Oh come on, you have a brand. You do. Didn’t know that, did you? Well, each time you interact with a client, you leave an impression. You also build a little more credibility in an industry or a niche, which helps define your future projects and clients.
That’s what I want to talk to you about. Remember that post I had last month on pricing your skills in a tough economy? Let me tell you why lowering your prices – and doing so publicly – is hurting you (and me).
Too many writers are openly discussing lowering rates and working twice as hard just to maintain their own status quo. But that’s going to come back to bite them. Instead of changing their marketing methods or approaching a class of clientele that can afford them, they’re slashing costs like a retailer attempting to avoid bankruptcy. And that slashing? It’s going to lead to some serious fallout long term. For all of us. And what gets me is that they don’t even see it. They see this as an opportunity to beat the system – to secure long-term work that defies the recessionary climate. In actuality, they’re being sucked in to the center of the storm. For the standards we lower today become the hurdles we have to leap over tomorrow and for many tomorrows to come. If we could work for less now, why on earth do we need to raise our rates when times are good?
If you lower your rates across the board in an attempt to attract business, guess where the industry rates will go? See, the market bears what it can afford, but it also adjusts to respond to pricing trends. If the trend in the writing industry is to drop rates by say 15-20 percent, how long before all rates for writers follow? You may attract a few bargain shoppers now, but two years out when this recession is just a bad memory, you’re now facing a clientele that cannot justify paying you what you’re really worth because you were so quick to devalue your own work. Why should they see you in any way other than the way you packaged yourself?
I know the easy thing is to offer discounts in hopes that the clients you’ve won will stick around. But it’s not the best thing – not for you, and certainly not for the writing industry. Creating a market of bargain hunters hurts everyone and the effects of that will ripple through our industry for years if allowed to go unchecked.
So what do you say? You willing to take a firmer stance when it comes to rates? Like I said before, lowering them on a case-by-case basis and only after careful consideration – more power to you. But do you guys think lowering them for everyone is really the answer? Why? Why not?
14 responses to “Your Brand and Why You’re Killing Me Here”
I’m going to really annoy a lot of people here, but, in my opinion, how you view your price is both an indication of how much respect you have for your work and whether you’re an amateur or a professional.
In one of the discussions on another board, someone couldn’t believe that the (many) articles written over six months earned her $25!!! Woo-hoo!
I’m sorry, but $25 doesn’t pay for six months’ worth of my bills.
You’re correct — the writers who work for these 20 articles for $1/article are hurting all of us — and part of it is a lack of self-respect on their part.
Why should the client respect the writer’s skill if the writer doesn’t?
That thinking doesn’t tick ME off one bit, Devon. I couldn’t agree more.
I’ve actually raised my rates significantly since the economy started tanking. In my opinion, freelancers are worth even more now that many copywriters and marketers are being laid off. The work still needs to be done, and freelancers give companies good work without them having to pay benefits, commuting costs, employment taxes, etc.
I agree with Devon, and like Leigh I have also raised my rates. As a matter of fact, I’ve been working on a nighmare of a project for the past two months and plan to present new rates to the client based on the amount of time and work invoved with future projects (they have made several changes that only came to light while working on this project). My time and the energy I put into my clients is worth fair wages. I can’t be bothered with anything less.
Like Lori suggested, I plan to find clients that can afford my rates. I have some now and know there are more out there. Lori, I have also wondered about how people who lower there rates now will get back on track when things turn around.
Hi, just wanted to say – I totally agree with you!
Bargain shopping might be great for the customer, but in the long term everyone loses.
I live over in Germany, where companies like Saturn and Mediamarkt (big electronic market over here) have shaped our value of electronic devices, which is: lower prices are a go for everything!
Sadly, we are now at a point, when no one actually knows any longer what is worth what… and that goes for every parts of life – even literature.
Personally, I find this sad, because it drags into the personal life and how everyone perceives things. And who wants to perceive everything in life as being cheap, right?
Me? No!
So everyone be proud of what they do & charge away 😉
Greets Ivonne
This kind of discussion always reminds me of a joke my dad told me once. (Okay, more than once.)
You can tell the story however you want, but basically there’s a salesman with something priced very high — $10,000 or something. Someone says to him, “You won’t sell very many at that price.” And he responds, “At that price, I don’t need to sell very many.”
The same concept applies here, though of course I’m not pricing anything at $10,000. :o) The point is, if you price your services at the highest the market will handle, yes you may scare some potential customers off, but you don’t need all of them.
I’d rather have fewer clients, less work, and higher prices, and I can’t imagine who the heck wouldn’t see it that way!
Excellent point, Katharine! Much needed in this economy.
Ivonne, I’m so glad you visited! Please make us a habit. I love making new writing friends. 🙂
Kimberly, Leigh, I’m SO glad to hear your experiences! There’s no reason why we can’t get a “raise” even in a tough market.
And I’ll say it again – have our doctor’s lowered their rates? our hair stylists? our dentists? I doubt it! Professional services should require professional rates!
I am not a freelance writer – but I do sometimes do some freelance editing sometimes – and I won’t go lower my rates – I work hard and it takes many hours to do a good job! And, that time takes away from working on the novel(s) – so!
(and as to your comment on my site – now I want some sangria! *laughing*)
Mmm . . . now I want sangria!
I’ve not raised my rates yet this year, but only because I plan to raise them on my “freelanniversary” in June. I do, however, have to make a tough decision about whether or not to accept less than my normal rate for a project. My inclination is to say yes, because it’s not that much less (and certainly not as ridiculously low as Devon’s example!) and it will be a good learning experience for me. What are your thoughts there?
Excellent post, Lori! I’m embarrassed to admit I’ve considered slashing my rates this year myself because work has been so hard to come by. Sadly, desperation makes people do foolish things, and we’re living in some pretty desperate times.
Your post made me realize that the choices I make now can affect our entire industry. It’s something I didn’t really consider before, and I know I’m not the only one.
So many writers are trapped in survival mode. They don’t know how to build a strong and lasting client base, so they make mistakes that cost us all in the long run.
Hopefully your words (and the great comments everyone made) will help change that!
It’s okay, LC. We all have the tendency to live in the moment when there are bills waiting to be paid. 🙂
I had that sangria, Kathryn. Remind me next time to drink it AFTER I eat – I sort of remember watching Nova last night, but it could just as easily been Family Guy. ;))
“Freelanniversary” – I LOVE it! :)) As to the rates, Amie, I say if you can do the job easily and there are minimal additional edits, consider the lower offer. Or…. counter with a slightly higher rate. Does that help?
Before you slash rates, truly understand your business situation. I’ve been telling my friends for three months that I’m doing OK, but not as great as last year. Yesterday, I took the time to review my Dec., Jan., and to-be-completed-in-Feb. and -March receivables. I was surprised to learn that I’d earned much more money than I thought. I wasn’t planning to slash my rates, but I now know that I have to change my mindset from being worried to realizing I’m doing pretty well.
Way to go, Gabriella! That’s a pretty nice surprise, isn’t it? :))
Thanks Lori–I did counter, so we’ll see how it shakes out!