It’s not easy to set the right price. In this post I will help you finding that sweet spot for your freelance pricing. I will show you the most important factors to take into consideration. Ready? Let’s go!

Your sweet spot for your pricing

  1. Find out what exactly the value is that your clients experience, don’t assume anything
  2. Find out who your customers are that have a must have mindset for the right reasons (= your value)
  3. Set a pricing that is based upon your own situation
    • How much money do you minium need to live the life you want
    • Think about how much you will need to sell to get to that amount
    • Make and keep things realistic for yourself
  4. Train yourself in communicating your price
    • Believe that your price is the right one
    • Stick with it until successful

Why sales people ask what’s your budget…

One concept you definitely need to understand is the principle of relativeness. It will change your mindset about money completely if you grasp the core of this. If you understand this principle you will see that your pricing, the exact number you put on your services or your product is most likely not the decisive factor for you to make a sell.

Ever tried to buy a car? One of the first questions that you are asked is ‘what’s your budget?’ Salespeople know that any person comes with a certain buying or spending range. The same car can actually be sold for 500€ to one person and perhaps 1.000€ to another one. It doesn’t really matter what the price tag says, that car will eventually be bought by someone who wants it for what is the ‘right price’ in his eyes.

A product or a service doesn’t have 1 specific price but rather has a whole price spectrum. Any thing will be sold at any price. There are people and whole business specialized in selling ‘cheap’ quoted products and others are specialized in selling ‘premium prices’ of that same product. You can buy a ‘cheap’ Ferrari or you can buy an ‘expensive’ Lada. It matters to know what your clients considers cheap or expensive, so it is less depending on what you think of it. 

Most of the time, cheap or expensive is not what the client is looking for. She is looking for something different… Value. 

Value is relative

There is a difference between the value that you think you give and the value that the client is actually experiencing. This means that what you think might be highly valuable to your client isn’t necessary so. The client might still experience your product or service as highly valuable, but maybe for a totally different reason.

There are two things you need to consider when thinking about value.

  1. Does my client see my product or service as ‘a nice to have’ or as ‘a must have’.
  2. Why is it that my client considers this as such? 

You can already guess that when you’re client has a ‘must have-attitude’ your value is already higher than anything. It also means that a potential client is ready to break the psychological ceiling of his price range for it. It’s definitely worth something to him. But… you need to connect the values of your own product or service to his ‘why’ before you can ask the right pricing.

If you know why he has ‘a must have’ then you can check if you are really strong in this field as well. If you don’t and still sell something for a premium price, the client will end up disappointed. Or if you don’t make the sale, you might wonder why he paid a premium price to somebody else whose services might not even come close to yours!

Don’t get me wrong, I’m not pushing here into the direction of manipulation, but you might want to emphasize the strength of your service/product if this matches his ‘why’. This will set your pricing in a totally different daylight.

Confidence is your decisive factor

What matters more than the actual price tage is your confidence in your own price setting. You are being your own judge or even executioner when it comes down to your price setting.

At a certain point in time the client will ask that perhaps dreaded question: “How much does it cost?” If you communicate your price without radiating confidence, you have lost the deal almost 100% of the time. So even though the number on the price tag is relative, it matters highly. It matters to the client to a certain degree, but it matters most of all to you. Having no confidence in your own pricing, the client will smell something is not right. The doubts that you feel will be projected onto the client, giving him a weird and perhaps uncomfortable feeling. Would you buy if you would be in such a case?

It takes confidence to build confidence, a principle that counts for a lot of things going on in our lives. If you have sold once to a customer, you can do it again. In fact, it will already be a lot easier the second time. And it only gets easier in the future. You need to pass that door only once to know you can do it again. But how do you pass that door?

Set yourself up for success

There are some practical things you can do to grow your confidence.

  • Communicate your price in advance.
    Display it for anyone to see, once it’s out there in the open (on your website), people that come to you will probably already have a good idea on how much they will be paying when buying your services or products.
  • Investigate your potential customers.
    Remember that any client will pay any price for anything. It’s up to you to find that customer that matches your price setting with his why. But even a customer who has ‘a nice to have’ mindset might still buy at your premium price because he considers it to be a bargain! That’s how relative it all is and can be.
  • Find peers or people who you trust in this field that support you and might even push you to set the right price.
    In most cases, that is not your mom, dad, boyfriend or girlfriend. I mean experts in the field that know what they are talking about and have been there.

Take action, find your sweet spot

What’s your price?

  1. Find out what exactly the value is that your clients experience, don’t assume anything
  2. Find out who your customers are that have a must have mindset for the right reasons (= your value)
  3. Set a pricing that is based upon your own situation
    • How much money do you minium need to live the life you want
    • Think about how much you will need to sell to get to that amount
    • Make things realistic for yourself
  4. Train yourself in communicating your price
    • Believe that your price is the right one
    • Stick with it until successful

I hope that you now understand how relative pricing is and that it depends on the combination of your mindset and that of the client. If you doubt about it, remember that even the most expensive and luxurious car manufacturers have ‘cheap’ versions. Good luck!

Man looking at tangled lines