Far beyond increasing your revenue. Understand why increasing your price can add value to your work!
One of the most sensitive issues in the freelance market is the pricing of services, as many professionals still have doubts about how to get at the ideal price . So today, let’s talk about something important in this sense: why charge more for your services!
The idea of this post is to show you some reasons to increase the price of your services, especially when the goal is to value your name and your own work. That is, we will bring reasons that indicate that you can increase your price without any pain in consciousness.
And then? Are you curious to know more about what we are going to talk about? Check out the 6 tips we have prepared for you to understand why we charge more for your services.
1. Improve your bargaining power
The first reason we will list you to understand why charging more for your services is something very simple: a slightly higher price always helps in improving your bargaining power. After all, every good customer always cries a little bit, does not he?
So keep in mind that first and foremost you need to put a margin on your price so that you can show the customer that you can trade a value that is good for him too. Understood? In fact, this dynamic of trading is very good for you to understand if your price is right or not.
After all, if a good part of your customers are accepting your price without complaining or wanting to negotiate, it is because you are not charging enough. Think about it!
2. Helps deal with the “no”
Still from the perspective of receiving “no” as a response to your proposals, raising your price consciously will help you deal with these responses in a much lighter and calmer way.
Our proposal is that you have a new look at situations like this: when we receive a no, there is an indication that the price we put is not even below the market.
It may seem a bit confusing, but it will give you more peace of mind so you can have less anxiety and deal with these negative responses in a healthy way without getting guilty.
Many people think they are sinning at something when they receive a no. But in reality this is not quite what is happening, so raising the price helps to deal with these situations more quietly.
3. Value your working hours
Understand that when a client hires his services for a certain time, he is not only hiring a few hours of work, which is the time you actually spend for your project.
In addition to this time of dedication, there are many other costs and factors that need to be included in your pricing, such as: the amount spent on electricity, internet costs, meals you make while working, whether you rent a space or use a coworking, there is also the monthly fee, among other things.
For those who work with travel, it is also necessary to put the costs of the trips that are carried out. Keep in mind that you also need to provide maintenance or change of work equipment from time to time. It’s important not to forget that!
You could tell that your “hour” of work needs to be valued financially, right? That’s a good reason why you charge more for your services.
4. Adapt your service to market dynamics
Another very important point is that it must increasingly include its price in the current market dynamics. Explaining better, we live in a reality where, with each passing day, the price of products and services only increases.
That is, every day, the cost of living becomes more expensive, the price of food increases, the value of service fees also increases, not counting the inflation that is always there influencing things to get a little more difficult.
So we must take precautions and also take into account this market dynamics. Therefore, it is important to at least correct your price annually according to the value of inflation or some other rate that makes sense.
Keep in mind that working this way is something that needs to be well analyzed, the adjustments need to be consistent. It is not very feasible to increase the price every time some product in the supermarket increases the price, for example. So, study well before you make any changes based on that.
5. Increases motivation to do a good job
The questioning of why charging more expensive may also have a very simple and obvious answer: increase your motivation while doing your job. How many times have you gotten caught up by noticing that you are unmotivated because you are not being paid for the service?
Well then, you have no better argument than to create a motivation to do a job well done than to raise your price, right? That way, everyone only has to win, both you and your client.
The logic is simple: when we work more motivated, the tendency is for our deliveries to be made with much more attention and care, which will leave the customer satisfied and more willing to contract their services, as well as indicate to other consumers.
6. Helps you perform tests on pricing
Lastly, we bring here that increasing the price also helps to find the right pricing for your services. This is one of the easiest ways to do price-related testing for your job. Obviously we are talking about testing with a certain base.
This can be in relation to the various components that form the final price: the hours worked, the costs of maintaining your project, the complexity of the work, among other things.
For example, if your price is comprised of the value of your hours worked plus a monthly maintenance fee for your equipment, you can test by increasing only the value of the hours worked, or else add an extra value to that maintenance fee, other components that make up its final value.
That way, it will be possible to test which of these components make more sense to be scrambled than others, okay? Therefore, adjusting the price in several ways is a good way to test the optimal price for your services.
We hope you have found good reasons to answer the question: why charge more for my services. This will all help strengthen the freelance market by being beneficial to everyone.