Ask FreelanceSwitch #18: Job Estimating Tips, Pricing Quotes

In this issue of Ask FreelanceSwitch, Travis King and Thursday Bram look at estimating and how to start charging for your work.

Ask FreelanceSwitch is a regular column here that allows us to help beginners get a grip on freelancing. If you have a question about freelancing that you want answered, send an email to askfreelanceswitch@gmail.com.

Power Up!

Question #1

As I’ve learned from you guys, I always submit an estimate, contract, and deposit request before a project can begin.

However, many times my estimates have been way, way too low for the actual amount of time I put into the project. Being as young as I am, I don’t feel like I should charge a whole heck of a lot for my services, but when I mention how much more time I’ve been spending on the website, clients point me back to the estimate. Most of the time this leads me to just accepting whatever the estimate says, even if I spend two or three times as much time on the project.

Any advice?

-Quinn

Thursday: First of all, a job estimate is just that — if you work more hours than you’ve estimated, get paid for them. You can write the fact that you expect to be paid for the actual amount of time you’ve worked into your estimate. Some boiler plate at the bottom can make sure that you can still bill for the amount of time you’ve actually worked. That said, if you know that your job estimating regularly comes up too few hours short, make a practice of at least doubling the number of hours you think a given project will take you. If you do finish a project faster than that, it’s an opportunity to wow a client with how hard you work. Everybody likes the freelancer that comes in under budget.

Additionally, age shouldn’t factor into your pricing. Charge by experience, rather than age. Most clients won’t care how old you are if you’ve got a great portfolio and you can show off your skills. However, it’s not unusual for a client to take advantage of a younger freelancer by trying to drive down a price or refusing to pay. You need to be confident in yourself and in your prices, or you’re offering a client the chance to get away with pushing you around.

Travis: It’s time for you to get serious about your business Quinn. If you can do the job and deliver what the client wants then don’t feel bad about charging for it. When you constantly underestimate, you’re basically giving it away for free.

As it happens, I have some good advice to give from another famous Quinn. That’s right, I’m talking about Dr. Quinn, Medicine Woman.

Let me set the stage for you here: Dr. Quinn is complaining to her elderly mother on why she doesn’t take her seriously and accept her for what she is. Her mother’s reply is straight to the point:

And what are you? You’re an unmarried woman, trying to raise three children, in a shack, in the middle of nowhere… and offering your medical services to a bunch of back-woodsman, who pay you in potatoes and in chickens.

Powerful stuff. Until you stop designing websites for potatoes, you’ll never be taken seriously.

Also, I think Dr. Quinn and Walker Texas Ranger would have made a good couple.

Question #2

How does one go about to having a pricing quote, or facing “clients” that you have built a good relationship with, and give them this halting stop that, “hey, it’s going to cost you this time around.”

I know it’s also a personal problem of mine, because I get excited for shoots and projects, but I believe it is time to draw that line between friendship and business.

- Khoren

Thursday: It’s always tough to turn a non-paying project into a paying project. There’s a chance that you’ll lose people you’ve worked with in the past and, honestly, it’s a good chance. When someone gets used to getting something for free, they aren’t interested in paying for it. It’s possible to lay some groundwork ahead of time — letting someone know that the first shoot might be free but you’ll be charging for the next one. But if you’re already past that point, it gets a lot harder.

There are a couple of options: if you’ve got multiple people that you work with, it may make sense to send out a letter to each of them, emphasizing that you enjoy working with them, but that you do have to shift into making a living. Set out the rates that they can expect in the future and mail it. With anyone that you’re concerned about keeping as a friend (over keeping them as a client), it’s probably better to sit them down and have an honest discussion about the fact that you do have to earn money. You may not be on their radar for work afterward, but you can still keep your connection strong.

I know the feeling about getting excited about projects, too: I’ll meet someone, talk through a great project and be raring to go, even if they can’t pay me immediately. To keep myself grounded, I’ve made a practice of writing up pricing quotes  for time and expenses for the project — along with an explanation of what I’ll get out of it. If there’s not enough benefit, I’ll send along the estimates with a dollar amount to the person in charge of the project. It can get us started talking about what other ways I can get a benefit out of the project (like payment in trade), so I don’t wind up in a bad situation.

Travis: Here’s a rule to live by, Khoren – Never get more excited about a project than the client. And here’s another rule – If the invitation says semi–formal, that still means you have to wear pants.

I think I’d follow Thursday’s advice as well. Send each of your current freebie clients a nice email saying how much you’ve enjoyed working on their projects and how you’re going to be officially launching your business. And that will mean charging for it.

Here’s an example of a similar letter I sent out to a client when I changed my rates:

Dear Client,

It’s certainly been a busy year and I’ve very much enjoyed working with you on your project. I’ve just been letting clients know that there is going to be rate change for the upcoming year.

I look forward to helping you get increasing value out of your site in the upcoming year.

By the way, when you see your daughter, please apologize for me again. I continue to have troubles with the ambiguity of semi-formal.

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