first off, there is no restriction to what you can acquire, in contrast to normal business. In case you’re getting customary work, you can set the hours, settle on the customers you work for, and set your own rates.
Be that as it may, setting the costs for the various positions you are doing can end up being quite possibly the most difficult parts of Freelancing. Greater costs could make you become less serious and lose business to others offering similar types of assistance for a lesser sum. Then again, set excessively low of a cost, and you will wind up depreciating your work.
Anyway, what to do then, at that point in case you’re scaling, making new acquiring records as time passes yet come up short on a viable component that assists you with showing up at an ideal hourly rate that you ought to charge to make a benefit subsequent to considering every one of the expenses?
When you see the black and white numbers, it’s easy to think that you’ve got to charge your clients more. But, you’ve got to go about raising your freelance rates the right way. You can’t just send invoices with higher rates and expect everyone to pay up.
You need to inform your clients of the change well in advance. And, you may have to explain to your clients not only why you’re charging them more, but how it benefits them.
Even when you’ve given your clients plenty of notice and make a compelling argument why your rate increase is justified, you’ll also need to prepare for pushback. And you need to understand that there is a chance you will lose some clients.
Give Them Plenty of Time
The single most important thing you can do to help successfully raise your freelance rates is to give your clients plenty of advance notice. No one likes surprise rate increases. Even the cable company informs you months in advance that your rates are going up (again).
Make sure the advance notice is in writing and easy to find. While you can put the information on an invoice, make sure you use a large enough font that stands out on an otherwise routine invoice. Consider highlighting the notification, so it’s hard to ignore.
Also, send a separate email notification to help ensure people receive the notice. Use something obvious in the subject line like “Rate Increase Notification” or “Change in Rates,” to get your client’s attention.
While there’s no magic formula for how long “advance notice” is, two to three months is sufficient time to notify your existing clients and allow them time to figure out what they want to do. It also gives you plenty of time to drum up new business if a client leaves.
Same Time Next Year
Inflation isn’t going anywhere, and neither are your expenses. Make the time to regularly review your expenses and compare that to the rates you are charging. At that time, you may determine that a rate increase is in order.
Long-term or repeat clients are rare in the freelance world. But if you do have some, a regular review and notification about rate changes will help “train” your client to the likelihood that it will happen. This makes it less likely they will be shocked or upset when an increase happens.
Ideally, when you take on a new client, let them know that you periodically reassess your rates, usually at the end of the calendar (or fiscal) year, or on their anniversary. This helps prepare them for the possibility of a rate increase down the line.
Don’t Increase New Client Rates Too Soon
On that same note, don’t raise your rates on new clients too soon. For example, if you reassess rates at the end of every calendar year, you may want to skip raising the rate on that new client you just started within October.
While it makes your life easier, that’s not the case for the client. They just started working with you and may feel blindsided, even if you did warn them upfront. Plus, they haven’t worked with you very long. How do they know you’re worth this increase?
Take the time to work with your new client and prove your value. It may mean missing out on this year’s rate increase. But, in the future, you’ll probably have an easier time raising your rate since this client knows you are worth every penny.