In this episode we discuss all things pricing! How do you decide upon your rate? How and when should you raise your prices? How do you position yourself as valuable for potential clients. Should you ever design for free or for exposure? There’s a ton covered in this episode, and you can listen in below:
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Meet Your Hosts
The Honest Designers Show started when our founder Tom found he was regularly chatting and sharing tips with top designers; Ian Barnard, Lisa Glanz and Dustin Lee. We soon organised a weekly call where we would help each other with areas we were struggling with and try to give each other actionable feedback. Soon we realised that the collective experience of the group was proving so valuable for each of us, that we thought ‘why not share these conversations with the world?’.
And so, The Honest Designers Show was born! This podcast is an insight into how to succeed in the creative industry, as well as giving you a totally transparent, under the hood look at some of the tougher, less glamorous hurdles to overcome! We also tend to get a little goofy along the way, so this is a chance to get to know each of us a little better :). We’ve loved recording this show for you, and we hope that you find value and enjoyment in listening to it.
SHOW NOTES
In this episode we discuss how to price yourself as a designer. We also look at if you should ever take on free work, and the taboos around designing for ‘exposure’.
[0.55] Tom’s various experiences with pricing (from both sides of the coin)
[1.20] Lisa’s struggles with pricing herself starting out, and how your pricing mindset changes over time
[2.50] Lisa’s rule of thumb for how to increase her prices
[3.30] Pricing yourself based on experience, not just your time
[4.20] Dustin feeling disparaged by pricing early on
[5.15] Why you can charge more because of positioning
[6.15] It’s OK not to be paid right now, what you think you should be eventually
[7.00] Designing for exposure, or for ‘free’
[7.30] When it is OK to design for free
[8.00] A good example of free work in action
[8.30] The fake promise of exposure
[10.00] Chase Jarvis’s lesson on pricing
[11.00] Ian increasing his pricing, and not hearing back!
[11.30] Dustin’s experience hiring a designer, and paying them fairly
[12.15] Tom’s tip for increasing prices over time via referrals and over-delivering
[13.00] Why confidence matters with pricing
[13.30] Why it’s tougher pricing yourself as a designer, as opposed to more traditional jobs
[14.00] Digging into the importance of confidence more (and looking at supply and demand)
[15.15] The power balance in pricing negotiations
[16.00] Why the quality of your clients matters
[17.00] An example of a common client type
[18.15] Start projecting what you want in the industry, and it slowly starts to happen
[18.50] Why you should be hearing ‘that’s too much’
[19.40] Understanding that not all clients look for the lowest price
[20.40] A great question to ask first-time clients
[21.15] Designing for designing for equity
[21.30] Designing for shaving cream!?!
[23.00] Why equity tends to be a no-go (but why you should go with your gut).
[24.30] Why markets and price-points exist (there is a demand for them!)
[25.00] Why larger clients can come with various issues too
[25.50] Dustin’s thoughts on designing for equity (and why Ian should go for it!)
[27.00] Why initially pricing yourself feels like plucking a number from thin air
[27.50] Going outside your pricing comfort zone
[28.30] Lisa’s experience of not hiring junior designers (who were too expensive for her)
[29.15] Why you should be humble and want to work hard
[30.00] You start to get a gauge for what pricing works for you
[30.45] Finding your pricing sweet spot (Tom’s examples of online products)
[32.00] The importance of finding your accurate hourly rate
[33.00] Don’t ignore the extra time
[34.00] Why you need to take into account sickness, and the reality of your life to find your true hourly rate
[35.50] The importance of doing the math to really understand how you’re valuing your time
[37.45] The importance of developing multiple income streams if possible
[39.00] Alleviating the pressure on yourself with pricing
[40.30] Being honest enough to ask your clients about the pricing
[41.45] Lisa’s bold job interview
[42.50] Quick fire tips on raising your prices
How you can help
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Let Us Know What You Think
We would absolutely love to know how you enjoyed this second episode. We’ll be releasing a new episode each Wednesday, and look forward to hopefully answering many of your questions on the show.
Another fantastic episode!
Pricing is always so hard when starting out and something one needs to adjust throughout their career as the workload/client number changes, style of clients or direction of specialisation.
You guys nailed it with all the scenarios…love it.
Looking forward to next week.
Thanks Justine, that means the world to us! :) Pricing is definitely tough, especially early on as you have no real benchmark to go from. I’m so glad you found this episode helpful, and best of luck with your own pricing journey!
Thank you for your show…I’m really enjoying your discussions. They are very helpful~
Thanks so much Tamaralee, I appreciate you taking the time to comment. If you have any topics you’d love us to discuss, please do let me know.
OMG! STOP SAYING “LIKE”! LIKE YOU ARE DRIVING ME LIKE CRAZY! LIKE DO YOU EVEN LIKE KNOW YOU ARE LIKE SAYING IT LIKE EVERY OTHER LIKE WORD? FOR GAWD’S LIKE SAKE! LIKE TOTALLY!
Hey Brenda, thanks for your honest feedback. We’re definitely still finding our feet, and I’ll be sure to pass this onto the gang. However, despite all the ‘likes’ I do hope you’re able to find some useful info in the show :).
You can talk all you want about “what you think you’re worth” and “remember to charge for your experience,” etc., but once your business is established, there is only one true indication to raise or lower your prices. (And this pretty much works for any type of business.) If you have too much work to handle, then raise your rates. If you don’t have enough work to keep busy or make a living, then lower your rates. It’s really pretty simple.
Hey Rick, I couldn’t agree more! That’s definitely one of the most effective way to gauge when you should increase your prices. However, I don’t necessarily think you should lower them just because the work isn’t there. There’s lots of other things you can do to attract work at your current rate, otherwise it’d be a pricing race to the bottom in the quieter periods inherent in most freelancer’s careers. But yes you’re right, it comes down to supply and demand, as with any business. As I mentioned on the podcast, there are those designers who get booked up for months in advance, and whilst this is a clear indication that they’re in demand, it’s also probably a sign they could potentially raise their prices.
Is there a way I can download these podcasts? I don’t have i tunes and want to listen to them offline.
Pl. Check the first option under the last of the 3 tabs, Details
What “tabs”? Where?
If you look for the icon with the circle and 3 dots within it, in the player, please click that, and you’ll see a ‘download’ link :). I hope this helps guys.