Find the Sweet Spot in How Much to Charge
This topic may not seem in line with the theme of the month, which is “Give Compliments Freely,” but it really is. The conundrum of figuring out how much to charge for your work is full of innuendo and flat-out esteem issues. For if you can’t compliment yourself for a job well done and charge accordingly, then why should anyone else praise your efforts and pay you accordingly?
In a politically correct world, many assume that it’s just not polite to admire yourself too much. Self-adulation often is construed as egotism or self-aggrandizing behavior. In fact, it’s a necessary and healthy ingredient in the mix of a successful web designer, content writer, project manager or small business owner.
What the Market Will Bear
In the field of web development — and for everyone who works within the industry — fees for services vary widely. When you seek answers for how much to charge from an LA or NYC business, you’ll get a wildly different answer than from someone working in the middle of Missouri. Even within the same locale, fees for web content of every kind swing up and down like a monkey in the trees, at least based on our experience at Ray Access.
So while business schools always advise you to investigate the marketplace and base your fees on what that market will bear, that’s not always a reliable measuring stick when it comes to web development or content writing. For one thing, most of us can work from anywhere in the world. We have a writer, for instance, who lives in Costa Rica half the year; he says our rate of pay allows him to live like a king there, but barely covers his rent back home.
Your competition hails from around the world, too. Content writers in India, for example, charge much, much less than Ray Access for similar word counts — and Ray Access offers one of the lowest rates in the U.S. Granted, the quality is never as good, but some clients shop only for bargains. At the same time, great writers in Kansas can charge less than great writers in San Francisco merely by virtue of the cost of living at the different locations.
What You Can Bear
Instead, how much to charge for your web services should be based on two primary indicators:
- How much do you need?
- How valuable is your product or service?
Most website content developers and providers charge by the project. Clients have an easier time with their website budgets when they have a total cost projection in hand. And you aren’t plagued by a client bothering you about going over budget. Common wisdom then supposes that you should figure out how much to charge by first deciding how much you need to make per hour of hands-on work to pay your bills, including coverage for overhead.
It may take a little experience to get right, but the second step involves determining how long a certain project will take you. Multiply those hours by your needs and that’s the bottom line figure for how much to charge.
Show Your True Value
Putting your true value into the equation takes a bit more finesse, as well as an ability to negotiate effectively. A bottom line should be just that — the least amount you can receive and still stay in business. So if you have to earn an average of $50 an hour to live comfortably and continue to run your business effectively, then you really need to charge enough to cover that need or you’ll soon be out of business and looking for a guaranteed hourly wage.
How often, how much and how effectively you compliment yourself on the quality of your work comes into play as you figure out how much to charge — and feel good about it. You can fill your website with all the testimonials in the world, but if you don’t honestly believe that your work is valuable, then you’ll have difficulty building a nice profit into your fee structure.
Knowing how much to charge is a delicate balancing act that takes in all the variables. It’s not an easy answer and one that keeps many small business owners up at night. Experience and necessity, coupled with a healthy dose of self-approval, gets you to a place where you become comfortable with your rates — and clients will sense your determination and pay you accordingly.
Ray Access is a content marketing firm that delivers targeted words to empower your business to succeed. Contact us about your specific project to receive a quote. We write website copy, blog posts, e-newsletters, and more. Everything we do is thoroughly researched, professionally edited and guaranteed original.