How To Price Projects?
Determining what to charge for freelance projects can almost be impossible. It's hard to figure out a rate that won't lose the client while not robbing yourself of extra money. The good news is there are a few standard pricing models you can use.
1. Time-Based (Hourly, Daily, Weekly)
This is the easiest to start out with. It's simple to calculate your rate for a set time. Clients already understand and are used to this pricing model. But this model limits your income since there are only so many hours available. It also penalizes you as you get faster.
2. Fixed Price
Moving to charging a fixed price for the project is a great way to start breaking out of being paid only for time worked. You can charge more for your expertise and not be penalized for becoming more efficient. However, you need to be good at estimating and limiting scope; otherwise, you will work more and make less than time-based pricing.
In this model, you figure out the project's value to the client and then charge a part of that value. Pricing this way gets a client thinking about return on investment and the value you will bring, not the hours you are working.
4. Productized Service
A productized service turns common projects into pre-packaged services. With this model, there are no negotiations on scope or budget. Everything is already set similar to ordering at a restaurant. You can also optimize and become highly efficient to maximize income to time spent on pre-packaged services.
While all of these pricing models are common, if you want to maximize your income, you need to focus on getting to a value-based or productized service pricing model.