My #1 rule of freelancing: Don’t work for cheap clients.
If an inquiry from a potential client begins with “How much for a website / brochure / flyer?” Tread carefully. That’s often a sign that the client is trying to get a lot for a little. Trust me when I say that’s a losing proposition. Your “word-of-mouth” marketing will be “S/he’s a cheap designer.” They will only send you clients that are also looking for the hook-up. It can often turn into more trouble than the entire thing is worth.
Cheap does not mean small budget
Cheap is not the same thing as small-budget. Small budget clients can be good. These clients are willing to pay you, they just can’t pay you for everything they want right now. Often times you can work out a long-term, pay-as-they-need-you arrangement. They may turn into a steady client. And they may refer you to other clients who also respect what you do and will pay you accordingly.
Cheap clients, however, are out to get the most work they can for the least amount of money.
Educating clients or “How to tell if your client is cheap or just inexperienced.”
For some clients, “cheap” is really a case of being inexperienced with shopping for creative or technical services. Only you can decide whether client education is something you want to do.
Educating clients is not always a bad thing. In fact, it can be a powerful branding tool. Knowledge is power, as the saying goes. And empowering your client turns out to be a pretty good way to build trust.
But sometimes, even after you’ve explained why you charge what you charge, and how much work it takes to complete it, a client will say “But Websites-R-Us will give me a web site for $4.95 per month.” Or “My neighbor’s nephew only charged him $200, why are you charging $3,000?” That’s when you know that price — not quality, not skill, not design, not experience — is the motivating factor. Just say “Well, if that’s more inline with your budget, that may be the better option for you.”
Weeding out cheap clients
Ask for how much you want and see if they clutch the pearls
This is a strategy I first noticed on Forty Media’s website. They price by the project, and list ballpark figures on their web site. The greedy bastard in me recoils at such an idea. I mean, what if they were willing to pay more? But it can potentially weed out clients who are looking for the hookup. And it may also allay the fears of companies that don’t want to feel like they’re being overcharged.
Ask for their budget and tell them what you can do for that budget
Once they let you know what they’re working with, you can create a menu of choices and add-ons. They get a web site. You make some cash, and you open the door to future work.
Also remember: there is a client for every price point. If you present your rate and price and they balk, don’t lower your rate. Offer to do less work, or be willing to lose the business. But do take it under advisement just in case you really are overcharging for your skills, experience, or market. Knowing your worth and knowing what’s fair are the keys to a successful business.
Or just skip the client process entirely by subcontracting for other web firms. Where to find them? Try contacting these firms directly or cruise niche gig boards like 37Signals, AuthenticJobs or JobsandGigs. Don’t bother with Craigslist (at least in most markets). Instead go where serious companies are looking for serious contractors.
Agree? Disagree? Speak your piece in the comments.
But Tiffany, all businesses are trying to get the most work possible for the least amount of money. So you can’t blame clients for shopping around. I think you hit the nail on the head when you talked about educating the clients. It’s the quickest way to turn cheap clients into generous clients. Some client truly believe that websites are simple, and no one wants to feel like they’re getting ripped off. I think the key is to make sure that the client knows exactly what they are getting. Make an itemized contract that covers what you expect from them, (content, images, retainer fees, etc), but most importantly map out what they will be receiving from you (estimated # of hours spent, cost/hour, graphic design, standards compliance , maintenance, etc).
Related Question:
Do you take into consideration the site’s potential traffic? Would you charge less for a site that gets a lot more hits, banking on the fact that more hits = more clients?
Not true. Good businesses — or rather those that make good clients — are looking for the best price-to-quality ratio. They understand that it’s usually worth it to pay more to get it done right the first time.
I don’t blame clients for shopping around. But I blame clients who do not do their homework and find out what technical and creative services cost before they start asking people to do work for them. And I blame clients who see Register.com’s $12.95 per month do-it-yourself plan and expect that every web designer is supposed to build a complete web site — and update it — for $150. Or worse still, the ones who want a MySpace clone in two weeks for $1200. And then will try to talk you down from there.
Again, I’m talking about cheap clients: those who want way more than what they’re willing to pay because they don’t value your skills. I’m not talking about those small-budget clients who would pay you if they could.
To answer your other question: No, I don’t take into consideration a site’s potential traffic. I charge based on how much time and effort I will need to put into the project in question.
Most web sites do not have massive audiences that will want their own web site and also want me to develop it. To undercut my project price based on a “maybe” doesn’t make much sense, in my opinion.
The “Price to Quality Ratio” assumes that the client can identify quality. Is it realistic to expect a client to be able to differentiate between your $3000 custom design and a $500 out of box template? At the end of the day it’s about receiving what is perceived to be the best quality. That’s why I believe it comes down to educating your clients. All clients have the potentially good clients, the key is how you package your services.
“Is it realistic to expect a client to be able to differentiate between your $3000 custom design and a $500 out of box template?”
Yes, it absolutely is. And if they are okay with a $500 out of the box template, then they are probably not in the market for my skills.
To oversimplify things: think Toyota versus Lexus. Similar functionality, different driving experiences. Similar exteriors. Different details. Whether or not you think the Lexus is worth the extra money depends very much on what your needs and priorities are.