Raising your rates as Freelancers is another way to make more money as a freelancer. But not really because of money anyway. A freelancer who had worked over the years has to do this not because of money but for new skills acquisition and to raise the portfolio.

There comes a time when you must rethink your compensation scale, whether you’re a freelance writer, designer, or any other kind of self-employed professional on Oziconnect.

 It might be challenging to know how to subtly increase freelancing rates with current clients and set your new pay grade for prospective ones, even though the justifications for doing so are frequently sensible.

Here is a step-by-step tutorial on increasing freelance rates to help you get through this period. Learn when and why to raise your prices as well as how to approach current customers.

Reasons to Increase Your Freelance Rates

Although it may seem like a requirement for new freelancers to set themselves at a lower rate in order to build a portfolio, there comes a time when they must reevaluate their rates. 

This is a logical development and evidence of increasing competence. Here are a few of the primary explanations for freelancers’ rate increases.  

 

• A living wage is necessary: You should no longer be working for $3 an hour. Ask for more so you may concentrate your efforts on fewer, better-paying tasks and enjoy the luxury of giving the little things more time and care.
• Your expertise and worth have increased: Similar to how new hires begin with entry-level salary and advance, your worth increases as you work as a freelancer in your industry. The more you study, the more valuable you become, thus it’s reasonable to demand more because the customer will gain from your increased level of skill.
• Self-respect: When you continue to work at low-paying jobs even when you know you can make more, you are refusing to take chances and undervaluing your abilities. 

This can therefore have a negative impact on your reputation and cause them to question why you aren’t requesting more.

• You may create a stronger portfolio: Higher-paying occupations typically include clients that can afford to spend more, such as corporate-level clients who are willing to pay more for quality. 

This results in a customer list that is more impressive and that you may utilize for your portfolio.

• Your spare time increases: Imagine achieving your financial objectives more rapidly and working half as much but still earning the same amount (or more). Time independence is at hand!

You lay the groundwork for a strong career: While it’s enjoyable to make some extra cash, raising your rates will enable you to turn your side hustle into a career.

1. How and When to Increase Your Freelancer Rates  

When you realize that you’re working harder but getting paid less, you should boost your freelancing rates.  As a freelancer searching  for where to do more jobs in addition to your current marketplace click here

You would receive less than $5 per hour, for instance, if someone offered to pay you $10 for three hours of labour. That won’t do in the current economic climate. 

The price of petrol and car upkeep might also affect your bottom line if you have to drive to meet a customer, which should also lead you to increase your charges.

Finding the ideal price point requires some trial and error.

Thankfully, knowing how much you make per hour is simple when you use practical tools like automated time tracking.

 After monitoring the time you spend on the project, You may then determine if the prices are reasonable or whether they need to rise by taking into account the compensation collected for each assignment.

Making the initial move to ask for more may be a frightening experience. But you’ll be surprised by how many customers will support your request for what is exclusively yours. 

They will respect your expertise and understand that it is worth what you are charging if they are excellent clients. 

2. How To Increase Your Freelancing Rates 

Research and tact should go into increasing your freelancing fees. The first thing you should do is compare what you are charging to what others in your profession who have the same level of expertise and years of experience are charging. 

You could get along well with other freelancers or be able to discover information online, including the typical yearly income of a freelancer in your field of expertise.

You may set it up for your clients once you have decided on a fair price to charge. We’ll concentrate on this step first because it might be more frightening to raise rates with current clients than it is to simply charge your new rate to new ones. 

3. How to Talk to Current Clients

Bringing up a price hike with current customers might elicit strong feelings. A low pay rate that appears “frozen in time” from when you initially started working with them may annoy you on the one hand. 

On the other hand, you are aware that both your worth and the expense of living have increased.

While these emotions are at odds with one another, you must have faith that if this client has supported you from the beginning, they will have witnessed your development and, in many ways, feel fortunate to have grandfathered such a deal in the first place. 

Similar to how Netflix raises prices, but people continue to use it because they see its worth, customers will do likewise. 

4. Inform Your Customers Or Clients

You must eventually introduce the subject to break the ice. It’s essential to deliver the news carefully and personally in order to preserve your connections.

Based on their preferred method of contact, you may decide whether to call, write a personalized email, or send a conventional letter to your clients.

 Overall, the greatest outcomes are predicted by delivering the news in a kind and straightforward manner. To make the transfer easier, be sure to mention the following: 

• Thank the client for their business.
• Thank your client for their continued support.
• Offer perks like a grace period for rates that are grandfathered in. 
• Give recommendations for people who can assist the client if they decide to move on.

5. Mention Reliable Arguments 

Saying that you want to increase prices because you want to travel to Aruba this summer is not the right moment. Instead, explain the justifiable justifications for the rate increase. 

It all depends on your industry and particular requirements, whether it’s the rising cost of building supplies for a contractor, a new certification raising your value as a hairdresser, the rising cost of living and the need to keep up with it, or reaching a new level of experience that justifies a price increase. 

6. Give a grace period to recurring clients

Offering your previous cheap prices for an extended period of time while charging your higher rates for new clients is a great way to show long-term clients that you value their business. A 30, 60, or 90-day grace period would be excellent.

 In addition to respecting their connection with you, this allows the long-term client an opportunity to catch up and modify their budget to your new charges. 

7. Keep Check On their Decision 

The client will follow you if they value you and can accommodate you financially. It will still be alright if they decide to split up after hearing the news.

 There won’t be everyone who will be on board and eager to look for the greatest “deals”. In reality, when you raise your compensation, it’s common to lose some clients. But in the world of freelancing, quality does indeed correspond to price. 

You can be sure that the proper individuals will remain around if you are confident in the quality of what you are providing.

How to Deal with New Customers:

It is far simpler to approach new clients than it is to change pricing with current ones. All future customers will pay the new price you set when you increase your Oziconnect prices by choosing “edit gig” on your gig page. 

They won’t have any previous rates with which to compare your data, so you will be beginning from scratch. Here is how to onboard new customers at your higher rates.

Provide a Quote: A potential customer will inquire about your services and then request a price. Those that are interested will automatically follow up and employ you when you let them know your pricing. 

Don’t be overbearing; give the prospective customer some time to consider their budget and consult with others who must be engaged in the choice.

Observe their response:    The next thing you should do is get in touch with the possible customer once more to gauge their level of interest. Give them a nudge if you don’t hear back from them after three business days. 

If they say “yes,” you may plan for what they want and when based on their response. It’s time to continue if they refuse or don’t reply.

8. What to Do If a Client Is Unwilling to Accept Your New Rates

When customers perceive that the value outweighs the cost, the majority will agree with your prices, but some won’t begin or continue working with you. That is typical. Some people might be upfront and say it’s beyond their means. 

Recognize their choice and thank them for their time. To make this move easier, you may suggest someone who still provides the previous prices. 

 Others could desert you. This is typical as well. An old client may choose to remain silent, while a new client may experience sticker shock and never reply. After one follow-up, let these folks go and refrain from messaging them.

 They know where to locate you, therefore it’s best for your career to move on and find clientele that respects your new rate. 

Realize Your Worth

You could feel frightened or concerned about losing clients when you ask for a rate rise, but you won’t ever run out of clients if you’re asking for a reasonable market rate for your abilities. 

You can employ one of our skilled independent business advisors if you need assistance developing a plan to raise your charges. Join the vibrant Oziconnect team of freelancers now to start working as a freelancer in your profession.