What To Say To Your Low-Balling Clients
Posted September 3, 2009 in How-To, Managing Clients 60 Comments »
Last week we posted an article about how vampire clients can suck the life from your business. In that post, I got an excellent question from one of our FreelanceFolder readers in the comments.
The reader frequently had to deal with clients who “low-balled” him on projects and he wondered how to deal with a client in that situation.
If you are new to freelancing or unfamiliar with the term, “low-balling,” refers to the practice of trying to get the lowest possible price for a project. Usually a low-balled price is well below the average market rate for a particular type of work.
In this post we’ll give you four answers you can use with a client who is trying to “low-ball” you for a particular project. We’ll also gives you some techniques to help you recognize low-ball schemes and avoid them.
Four Answers For Your Low-balling Client
If you’ve ever faced a client who has tried to low-ball you on a project, then you know that it’s not much fun. Your excitement at finding a potential new client quickly fades when you discover that he or she is merely trying to take advantage of you.
Here are four things you can say to a client when you feel you are being low-balled:
- The educational approach. In this approach you assume that the client really doesn’t know that the pay they are offering is too low for the type and amount of work required. Your tactic is to inform them of the proper rate for your work and refer them to a neutral site that lists average costs or pay rates for the type of project they are requesting.
Say:“I read your offer with interest. I think that you should know that the average rate for this type of project is x. You can check site xyz to find out more information about what this type of work type of work typically cost. I’d be happy to do this project for you for x.”
- The expertise approach. This approach is particularly effective for freelancers with a lot of experience. In this approach you highlight your experience and explain why it allows you to do a better job on the project (making you worth more to the client).
Say: “Thank-you for your interest in hiring me to do your project. I’ve attached my resume. As you can see I have y years of experience in handling projects that are very similar to what you need. As a consultant for you, I would be bringing my years of experience to your project, resulting in higher quality once the project is completed. I can do your work for x.”
- The task approach. This is often used as a follow up to one of the other approaches. Clients often assume that projects are much easier to complete than they actually are. For this approach you use the strategy of listing the actual tasks that you will perform.
Say: “Thank-you for your response. The actual steps to complete your project are somewhat time-consuming. In order to do your work properly not only must I (state desired project result), but I must also complete task a, task b, and task c. As you can see, this work takes a great deal of time and effort. Therefore, I believe a fair rate for your project is x.”
- The walk-away approach. This response is typically used only when a potential client shows that they are totally unwilling to negotiate. While sometimes a client may relent on their low price if they were bluffing, be aware that this tactic usually sends a client elsewhere.
Say: “Well, I do appreciate your interest. Unfortunately, I just can’t do the project at the price that you are offering (which I believe to be substantially below market rate). I do wish you luck in finding someone who can work for that price. Be careful, though, sometimes you get what you pay for.”
Three Scams to Watch Out For
Sometimes a low-balling client tries to hide the fact that they are going to pay below market rate.
Here are three tricks that unscrupulous clients sometimes use:
- The big $$$ figure. The client using this tactic throws out a big dollar figure in hopes that the freelancer won’t notice that that big dollar figure goes with an unreasonable amount of work. Example: $1,000 pay for 1,000 original 500-word articles.
- The “free” sample. The client using this tactic advertises a “job,” but requires that only original samples be sent with the job application. The specifications for the samples are very specific. In the end it turns out that this client is only trying to get free work in the form of samples.
- The open-ended project. The client who uses this tactic constantly shifts and changes the original requirements without ever increasing the pay. A savvy freelancer can get around this problem by using a well-written contract and limiting the number of revision requests.
A Final Word
There are many legitimate opportunities available for freelancers who carefully examine the projects that are presented to them.
Fortunately, the examples given in this post are the exception rather than the rule. Many clients will not attempt to low-ball you, and there is a lot of good work out there.
So, How do you answer a “low-balling” client? What freelancing offers have you investigated that have turned out to be scams?
Leave your answers in the comments.
About the author: Laura Spencer is a freelance writer from North Central Texas with over 19 years of professional business writing experience. If you liked this post, then you may also enjoy Laura’s blog about her freelance writing experiences, WritingThoughts
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60 Comments
Lexi Rodrigo
September 3rd, 2009 at 9:34 amThank you, Laura! I love that you gave the exact wording for each possible response. Sometimes, even though I am a writer, I wish I could just pull out a script from a big how-to book.
I was just trying to figure out how to tell previous clients about my new, higher rates. I want to break it to them gently, but at the same time reassure them that they’re getting their money’s worth.
These “scripts” will definitely come in handy.
Have a nice day!
Laura Spencer
September 3rd, 2009 at 9:41 amYour welcome Lexi!
Of course, these are just guidelines. People will want to tweak them for their specific situation.
Still, sometimes it helps to have something like this to look at when you are in one of these situations (which can sometimes become emotional).
Matt Keegan
September 3rd, 2009 at 10:12 amIn my experience, I never get low-balled once I announce my price. Lowballing seems to be the favorite practice of companies who frequent Elance and Guru which is why I don’t use them.
Clearly, some people do need to be educated about the going price for freelancing, particularly your own price. I’ve stood my ground in each case and either had the customer come around or walk away.
We shouldn’t be afraid to allow poor paying customers to walk. Likely, they aren’t going to be the ones you’ll want to do business with in the first place.
Laura Spencer
September 3rd, 2009 at 10:32 amThanks Matt!
You’re absolutely right when you say “We shouldn’t be afraid to allow poor paying customers to walk.”
I’m pretty upfront about my pricing too, and that does keep some of them away. However, I’ve still had to deal with my share of low ball offers.
Lorraine
September 3rd, 2009 at 11:14 amThanks for addressing a common issue–and one of the most tedious aspects of freelancing.
My clients don’t usually low-ball me. They generally ask me to price projects: If my fees are too high, they object indirectly and wait for me to counter offer.
It’s a hassle because I spend considerable time pricing projects carefully. My fees are based on an estimate of hours needed to complete the project times my hourly rate. My pricing isn’t low, but it’s fair. And since I always overdeliver, I feel it’s a bargain!
It’s usually the same clients who haggle pricing–and they are haggling more energetically during the current economic downturn. Maybe borderline “vampire clients”?
Here’s a solution that sometimes pre-empts the problem–or at least lets you lose tire-kickers: Ask the client if he has a budget for the project or can provide budgetary parameters. This lets you learn upfront whether he wants to spend $1,000 or $10,000 on copy for his website, say.
You can adjust your project description accordingly. I always write a detailed Assignment Sheet and ask the client to sign off on it before I start work. No surprises–on either side.
I agree with Matt Keegan. Ultimately, “value” is always the answer to pricing questions. And with few exceptions it’s futile attempt educating clients who don’t perceive your value.
I find time better spent on targeted self-marketing that leads to better clients who recognize the value I add to their business–and don’t hassle me about pricing.
crazywabbit
September 3rd, 2009 at 11:33 amThere is real haggling and there is clients that are regular and need a break. I think being flexible helps a lot or else they will move to other providers. There is a fine line between being suckered and being flexible so that both parties are happy.
damon
September 3rd, 2009 at 11:43 amU “I can do the project for $D”
C “How about D/2?”
U “OK you want to pay less, lets see, what would you like to cut out of the project so we can get closer to your $D/2 price?”
so far, so good
Cameron Morgan
September 3rd, 2009 at 11:57 amGreat article! Thank you for the tips!
Pertaining to the educational approach, what are some sites out there that list average rates for projects?
Michele Dortch
September 3rd, 2009 at 12:50 pmThank you for presenting four clear-cut ways to address low-ball clients. My hope is that more freelancers will read this post because if too many of us accept low-ball contracts it can devalue our talent and expertise over time.
Billy Reano
September 3rd, 2009 at 1:14 pmThanks a lot for this post! I have been just starting out doing freelancing, and I’ve had dilemmas with this. I’ll refer to this post every time this comes up. PERF!
Laura Spencer
September 3rd, 2009 at 3:21 pmGreat comments here . . .Keep them coming!
Lorraine, thanks for taking the time to share your thoughts. You’ve provided some valuable insights. If the client will give you their budget, then that information is definitely helpful.
Cameron, the sites that list average income vary depending on what it is you do. In general, look for a professional society or association in your specialty. You can also go to a site like Salary.com (www.salary.com) to get a ballpark figure for what you would earn in the corporate world.
Cameron Morgan
September 3rd, 2009 at 3:48 pmThank you so much Laura! I’m really digging FreelanceFolder a lot!
Justin Barrett
September 3rd, 2009 at 3:55 pmGreat article! There’s one other type of low-baller that wasn’t addressed, though: the “we’re a non-profit organization” low-baller. Some such firms feel that their organization’s non-profit status means that they can ask for certain types of services for free, or for a ridiculously low cost. While (thankfully) I haven’t yet had to deal with that type of low-baller, I’d love to hear any tips from others who have.
Laura Spencer
September 3rd, 2009 at 5:35 pmHi Justin!
Great addition! (And then there’s always friends and family members. . .)
BebopDesigner
September 3rd, 2009 at 7:26 pmBrilliant post! Thanks for the advice. Sometimes it’s hard and awkward to explain clients what the market rates are… Referring them to a “blue book” site is a brilliant idea.
How do you approach a situation in which a client keeps asking for an insane number of revisions, and you forgot to include this on the contract? How do you put an end to this without ending in bad terms?
Thanks for sharing!
Wong
September 3rd, 2009 at 11:18 pmI took a freelance project on January and it turned out to be a scam. They constantly change their requirement and not willing to increase the pay. It took me another month(suppose to be complete in a month) for all the discussion and extra work.
The project was finally completed, but it is not a good experience and I started to use the well written contract to prevent this issue now.
Some client willing to pay more, but they also want you to do even more than what they pay.
Rich Bailey
September 3rd, 2009 at 11:44 pmThanks for this article Laura. Extremely insightful and powerful for me as a designer. I have recently added writing to my resume as a writer for a gaming site. I also wanted to thank you in those regards because I picked up you writing book to help guide me along the way. Definately keep on doing what you do as it helps all of us out…
Robert
September 4th, 2009 at 4:24 amSome good points and suggestions Laura. There will always be people who either don’t realise the amount of effort involved in a project or who simply don’t care and just want everything for free ;) The former of these two (admittedly black and white) categories are often willing to learn and see the value once it’s explained to them.
One potential type of low-balling tactic you haven’t mentioned is the “looking for a long-term partnership” approach: A client who accepts your offer and rates but would like to “spread this out over a two-year period”. This is often accompanied by a one-sided contract whereby you can only lose out over time.
There are two options with this kind of client: Stick it out, along with the little extras that keep popping up over time, until you feel that you’ve finally taken enough money from them and then drop it OR walk away at the outset.
I certainly recommend the walk-away approach in these cases as you’ll otherwise begin to feel bogged down fairly quickly. This will never work out.
My 2c worth!
Michael S. Altus, PhD, ELS
September 4th, 2009 at 6:38 am1. Don’t expect these scripts to work all the time. As the saying goes, if you are not losing sometimes, then you are not negotiating.
2. Don’t fall for the following: “Do this project a low rate. We have plenty of more work for you soon.” Reply: “I look forward to receiving more work from you after this project is done. However, I suggest that we discuss rates for future projects as they come along. Now, back to this project….” (Laura, if you can improve this script, please post.)
Dick Carlson
September 4th, 2009 at 9:36 amIn a strange way, the people that worry me the most are the ones who accept my (admittedly) sky high rates without a peep.
If you squawk and complain, at least we have the discussion about why I charge more for what I do than a recent college grad or someone who you can only talk to via Skype in the middle of the night. Then you either decide I’m worth it, or hard-code in the dialing code for Bangalore.
But when people just blandly say “sure” I’ve found that often means I’m going to spend months and months trying to get them to pay me when I’ve completed the work. THAT’S when they start griping about how much I cost, how they could have gotten it for less, and so forth.
Just sayin’
Laura Spencer
September 4th, 2009 at 9:57 amI love the additional examples and ideas that you guys are adding!
Michael, I think that your script is fine. These are mainly guidelines of what to say. You do highlight a scammer that I’ve also been approached by, but forgot about for this post. Good point!
Dick – you make a point. Clients should have at least a few questions up front. If not about your rates, then about something else. One way that I deal with the problem of not getting paid is to require new clients to pay a portion of my fees up front. Then, if they disappear, at least I get that portion.
Julian
September 4th, 2009 at 10:17 amGreat post! This is definitely going into the “freelanceresource” section of my bookmarks! Fortunately, I haven’t had much experience with “low-ballers” except for my first project. It wasn’t a total lost though as I gained 6-months experience and quadrupled my rate since then.
Lynne Miller
September 4th, 2009 at 11:07 amNice post, Laura. Thank you for pointing out professional ways of responding to low-ball offers. I really think professional writers are much better off walking away from cheapskate clients and using their valuable time to find better-paying gigs. I also have found it pays – literally – to ask for more money upfront. Publishers and other clients often have the money in their budget – you just have to ask.
Thanks again for the good advice.
Lynne Miller
Freelance writer/editor
(718) 369-1591 or
(718) 801-5893
Richard Williams
September 4th, 2009 at 1:39 pmAs one who regularly does work for non-profits, I agree that there are some who at times try low-ball tactics. In most cases, I have found the “educational” response to be most effective in negotiating what I need so I can deliver what they need.
There have been occasions in which I “donated” a portion of my work, but only because it was an organization or event I was already supportive of. In those instances, the donated portion was clearly indicated on the invoice, and I requested a contributions receipt in return.
Susan Birk
September 4th, 2009 at 3:11 pmThis post reminds me of something else to watch out for: the potential client who asks you for a written “proposal” spelling out your creative approach for a piece, say a new brochure. I have had my ideas stolen this way. This hasn’t happened in a very long time, but if anyone asked me for a proposal, I would only do it if they agreed to pay me for it.
Genuinechris johnson
September 4th, 2009 at 5:27 pmWalk away. Don’t hesitate.
If you are generating leads with any kind of velocity (i.e. demonstrating that you know WTF you’re talking about), then you have options. And no client is scarce. honor those that are worth it, but walk away fast, without apology or regret.
Laura Spencer
September 4th, 2009 at 6:17 pmTerrific thoughts and ideas from the Freelance Folder community (as usual)!
IMHO, this input and sharing from the readers is what makes Freelance Folder one of the best freelancing blogs out there.
For example, Richard, I hadn’t really thought about nonprofits when I wrote this post – but you make a valid point.
Keep the conversation alive. . .
Diego Moreira
September 4th, 2009 at 11:35 pmGreat article! Thank you for the tips!
Al Sabado
September 5th, 2009 at 10:25 amThanks Laura and everyone here for the valuable thoughts on the matter. I just experienced low-balling from a client. But I guess, I will have to understand as well if a client cannot afford my rate. And I must learn to smile when this thing happens. :) A blessed day to all!
Susan Greene
September 5th, 2009 at 1:10 pmOne low-ball tactic that I’ve had clients use is the offer of future work. A client will request a super-low price on this first project, claiming his budget is tight, but he promises to make it up to you with lots of other bigger-budget projects down the road.
The client rarely comes through with more work, and if he does, he wants the same low-ball price, as that first project turns out to have been precedent setting.
Wayne Key
September 5th, 2009 at 6:46 pmOne marketing tactic I have seen used in the real world is to offer the non-profit client a bit of work pro-bono. Just a bit, later they will often buy your work at a reasonable rate. Attorney’s do this all the time. They give away small work to the non-profit, and then when a large project appears they do it at the going rate.
With that idea on the table, does anyone have link acess to good freelance (writing and related) contract forms that are free or quite reasonable?
As always Laura nice thoughtful post. Its nice to see another Texan from time to time..
Mike
September 7th, 2009 at 3:50 amFrom my experience with freelance clients I find that the most difficult discussions are generally regarding money. This article is really helpful and I am sure to put these strategies in to practice. Thankyou.
Luke Jones
September 9th, 2009 at 6:33 amGreat article. Unfortunately, I’m faced with a client who is wanting multiple changes at the moment without wanting to pay anything to me. They’ve been a great client to me up until now and I’m not sure what’s happened, it’s upset me quite a bit.
They’re moving house etc, so I feel that she’s trying to ‘low-ball’ me and trying to do my job!!! I fear I may have to walk away from this.
Ragtag Design
September 10th, 2009 at 8:18 pmThis is a spot-on article – great advice, Ms. Spencer (and that goes for some of the commenters, as well). Many thanks.
@Justin Barrett – having been on both sides of the non-profit situation, I have an understanding of the pressures on each. Ultimately, as a non-profit buyer, I found that (usually) those working for free or very little didn’t have a strong committment to treating the assignment as seriously or professionally as those who were paid reasonably for their work, which was understandable. My organization settled on using vendors that offered us a 10%-20% discount, and there were many who would. That worked out very well – and now as a vendor myself, I make sure to offer non-profits the same discounts I enjoyed when I was paying for services/goods as an NGO.
Finally, I *love* this relevant youtube video made by Scofield Editorial Inc. – The Vendor Client relationship – in real world situations http://www.youtube.com/watch?v=R2a8TRSgzZY
anne
September 12th, 2009 at 1:30 pmWhat to say to low-balling clients?
“No.”
If they are ignorant and couldn’t take 5 minutes to find out the going rates, then there’s no way they can run a successful business.
If they know the going rates and are purposely low-balling, they are scum.
If they know the going rates but can’t afford them, you are going to have trouble chasing down their payments.
There are lots of successful, ethical business people out there who don’t let greed get in the way of doing business. They should be rewarded and these other clowns kicked to the curb.
Joshua Mcshane
September 13th, 2009 at 1:31 amThanks to everyone for sharing all these wonderful ideas. The share-your-ideas-and-proposal-scam happened to as well. I now charge a consulting fee for a prospective client to hear out my ideas first.
I’ve found that agreeing to work with clients for a lower price actually puts me in a losing relationship down the line. As other readers have suggested, your initial acceptance of a low offer sets the tone for future justified-price increases.
BUT there are some exceptions who are willing to reciprocate your initial “good deed.” I guess we just have to do a better job in framing our acceptance…….
Say:
” I know the economy is hard so giving you a $200- value added service for free (be specific about the value, dont just say its for free) to help you out; because if the situation were ever reversed, YOU WOULD DO THE SAME FOR ME TOO. I look forward to a long-term relationship beneficial for us both.”
My policy now is to give my long-time clients a break from time to time.
Andrew Lanham
September 13th, 2009 at 3:38 amI have been freelancing as a writer for many years. One thing I have found is that ‘low ballers’ are invariably bad or very slow payers.
I was pleased to see that the issue of open-ended projects was raised. Low ballers sometimes try to extract extra work in the form of ‘corrections’. Part of my terms is that I will do two sets of corrections only – and that these corrections are just that, not extra text that the client now suddenly realises he or she needs.
regards from Johannesburg
webz
September 17th, 2009 at 6:01 amHi,
I would like to ask some advice, I’m also a new to freelance industry but I tried to work as homed based for some us clients but seems that I see a lot of scammers now. And worst is they used your skills and work for several of days and after they won’t never reply or chat you on ym or skype.
It’s very frustrating in my part in working hard for the projects and after that, they won’t never pay you any single of penny. I know that this was happen in most of people, but Is there a way I can report this scammer websites? or anything?
Thanks for your advice in advance.
Oasis Creative
September 17th, 2009 at 8:23 amOh… some Craigslist clients can really suck the life out of me… Though often it pans out well, I’ll definitely have to take some of these tips into consideration. I’ve finally gotten better about sticking to my rates and dealing with “the tire kicker client”.
Laura Spencer
September 17th, 2009 at 10:21 amwebz – Remember to ask new clients for partial payment up front. I don’t even start work for a new client unless they give me 1/3 down.
Paul Hancox, WriteToMoreMoney
September 17th, 2009 at 6:48 pmThese are useful tips. However – and forgive me for being a little blunt – there really is no such thing as a “market rate”.
Stephen King does not write at the “market rate”, nor does world famous copywriter John Carlton. These guys write well above it.
(Really, do they write any better than people here? Or do they just position themselves, value themselves, and SELL themselves better?)
And neither does the sweat shop writer in a third world country. They write well below it.
(Again, I would suggest that partly because they don’t write as well as the average writer here, so they can’t get as much.)
The “market rate” is really just an indication of what the AVERAGE writer might charge, but it’s up to writers to sell their own writing services and demonstrate that what they have to offer is above average, and therefore worth the extra money.
If a client lowballs you, they really see your writing as a commodity. But writing is NOT a commodity. Otherwise everyone would be a Stephen King or a John Carlton.
So the key is to pre-empt this problem, and not allow your clients to see your writing as a commodity in the first place.
And that means… shock… selling your writing service. Demonstrating the value they will get from your writing. Showing them the difference.
Damon said it very cleverly when he posed the question, “What would you like to cut out of the project so we can get closer to your $D/2 price?”
But in order to use that, the client first needs to know the VALUE they are getting. After that, you can use his killer line.
Laura Spencer
September 17th, 2009 at 7:08 pmHi Paul!
Interesting comment. I would tend to respectfully disagree.
If there’s a market for something, then there’s a market rate. The only time there wouldn’t be a market rate for something is if there were no market for it.
Stephen King and John Carlton do both work for their market rate (which may be different than your market rate or mine).
However, the term is often misused (and I’ve probably misused it here as well) to mean average rate. Or, by lowballers, the lowest rate they can possibly purchase a service for.
Thanks for providing some food for thought!
Laura Spencer
September 17th, 2009 at 7:10 pmP.S. Paul – I really like your comments on selling the value your services. That’s key, I believe. Otherwise, you will become a commodity and subject to bidding wars, as you point out.
Paul Hancox, WriteToMoreMoney
September 17th, 2009 at 8:09 pmHi Laura
Thanks for the response. This is a great discussion, by the way. You’ve inspired me to write a blog post on the subject.
The way I see it, commodities are sold at markets. So if you grow wheat, and I grow wheat, there’s probably not much difference, so we go to market and sell it at the wheat exchange for the “market rate” for wheat.
However, writing is NOT a commodity. There is no central “exchange” which determines the price of “writing”, in the same way as, say, wheat.
(Actually, there is to a certain extent. I guess we could see places like Elance as a type of “exchange”… and look at what happens when writing gets viewed as a commodity).
Writing is more like the car market. There are $2,000 cars… and $20,000 cars.
What is the “market rate” of a new Bentley or a Cadillac? I don’t think there IS a “market rate”, there is simply the PRICE the manufacturer sets… and the customer decides whether that price is worth it, or not.
What is the market rate for a new car? There is no such thing. There is simply a price, the buyer decides whether to pay it or not.
So asking “what is the market rate for writing”, is like asking “what is the market rate for a car”.
It depends whether you want to drive around in a $2,000 one, or a $20,000 one :)
When writers talk about a “market rate”, they are implying their writing is a commodity. No wonder clients then try to low ball them… because someone down the road is selling their “wheat” cheaper!
I hope my analogy makes a kind of sense :)
Dick Carlson
September 18th, 2009 at 10:25 amI’ve just gotta jump back in here, after watching the direction the comments seem to be going. I spent quite a few years on the other side of the fence — hiring freelancers and contractors, writing RFPs for work, etc. And I’ve gotta tell you:
YES, WRITING IS A COMMODITY.
Now, before your delicate literary knickers begin to twist up, hear me out. It’s a commodity to the people who are buying it, if that’s what you’re selling. So stop selling writing, immediately.
Try selling more new customers. Try selling readers who understand how to put the widget together faster, with fewer calls to customer service. Try selling blog readers who just HAVE to respond in comments and then click through to the home page of the company.
Now THAT’S not a commodity. That’s a business goal, and if you can deliver it better than the next “wheat farmer” I’ll pay you more. But if you’re just selling “writing”, I can buy that anywhere.
Now I’ll go put on my flameproof suit and hunker down in the bunker.
Laura Spencer
September 18th, 2009 at 11:11 amYeay Dick!
I think you’re my hero today!
That’s exactly what I think – it’s all about differentiation. How is your writing different than someone else’s writing? If it’s not different, then the smart client will go to the cheapest price (and they should). If it is different, then a price discussion is not really comparing apples to apples.
The accountant in me still insists that anything sold in a market has a market value – but not all things sold are identical. Kelly Blue Book (and other services like them) are able to come up with a range of market values for cars based on a number of variables such as mileage, condition, and options on the car. That’s not to say that a buyer ALWAYS gets a car for blue book value. That’s just to say that a value can be put on the car.
While I think this is an interesting discussion, I’d hazard a guess that this is all mostly theoretical. I’m guessing that we’d all probably handle negotiating with a client in a similar fashion – by trying to show why we add more value and/or or more qualifed for a project than the next guy.
I should add that this is a blog post and that the suggestions here are not the only approaches a freelancer has when faced with a lowballing client, but rather a start for freelancers who may be at a loss for words.
Fun discussion guys! I think I’m going to tweet this and see if I can generate some more ideas from the freelancing community.
James Chartrand - Men with Pens
September 18th, 2009 at 11:49 amWow, tons of comments here – you’ve hit a sensitive spot, Laura!
A few people mentioned it already, but I’ll say it again: There are people who just don’ t know the time and skill required to do the work and are surprised at the rate quoted by the professional, and there are people who shop by price alone. Then there are people looking for a break because they really don’t have the money but need the help, and those looking for partnership ventures. There are tons of reasons people ask for lowest prices, discounts, freebies, whatever.
In all cases, the correct answer is: Be professional.
Be polite, be nice, be friendly, and be respectful. Freelancers (and mostly artists) SUCK at this. (Sorry guys.) There are ways to tell people that you can’t/won’t accept a lower rate without being a snot, an arse, or an egotistical arTEESTe.
You can even say no and look really, really good to the client. You can even change their mind! “Wow, he’s so nice… Okay, well, I’ll find the money because I really want to work with him.” You catch way more flies with honey.
Know what you want to be paid, know the rate you won’t go below, and stand firm, sure. But that doesn’t mean you need to be rude, hurt your reputation, create enemies or condescend to people. And, it happens all too often.
Paul Hancox
September 18th, 2009 at 11:52 amDave, if writing were a commodity, why not just get ANYBODY to do your writing? If you’ve hired freelancers and contractors, surely you are selective in who you hire. If so, that, in itself, is proof that writing is not a commodity. Not all writing is the same. Otherwise there’s no need to be selective.
One bushel of wheat is essentially the same as another bushel of wheat. But one chunk of writing is almost certainly NOT the same as another chunk.
But I think we’re on the same page, because, as you say, if a person is just selling “writing”, then they are selling it AS a commodity (regardless of whether it is or not).
So I think we’re essentially saying the same thing, even though I maintain that writing is NOT a commodity, otherwise my next blog post would contain 500 words, all of which would be “hello”. Dead easy. Except nobody would read it.
@Laura, the blue book value is still framed around the manufacturer’s determined price.
Now, I know next to nothing about cars, but let’s say a 5 year old Porsche has a blue book value of 10K. That’s only because a new Porsche is, let’s say, 30K. It isn’t the market which sets this new price, it’s the manufacturer. The manufacturer sets the overall “frame” which determines the blue book value of the older cars.
Sure, if they set it a new car’s price too high, nobody might buy. But it’s still the manufacturer who sets the price. The market simply decides whether they want it at that price or not.
I’m not trying to be “controversial”. In fact, I think what you, Dave and myself are saying is close to the same thing… which is that the “manufacturers” (in our case, the writers) have more CONTROL over our prices than many writers realize, in the same way that car manufacturers do.
That’s what I meant in my previous comment. Clients may be low balling us if we are just selling “writing”, because THEY perceive it to be a commodity.
That’s why we must sell our writing, but not simply as “writing”. Clients usually want writing that achieves something, and it’s the thing that is achieved (i.e. the benefits) that writers need to be selling.
So a market rate only exists in the sense of a kind of “average” rate, for “average” writing. But if you can establish that your writing is worth 100.00 to the customer, you can charge 50.00.
Whenever writers talk about a market rate, they are contributing to keeping their earnings lower than they could be… unless the clients specifically wants “average” writing.
Nick
September 18th, 2009 at 12:17 pmFirstly, fantastic article, extremely useful!
Secondly, I have to agree with Paul, although it’s more like writing with an aim, the copy being written has a purpose, and I suppose it’s that purpose which could influence the price. However, I also believe there is a perceived market rate by buyers, who think word for word, all writing was born equal. I guess in the end it’s basically down to which client and which provider you look at, and how they see themselves.
Dick Carlson
September 18th, 2009 at 12:44 pm@Paul I wouldn’t buy your “commodity” if you couldn’t get my name write. Not even my wife calls me “Dave”
Paul Hancox
September 18th, 2009 at 12:56 pm@Nick… you said: “However, I also believe there is a perceived market rate by buyers, who think word for word, all writing was born equal.”
YES! The key word there is “perceived”. There is absolutely a perception of a market rate among buyers, which they will use as a guide when they have no other information.
It’s up to the writer to change that perception… to make their writing distinct from a commodity.
However, when writer’s themselves talk about a “market rate”, they are contributing to that perception, and hence to making it harder for themselves to charge more.
In other words, there’s a perception of a market rate among buyers partly because writers themselves contribute to that perception.
There is no such thing as the market rate for a car. There IS something of a market rate for a specific model of car, such as a Tata (claiming to be the world’s cheapest car), or a Mercedes (one of the more expensive cars).
Why do people buy a Mercedes, when a Tata will get them from A to B? After all, isn’t a car just a car? Isn’t it just a commodity?
No. There are many differences in design, look, feel, shape, perception, engineering and so on.
The same is true of writing. Of course there is going to be a difference between a third world writer, to whom English is a second language, with only a few months writing experience, and Laura Spencer’s writing (with her 19 years of experience).
That’s because writing is NOT a commodity. But it’s true, some clients may PERCEIVE it to be a commodity.
As writers, when we use and take phrases like “market rate” seriously, we are, unfortunately, contributing to that perception…
… which brings me back to one of the reasons clients might low ball us… because we haven’t done enough to change that perception of our writing in the client’s mind.
Nick
September 18th, 2009 at 12:58 pmCan’t disagree with anything there Paul!
Paul Hancox
September 18th, 2009 at 1:03 pm“@Paul I wouldn’t buy your “commodity” if you couldn’t get my name write. Not even my wife calls me “Dave” ”
Sorry, Dick. Getting someone’s name wrong is always embarrassing :D
Laura Spencer
September 18th, 2009 at 2:06 pmGood points everyone!
This has been an interesting discussion. It’s ALWAYS valuable to examine assumptions and perceptions from varying perspectives. Freelance Folder has a great community in that regard.
(I feel a bit like we’ve all been in a brainstorming session.)
If you do decide to post on this on any of your blogs, be sure to link here and let me know.
Thanks again for sharing your ideas.
Orange County Web Designer
October 9th, 2009 at 11:05 amLaura, I really resonated with your post. My biggest problem is a family member who always says,” I’m going to send a lot of work your way.” (From his vast array of real estate associates). He delivers a little and expects on-call technical and design expertise. sighhhh. Family’s a tough one huh?
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