What should you quote a new client?

Posted by | Posted in , | Posted on Saturday, March 06, 2010

The age-old question for the freelancers or otherwise self-employed among us is "what do I charge?" Often when approaching a new client, one is presented with a dilemma about whether to quote low and not get paid as much as you possibly could, or to quote high and risk not getting the work.

Always keep in mind that no matter what you charge, clients will usually have the same expectations from you to get things completed on time. They will always expect to get what they asked you to do, but if they are paying you a high amount, they will definitely want a higher quality finished product than if they were to pay someone a cheaper rate.

If you already have a solid client base and/or work available, you should always quote as much as you think the client is willing to pay, and never lower than you think you're worth. A decent client is willing to pay higher than market rate if you're reliable and your work is good. Don't undersell yourself. Often it pays off to be bold and ask for a higher rate, and see who will accept it. Once you've done it with one client, it becomes easier to do it again. If you're asking for something higher than you've been paid previously, imagine you've already got clients paying you the rate you're asking. It'll make you much more confident about it.

The only times you should quote a low rate is if you're just starting out, or you're otherwise desperate to get new projects. You can always renegotiate to raise it for future projects once trust is built, or look for new clients who are willing pay you more. Unless you've signed an agreement, you're not under any obligation to keep clients who can't afford your rate.

A while ago, I was in need of work, and I offered a rate about 25% lower than my usual to try and attract some quick business. I got a client interested, exchanged some email messages, and they said they were busy this week, but they'd get their manager to have a phone meeting with me next week to discuss the project and "blah, blah, blah." Well, a lot can happen in a week. There is sometimes very little difference between having no work and being flooded with more work than you can handle. By the time they were ready to talk to me, I'd already signed up some projects at my normal asking rate, and told them I could no longer offer them the cheap rate. They did not reply.

It's not always a big deal to lose work because you're asking too much. Move on to the next client. In the long run you might end up doing much better.

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