One of the things you need to figure out when making agreements with a prospective client is the service fee. How much should you charge your client? This is an issue among beginners, who have little idea of the true value of their work. Often, these people underprice their services and ending up shortchanged.
Here is the quick guide
First, calculate the expenses you will incur in handling the job—internet, phone usage, and so on.
Second, assign a service fee based on how other service providers’ charges for similar services.
If you will work on an hourly-based contract, divide the estimated cost of the project by the number of hours it takes to finish it. Again, compare this hourly fee with the market mean.
How much can your client pay?
Different types of clients are looking for contractors on numerous job sites on the internet. They work on different budgets. Hence, one can be generous, and another can be stingy. You stumbled upon a place where not everyone is willing to pay the same amount of money.
In some instances, you may have to adjust your price a bit so that your client can afford your services. However, be careful not to underprice your services. If you think a client is undervaluing your work, you probably should not be working for him.
How much do other similar contractors charge?
Take a look at the quotes of other contractors whose work is similar to yours. You will come up with a range of fees. Now, your goal should be to price your equivalent services anywhere within that range.
For beginners, going to the bottom of that range is a good idea to attract more clients. Established and advanced service providers have all the freedom to choose a service cost somewhere in the high edge of the spectrum.
Can you negotiate with the client?
Negotiations are integral in any work agreement. Before you fix the contract, make sure you and the client are comfortable with the arranged fees. It’s essential that you are compensated for what your work is worth, but it’s equally important that the client sees the respective value for the price you assign on your job. Sometimes you have to be firm against cunning clients, who like more work for less pay.
Watch out for ugly signs of undervaluing
Early signs include the client’s ridiculously low budget. Clients with extremely low budgets often target beginners, who often are forced to work on the task just to gain experience. Don’t work for these clients if you are established enough. If you have extensive portfolio already, there is no need to please clients who want work done at unreasonably meager cost. It’s not fair to your other clients who pay the average price. It’s certainly not fair to you either.