Price is a Conversation

The first lesson I had to learn is that price is not a number. Price is a conversation.

When you tell your price as a freelance, you are having a conversation about many different aspects of your business. You claim your position, your availability, your contribution.

When you say: I will do this job for one dollar, some people think that’s a great deal because they just focus on what they spend. What you are saying is: “I will not create any more value than the dollar I ask.” It’s not a good deal for anyone involved.

As soon as you understand how important is to provide value and use the price as the indicator of that value, you will feel more confident with your rates. How many of you are convinced with your rates? Good. You know you will deliver more than that, right? So today is the best day to raise your rates a little bit and work on providing more value.

When you realize that the price is a conversation about the value, you can answer a few tough questions very quickly. Let’s say your client asks for a discount; you are having a conversation about value, ask them why they deserve it. They might have a good reason for it. Maybe they value their long term relationship with you, and they only want to feel you recognizing it too. Maybe they are going through a rough time, and your discount can help them stay afloat. Maybe they don’t have a good reason, and they are trying to snatch a deal. All these information are useful to know, so ask why next time you get asked for a discount.

Another popular question is: “why do you ask so much? Your competitor XYZ is way cheaper. They can do the job for half the price, can’t you match their price?”

As we said, the price is a conversation about value, so the correct answer is: “do you also want me to match their quality?”

4 thoughts on “Price is a Conversation

  1. I am so memorizing that last reply 😀
    Every freelancer should read this and think about how they’re positioning themselves.

    I take pride in the fact that my rates are higher than average in my community. I often “lose” clients on the grounds of being over their budget, and I don’t have a problem with that. My clients never haggle and are happy to save up for my services & pay the full price.

    Liked by 1 person

  2. Too many clients intuitively undervalue the contributions that a good designer/developer brings to their business. It’s important that we take the responsibility for educating them on the long term value of our work (if its actually there) if we want to get paid what we’re worth.

    Liked by 1 person

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s