How to Set & Negotiate Prices
Being your own boss is an empowering thing. It can feel overwhelming sometimes, which is why preparation is key for a smooth-sailing business. And the first step is to set your price rates.
How do you do that?
First, consider a few relevant factors; the industry, market, and desired income. Then set a minimum hourly rate, and multiply that by the expected number of working hours for each project.
Once you know your rates by heart, you will feel more confident to present it to the client. But keep in mind:
- Present a rate that is slightly higher than the one you want, because the client will always negotiate.
- It’s okay to agree to a lower budget as long as the price is not under the market value of your service.
- It’s still okay to work with a lower rate if the client presents you with tangible benefits.
- Did the client agree to your rate? Great! But don’t start working without having a signed contract in hand.
