Last post I
talked about freelance productions fast, good or cheap. I also discussed
the importance of setting your rates as a freelance artist, but I didn't really
get into how to set rates. This post I will go into further detail about
setting your prices, so that you don't end up paying to work. In my
experience the most uncomfortable thing to discuss with a new client is cost
especially when you have no idea what to charge. When I first started out
I was eager to jump into the industry, so I allowed the employer and client
dictate the terms of payment. This was my first beginner’s mistake,
because if I didn't value myself how could anyone else? My dad used to
say, “you have to get burned to learn,” and after being burned a few times I
finally got the point.
In order to
put my views into perspective, I needed to evaluate my situation. I came
up with a three-step formula that I still use today to help me keep my rates
competitive and in line with my competitors and other industry professionals.
1) Research
the competition and industry - The economic environment plays a huge role in
what businesses and clients will spend on a production. Although the
industry is constantly fluctuating knowledge of where the industry is leaning
is vital to growth and success. Researching the competition is just as
important, because you don't want your prices to be extremely lower or higher than the competition. If your rates are too low then the client thinks
something is wrong and if your rates are too high then the client will shut the
door thinking they can't afford your services leaving you with a missed
opportunity.
2) Know your
salary range - If you were working a full time job doing what you do freelance
how much would you make? Be realistic and don’t forget what you have to pay in
taxes and benefits you don't get as a freelance artist. If you don’t know
what you rate then employers and clients may short change you or worse.
3) Do the math – “Why spend more time and money on a job then you are making?”
I have done this myself by covering costs I didn't bill the client for, because
it was an unexpected expense. I see ads and job postings all the time for
editors and videographers that must have their own equipment, but don't get
extra pay for using their own equipment. Let's see if you spend 20
dollars both ways to a job in gas, 1,500 dollars on a camera, 235 dollars on
audio and microphones and 150 on lights then you are starting in the
hole. I'm not saying you should charge every job the total cost of your
equipment, but it should be a factor.
It’s your
job as an industry professional to sell your skills and experience in order to
get the rates you deserve. Next post I
will delve into client communications.
Hopefully these tips are helpful. Do you agree or disagree with
this logic? I look forward to your feedback.
