We have taken up quite some interesting topics and discussed much on freelance web designing. Let’s discuss the most crucial factor of freelancing, which is the price structure. Basically there are two types of price structure.
- Fixed Rate Pricing.
- Hourly Rate Pricing.
This post deals with pros and cons of fixed rate pricing while the next post details about hourly rate pricing. Budding freelancers are highly confused about what kind of pricing structure they should choose to monetize their service. They simply don’t know how much to pay themselves and more importantly, what kind of pricing they should apply to themselves.
Well, this post along with the next two posts will clear all the doubt about pricing. It will make you understand the pros and cons of fixed rate pricing for each structure. Hope you could settle upon your decision and start making money with freelancing.
Let’s get started.
Fixed Rate Pricing
As the name implies, a fixed rate pricing project is a one where the designers fix their price beforehand as per the project requirements. This pros and cons of fixed rate pricing is chosen before the designer gets down to work. The client and the designer mutually agree on a project cost and payment is completely independent of the time that the designer will take to complete the project. But it is highly preferable to set a deadline for yourself to showcase your professionalism and it is also appreciated from a client’s point of view. They’d not like to wait 1 month.
It’s as simple as that! You see your client’s demand, analyze it, and understand what you’ll have to do to complete your project. You now tell your client what you’ll have to do, how much time would take to complete the project and finally how much you will charge for your work. Negotiate the deadline and the pricing with the client. Once the client agrees start working.
Lets discuss the pros and cons of fixed rate pricing.
Here are some of the pros of fixed rate pricing in freelance web designing.
A. Since the clients know how much they will have to give and the freelancer know what product he/she’ll have to give, there’s a minimal chance of any future complications. Both the parties are completely aware of what they’ll to give beforehand. This avoids last minute squabbles and any kind of legal issues later.
B. Designers’ with efficient time saving methods and tricks won’t be tagged with low cost, If I can complete a task within 5 hours with my tricks, I can charge him more, which is not possible in hourly rate pricing, since in that case, you’ll be paid only for your 5 hours. So your tricks won’t bring you any money with fixed web design pricing.
C. It’s easy to determine how many projects per month are needed to be completed to determine profits or to handle budgets.
D. You set the price for your hard work. With fixed rate pricing, you are demanding what you think you deserve. You have the power of estimation. You can determine your own time and the according price for your service. You have the maximum control over the clients in this case. But this benefit can also backfire as explained in the first point of cons.
E. This is the biggest benefit of fixed web design pricing. Let’s say you charge $1000 for installing a custom theme design. When you start off freelancing, you’d take 10 hours to do your first job. When you take up your second job, it may take you 8 hours. Gradually, as you do the same amount of work again and again, your time requirement decreases. Hence, with fixed rate pricing you slowly start saving time, which you can efficiently utilize later.
Below are some reasons why you should not charge with fixed rates.
- As explained above, in fixed rate pricing, you’ll have to anticipate your deadline before getting started with the work. But be sure that you are correct. If you anticipate wrong, I bet you’re screwed. Your client may take you to court for this. Such kinds of problems take place in cases of larger projects where you need to do a lot of work.
- Many a times, after you’ve submitted your final product, your client may ask you to perform certain changes and edits which will definitely take up your extra time and effort. Since your client has already paid you, it is very unlikely that he/she will pay you again for these changes. But, if you think that the required changes will take time, go ahead and charge your client.
- It is much more difficult to estimate the price of a project before completing it. Hence, you may underestimate your work and may get underpaid.
- Payment does not come at regular intervals which may not be suitable for all types of lifestyles.
- Many a times at fixed rate pricing, you are paid 50% in advance and the rest 50% comes once you submit your product. But there are times when client disappears or runs off after taking your product.
Fixed rate pricing has its own pros and cons. But you cannot always use this pricing structure for all the projects. Check out the next post on Hourly rate pricing and find out its pros and cons.
If you could think of any other pros and cons of fixed rate pricing, do mention along with your suggestions via comments.
If you are looking for a step by step process to start your own freelance web design, you can visit our Complete guide to become freelance web designer to reach near targeted visitors. Please feel free to leave any comment you have in your mind.