Blog to support the book "Creatively Self-Employed: How Writers and Artists Deal with Career Ups and Downs" by Kristen Fischer

Friday, February 27, 2009

I resurrected the age-old debate about lowering rates over at FreelanceSwitch.com. But it's different than the debate over working for lower rates consistently. Still, the post opens up a wide range of discussions. (I was glad to see that the discussions were kept polite, too!)

See, a client of mine asked me to lower our standard rate when he misquoted it to a client. In this case -- awesome client who gives me regular work -- the reduction wasn't that big of a deal. It would save him from going back to the client to jack up the price. It was his mistake, but I didn't mind taking a few bucks off the price because this guy's good business. In this case, I didn't lower my rate due to the economy. But I have in other instances -- or I haven't jacked them up as high as I could.

The article does open up a broad spectrum for comments on the topic of lowering rates in our current economy. What happens when you get a client who wants to see if you can go a little lower? Well, that depends on you. But you have to look out for yourself, too.

Have you lowered your rates due to the economy at all? Or for a client on a one-time basis? What were the results?

link | posted by Kristen at 6:15 AM |

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Blogger Adam StJohn Lawrence. commented at 12:03 PM~  

No, my rates have remained the same. I vary them from case to case anyway, but have not made an chages for the crisis.

I like Ron Shaich's attitude:

"Everyone is degrading their competitive message. They are sacrificing it in the interest of gaining sales tomorrow, simply based on price. And when you compete on price, you simply tell people what you are worth, which is less than what you were selling it for the week before"

It is healthier to do less work for the same price, rather than the same amount of work for a lower price. Both cut your income, but losing a few contracts short term gives you some free time for other projects, as well as causing no problems later when you have to raise prices again.



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