The Conundrum of Package Pricing
Yesterday, a prospect emailed me and asked, “Can you send me your pricing package?”
I’ve been asked this question before. The prospect might ask for a ‘rate sheet’, or ‘ballpark fees’, or use any number of expressions which all translate to, “How much is this gonna cost me?”
I know it goes against the grain a bit, but my prices are in my head. I’ve always meant to create a rate sheet, but it’s never gotten done. After more than four years and hundreds of projects, I can usually determine the basics in the first few minutes of a conversation with the prospect; the rest is mostly window dressing and relationship building. I suppose I ‘customize’ the fees for each project. As those of you with experience already know, this takes practice.
Whenever I’ve attempted to provide set prices or bundled fees, it hasn’t worked out very well. So I stopped doing it. There are simply too many variables with each project.
So, how to answer this question gracefully and keep the client on the hook?
First, don’t panic! The client may pressure you to spout rates on the spot. Say something like, “Let’s talk more about your needs, so I can quote my best fees.” Divert the prospect, get more information and offer a written quote to be delivered the next day, or within a time period that works for you. (And then don’t forget to do it!)
This not only gives you time and silence to think clearly about project parameters, but it is a professional approach. The client who insists on knowing the cost upfront…without any discussion of needs…who ‘doesn’t have time’ to answer your questions… is not the client for you. Walk away.
This is not to say you shouldn’t develop a price schedule if you’re comfortable with it. Perhaps also consider bundling together services to ‘upsell’ the client. For example, customers requesting website copy often want articles too. The customer requesting a sales letter may also need a series of autoresponders. And so forth.
Create package pricing by bundling together services that logically go together. Consider discounting the package price slightly to encourage sales.
Whatever you decide to do, always do what works for you…based on your current skills, your market, and your future plans for growth. Certainly you don’t want to offer packages that include services you’re not familiar with, or quote rates that make you uncomfortable for any reason. You want a happy customer, but not at your own expense!
Do you use a fee schedule, or are you more like me, keeping rates in your head and customizing the cost for each project?
15 Responses to “The Conundrum of Package Pricing”
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Very true. I recently lost a client because I was trying to quote a price and couldn’t decide on it for very long. I am new to freelancing so thanks for the help.
Thanks, Victoria. I offer flat fees, but have a client who wants to retain my services for on-going work. In future posts, could you address the best way to figure that out?
Nichole, great idea. I’ll do that sometime this week. I’ve been asked about this before, and it’s not as complicated as it seems
Good for you if you’ve found a client who wants to pay on retainer!
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Vaishnavi, I’m happy I could help. Sorry to hear you lost your client because of this, but it happens. In the future, if you’re ’stuck’ for what to do, write to me and I’ll help you right away. One lost client happens sometimes. Two lost clients should never happen!
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This is incredible… have you seen my buddy Pete’s new book?
http://thewealthyfreelancer.com
For anyone new to or reentering the “Freelance” world, I would strongly recommend you read this one ASAP!
Running a small business with my wife (who is also a serial entrepreneur!) we have found that the more we provide education, information and service to our clients and potential clients, the issue of “cost” and “fees” is much less of an discussion.
Oh, and we ALWAYS talk about benefits…while downplaying the features. Seems to work for us!
Like you, Victoria, my fees are in my head. Well, actually they’re in a Word doc, but it’s fo my eyes only & is really just to give me something to work from I generally customise my fees to suit the client after I’ve had a discussion or a written brief from them.
Sadly, too many clients seem to judge only on cost, & even while they’re waiting for my quote, may have accepted a cheaper one from someone else.
I’ve always had a hard time setting prices for my projects. Being a young and fairly irresponsible person hindered my success as I was just starting out, and not having any real idea what to charge was a large part of my problem. I would get loaded down with projects that had strict deadlines, and I inadvertently neglected projects that were not so strict so that I could make the deadlines…all the while I was not making enough to make ends meet.
I’ve learned a lot since I first started out, and I’m learning more each day. I still don’t always know what to charge, but I’m hoping practice makes perfect.
Well, Brandon, no doubt you’ve read some of the posts here about pricing. Hope they were useful. This is an issue that constantly causes concern for copywriters, and rightly so. Don’t be shy about asking questions if you still need help!
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Yes, cost is always paramount. It’s just how we humans are. That’s why I don’t like charging hourly. It makes people check their watches and compare how much time it physically takes to complete a project. To me, hourly rates defeat the purpose of working as a freelancer. If I want to be paid hourly and have someone standing over me tapping his watch, I’ll go back to captive employment. NOT.
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You’ve got it, Jason. Whenever a client brings up cost, or opens an email or phone conversation with something like, “I need web copy. How much do you charge?”, I always drive the conversation back to benefits and overall value, while pointing out cases where my work made a measurable difference in a client’s bottom line. Sometimes, they agree to work with me and forget to even go back to asking about cost!
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And by the way, I highly recommend Pete Savage’s book as well. It’s getting rave reviews and will definitely go down as one of the top copywriting books of the 21st century!
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Thanks Victoria – am loving your posts.
I am based in Greece where people/businesses are still wary of using freelancers and pricing usually ‘pays’ for it. I also use a per-project approach and absolutely agree on the need to fend off those insistent, ‘tell me now’ types as there is also often a lot hidden behind the initial description of the project. I have a general break-down that I tailor-suit to each client (because many are also referrals and unfortunately, at least here in the Mediterranean, people are not always discreet or respecting of another’s right to non-disclosure) on my own stationery, once again personalized so they also immediately have the feeling this is a professional service aiming at top-notch quality. This also gives the idea of entering into a ‘contract’. How did I arrive at all this? I went through the same agonizing learning-curves our fellow-poster Brandon notes.
One question though … does anyone ask for a percentage up front/down payment or full payment on delivery?
Continued successes to all,
Sylva.
Thanks Victoria – great advice. My concern these days is in determining the right rates to charge. There are so many people out there paying so little for copy…I don’t want to sell myself short, but don’t want to price myself out either. Would love an article about going rates for different services (or at least just an acceptable range).
Cara, wouldn’t we all! A few weeks back, we discussed pricing at length. The overall conclusion is there are too many variables: what the market will bear, what types of companies make up your market, your skill level, your experience, your subject knowledge, the client’s needs, the client’s budget, how much handholding you might have to do, how much research….Yikes! So ‘going rates’ vary wildly from writer to writer and project to project, and even geographically. (People pay more for an article in NYC than Albequerque.) (Just a humorous example.)
There are numerous pricing guides on the market. Do some research and pick one that seems right for you (Steve Slaunwhite has a good one. Also Chris Marlow.) But keep in mind no pricing guide is foolproof or ‘exactly’ right for you.
Pricing is something we all sort of learn by the seat of our pants
Overall I can tell you that there is a big issue with low pricing and high expectations. You’re not alone in noticing this. How much you’re worth, or believe you’re worth, plays into the equation as well. This comes about through knowledge, expertise, customer feedback and results.
So what I am saying is, time will tell…but in the meantime, you’ve got to charge something, right?
Feel free to contact me privately to discuss this in depth. I can help you determine if your pricing is in the right ballpark.
Sylva, I love learning about how the copywriting business differs in Greece! Thanks so much for sharing. It sounds like trial and error have been your constant teachers, and you’ve finally got it right. And thanks for reading too!
I definitely teach my copywriting students to ask for an initial deposit. There are several reasons why, including:
1) It is more professional and usually expected by the client.
2) The client feels more serious about the commitment (and often, this works for the writer too!)
3) If the client skips out on payment later (let’s hope not!), all is not lost
4) A deposit oftens makes it easier for the client to afford the full price of the project. Sort of like a payment plan.
For small projects, let’s say under $100, 50% down and 50% upon completion is acceptable. For larger projects that are more costly or will take several weeks to complete, you may want to create an arrangement such as 25% down, 25% paid twice on specific dates during project completion, and the final 25% upon completion and the client’s satisfaction.
Generally speaking, unless I know the client well, I insist that the payment schedule be adhered to for the work to progress as promised.
You may be interested in purchasing my report titled Sign Here! Contracts, Forms and Agreements to Help You Build a Solid Freelance Writing Business. It’s available, along with other free reports, right here on the blog under the tab, “Valuable Reports.”
How else can I help you, Sylva? Anyone else have questions along these lines?