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Am I charging too high for design?

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Re: Am I charging too high for design?

#11
post #6
post #3

The sites look really good - I think they warrant $40-50/hr. You may want to consider offering multiple "packages" if you don't want to lose those clients. $3000/$40 = 75 hours... if you offer a package that's 25 or 50 hours, you can lower the price and maybe keep the client. That said, 1. You have to set expectations clearly - if they're not paying for a $3k website, they're not getting a $3k website. (most people w…

Yes, I'm not getting enough work, and 9 out of 10 people who contact me go elsewhere after hearing my prices, even though all of them love my designs. The problem with the whole "packages" is that I don't do that. Most people who come to me just want a new design and aren't concern about whether it takes me 10 hours or a hundred. Like-wise I quote a fixed price and not an hourly rate, most being in the $3000-$3500 ra…

So 9/10 people come to you, most of the time you quote them $3000/$3500 irrespective of their budget and they walk away?

If you don't want to call them "packages", that's fine -- but if you're giving fixed-price quotes of $3000-$3500 irrespective of the client when all they really want/need is 10-20 hours of your time you might be doing yourself a disservice.

By the same token, if your experience tells you that you really need the 75 hours to do a good job for a client, then don't sell yourself short.

Maybe you need to ask your clients to clarify what their expectations are in terms of hours and incorporate that into your quotes?

Maybe you need to clarify that you can be flexible with the overall price in exchange for less time (e.g. maybe do fewer revisions, simpler designs, whatever -- I'm not really a design expert).

Or maybe it's time to start billing by the hour? :)

Of course, you may hold yourself to a high standard and feel that you require that much time to do a "good job" by your clients. That's fine too, but understand that's a business decision that will leave you with fewer clients.

Just my two cents, but hope it provides some food for thought.

Re: Am I charging too high for design?

#12
post #5

I should also add that I'm based in Dhaka, Bangladesh. Does this warrant a lower price, since I'm unable to meet with clients face-to-face?

I personally do not think it has any bering on the rate, you charge what the market can bear. Outsourcing was supposed to be the cure to the expensive American and European work force by leveling the playing field. What no one accounted for was there are only so many people in the world that are even interested in doing jobs that are technical in nature. That amount of people is a very small segment of the population so even with Eastern Europe, India and China now supplying the global technical work force there are not enough skilled people to go around. While the market corrected itself, it slowed wage growth, but those days are over and you should charge accordingly. A lot of people in emerging markets like India think they have to undercut US prices to compete which is just no longer a reality, the reality is there are not enough hands to reap the harvest and your leaving money on the table if your trying to compete based on price.

Re: Am I charging too high for design?

#13
post #6

Earlier quoted context omitted.

Yes, I'm not getting enough work, and 9 out of 10 people who contact me go elsewhere after hearing my prices, even though all of them love my designs. The problem with the whole "packages" is that I don't do that. Most people who come to me just want a new design and aren't concern about whether it takes me 10 hours or a hundred. Like-wise I quote a fixed price and not an hourly rate, most being in the $3000-$3500 ra…

So 9/10 people come to you, most of the time you quote them $3000/$3500 irrespective of their budget and they walk away? If you don't want to call them "packages", that's fine -- but if you're giving fixed-price quotes of $3000-$3500 irrespective of the client when all they really want/need is 10-20 hours of your time you might be doing yourself a disservice. By the same token, if your experience tells you that you r…

Once a client gives me some specifics regarding their projects, I can estimate how much time it'll take, and I quote a fixed price based on that. In most cases my estimate is either spot on, or off by at most an hour.

The problem with offering a "lower price product" is that none of the clients want them, although it is possible that I simply haven't marketed it properly.

Re: Am I charging too high for design?

#15
I think the problem comes down to the kind of market and audience you're attracting. As a freelancer you really have to position yourself for the right market that corresponds to your rates. HN is a very designer/entrepreneur driven community. my guess is that people on HN would want to spend less money on design and more on development.

I would update your website itself also. To me your website doesn't speak the same level of sophistication as the piece you see in the portfolio. Your website represents your self and your identify as a designer. Dress it up a bit, this is your best chance to really showcase your design sense and originality. As many other people mentioned before, package your product well.

As a full time freelancer, you should spend at least 30-50% of your time marketing yourself and networking with potential clients. Building a solid customer database and having these customers refer you to perspective employees are most important if you want to have a consistent flow of work.

Are you really putting your work out there? Here's a quick checklist to get the ball rolling.

1. Do you regularly update your portfolio with new pieces? 2. Do you have a profile on all the designer networks? (behance.net is a good one to start with). 3. Do you keep in touch with your past clients and make sure they're happy with your work? 4. Have you considered starting a blog that would attract potential customers with valuable information about graphic design and design theories that they could use for their own projects?

I think with the quality and level of work in your portfolio you certainly deserve to get that rate. I've worked with other designers who charge twice as much as you do, but then again, they all presented their web presence really well. When a customer tells you your rates are too expensive, it doesn't necessarily mean that they don't have the budget. It could mean that they don't perceive your value at the price you quoted. As long as you can convince your clients that you're worth every penny and MORE, you should have no problem getting the rates you want.

Re: Am I charging too high for design?

#16

Earlier quoted context omitted.

So 9/10 people come to you, most of the time you quote them $3000/$3500 irrespective of their budget and they walk away? If you don't want to call them "packages", that's fine -- but if you're giving fixed-price quotes of $3000-$3500 irrespective of the client when all they really want/need is 10-20 hours of your time you might be doing yourself a disservice. By the same token, if your experience tells you that you r…

Once a client gives me some specifics regarding their projects, I can estimate how much time it'll take, and I quote a fixed price based on that. In most cases my estimate is either spot on, or off by at most an hour. The problem with offering a "lower price product" is that none of the clients want them, although it is possible that I simply haven't marketed it properly.

So they don't want a lower priced product, but they don't want the higher priced product either?

Confused now. :)

Is it the price or the outcome you're talking about here? I'm not talking about offering a "lower price product", I'm talking about offering your clients a little flexibility to suit their budget (while covering your own bases in terms of time spent on any project).

In any case, there's nothing to stop you from communicating that you're willing to discuss options on the quote if they're willing to make concessions wrt your time/revisions.

Maybe I'm just misunderstanding. Good luck all the same!

Re: Am I charging too high for design?

#17
Assuming you are targeting the correct market for your work (which other commenters have addressed), then you need to let basic supply/demand gauge your pricing.

So the question to ask yourself is this: do you have enough work? If you have more work than you want, raise your prices until you have less work. If you have less than you want, consider lowering your prices. If you are already taking less than you feel you should, then focus directly on who you are targeting and how you are approaching them.

Re: Am I charging too high for design?

#19
9 out of 10 people are just window shopping and will contact several other web designers with the same brief.

Additionally, you have the problem of people expecting you to be cheap because one of the few things your site tells me about you (other than showing me some sound enough finished work) is that you're based in a low income country and know how to use the right tools.

People that want a cheap offshore guy that knows their way around Photoshop go straight to the enquiry form. People that are prepared to pay more care about whether your design goes through multiple iterations before the final version, whether you'll work with them to make it reflect their company image, whether you understand usability, whether you've worked with the same clients over a number of years etc. - they'll probably skip your site altogether in favour of the next one with more marketing fluff.

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