One thing that I’ve extremely struggled with as a Web and Graphic Designer is that fine balance of how to price design work. We’ve all been there and told ourselves “We don’t want to scare them off” or told ourselves “We’ll work with the money they’ve got…” and then convince ourselves that it’d be good for our portfolio..then it turns out we have an average looking website that we didn’t work very hard on, and all to show for it is a paycheck that doesn’t cover our rent.

I’ve compiled some resources on where to go from here. As a freelancer, it is in your best interest to price yourself at what you’re worth. If you’re relying on freelancing full-time as your means of income, you need to make sure you are charging what you need to charge to make ends meet. If you’re student and doing side projects to build your portfolio, ignore this.

But if you’re serious..read on, it can be very costly to yourself and your business if you don’t charge appropriately.

SO what I’ve done is put together a list of links here that have been useful to me as I’ve searched for the truth behind the ever so pesky idea of pricing. I’ve also included some tips I’ve learned along the way.

Tip #1 Don’t undercharge.

Simple enough. Charge what you’re worth. And remember: don’t simply calculate based on how long it takes. Understand that people not only pay for your time, they pay for your training. It make take you only an hour to design a flyer. But that flyer may be worth 400 bucks instead of the 75$ an hour price tag you charge.

#2 Research

Read this handbook: The Graphic Artists Guild Ethical Pricing Handbook youll be surprised at what some of the standards are for pricing. For a long time I was way under this, and didnt know what was standard pricing for a design professional. (theres actually numbered figures in here so that will really help as a reference for your clients)

It doesnt hurt to look around and find out what other competitors are charging. As a freelancer you cant always compete with design firm prices (because they are so high) but you can charge a little below them. If youre client thinks the price is a little steep, you can reference competitors and explain how theyd be paying a lot more not going through you.

#3 Undercharging hurts everyone

By setting prices way too low, not only does it hurt the industry, standards go down. Call it destroying and Walmart-ing the artform. Its pretty simple, do great work, and charge what its worth. Dont be those guys that are the 400$ “custom” websites that are basically spit out templates slightly changed. No one likes them and theyre killing the industry AND making crappy looking websites.

#4 Sometimes you will lose clients

This isnt always a bad thing. For some reason we have a temptation as freelancers to simply take what we can get. We convince ourselves that we cant charge more because our client cant afford it, when in reality sometimes they can. Dont be afraid to set the bar high. Look at it this way, if a website is absolutely vital to your client or your clients business, they will find a way to find the money needed.

But sometimes, they really won’t have the money. And in that case, it might be in your best interest to say no, or for them to say no. Trust me, I’ve been there, someone comes to you for a favor, they’ve only got a couple hundred bucks but need a website. And I know, I know, I know how hard it is to say no. But understand that your time is valuable, and its far better I think to get one big project a month, then four really small paying projects. You’ll be spread out way thin, rather than taking your time and working hard on one main project.

So yeah, sometimes a client or two may walk away because you quote too much. If they’re smart and you’re good at what you do, hopefully they’ll come back after finding out your prices are about the same as others. Or they might go for those cheap ‘custom’ websites google advertises. And in that case, like with all things, they’ll get what they pay for.

#5 Dont be a sucker

Dont let yourself be taken advantage of…this is especially true of friends. Once you learn how to do something that no one else does, you suddenly become a very handy commodity. Heres the analogy I think of when deciding how to charge and who to charge. If you’re friend owned a car repair shop, and you brought in your car and needed brakes replaced, you wouldnt expect it to be done for free. Same goes for a restuarant, or a doctor, etc. For some reason, the same isnt true in peoples mind when it comes to design services. I think its viewed more as a hobby and not a real profession. I dont know why the industry is viewed like this, but it is. Don’t let your friends take advantage of you, and they will try if they havent already. I know its hard to say no, but you might just have to mention you’re too busy to do anything like that right now.

#6 Call yourself what you are

Often nowadays, the word freelance can have a bad connotation and leaves a fowl taste. So people have taken to comping up with any and every title for themselves they can think of. Consultant, guru, consultant, etc. Heres an interesting article about confidence and knowing you’re worth: You may already be an expert….

#7 Let your work speak

Above all though, you’re work has to back your mouth (and your invoice) up. If you’re works good, people will know about it..and fast. If a client likes your work. THEY WILL tell someone else about you. I’ve mentioned alot about not undercutting yourself or undercharging, but thats all assuming you know what you’re doing. You cant charge 75$ an hour if you dont provide 75$ worth of work and skill. The work is always king, boss, supreme, etc.

A list of useful articles and blogs:

First steps to graphic design pricing

4 steps to web design pricing

Design pricing and when to talk money

Selling your brain

graphic design pricing: a list of resources

Setting your rates – has some excellent formulas for setting your prices

How much a web design costs – shows actual numbers