksgiving and our guests included a couple of old friends who often host Thanksgiving. The main cook in this couple, Ellie, is probably as close to Martha Stewart as it’s possible to get, so the bar is pretty high. In a moment of what can only be described as a lapse in judgement, I thought I might forgo the turkey altogether and do a couple of roast chickens instead. But when I mentioned it to my husband, he looked skeptical and told me “You’d better run it by Miss Thanksgiving first.”
I bottled out! And it turns out it was the right call (see text below) 😂. I knew my audience and roast chicken, no matter how tasty, would not fly (sorry, I never met a pun I didn’t like!)
Pricing is as much about perceived value (a client’s experience and existing spending habits), and emotion (how a client feels and how they want to feel), as it is quantifiable value (materials, craftsmanship, production costs, etc.). If you don’t know what matters to your audience, you risk pricing too high (aka pricing yourself out of the job) or pricing too low (and the client questioning your credibility or quality of your work).
Action step: Put your sleuthing hat on and figure out what motivates your ideal client. Drawing a blank? Here are a few prompts to get you going:
- Where are they in their business journey and what have they already tried?
- How educated are they on the subject of your expertise?
- Have they done their research? Talked to other creatives?
- What do they consider worthy of investment, even giving them bragging rights? E.g. nothing says “we’re doing great!” like a brand spanking new brand identity, website, and photos.
- What do they deem frivolous or a silly use of resources?
- What investment might give them bragging rights? E.g. a re-branding, hiring and retaining a top-level team, getting funding, moving into a new space, etc.
Want to go deeper on this topic? Check out this post on what motivates high-quality clients to invest in high-quality design services.
Part Two: Messaging and how to package your services to sell
Hopefully, part one has given you some valuable insight into why some clients happily pay a premium for creative services, while others nickel and dime you from beginning to miserable end. So, you’ve done your research and you’re feeling a whole lot clearer on what they want, are motivated by, and will invest in.
Hurray! Good work!
Now let’s get into what you DO with all that great information.
The next step is to communicate the value of what you’re selling to the folks who are ready to hear, receive, and invest in your services.
If your process thus far has been to share your portfolio online and call it a day, you’ve probably learned it’s not very effective at converting prospects into paying clients. But when you define services or offers that (a) state the problem (b) spell out the solution (c) outline the process and (d) communicate next steps, well, that’s a game changer baby!
Suggested action: Describe in a few sentences or bullet points:
- Who they (ideal clients) are e.g. “You are a creative freelancer or business owner who is looking to land better clients, make more money, and streamline your business” (Pssst, if that’s you, let’s talk!)
- What they struggle with most (obstacles/problems)
- What they want to achieve (outcomes/results)
- How you’ll help them achieve that outcome (your process)
- What they get (deliverables)
As you can see, pricing is not a clear cut thing, but rather a fluid dance between you, your desired clients, industry, and market conditions. When we let go of looking for absolute formulas and answers, we realize that asking a few really great questions will go a long way to pricing with confidence.
If you haven’t already downloaded my pricing guide, you can do that here. And if you’d like more one-on-one support, let’s chat about options for you!