That thought occurred to me this week as...
- a discussion on Linked In's LinkEds & Writers group posed the question "how much should I charge for editing web sites?"
- an article on Freelance-Zone dug into how the time-value of money affects freelancers, and
- I picked up a copy of Chris Anderson's Free: The Future of a Radical Price.
For any business, pricing your product or service properly is absolutely critical to survival, let alone profitability. Your spreadsheet includes not just the hard costs and time to execute the project, but the overhead costs--everything from the furniture, office supplies and utilities to healthcare and insurance.
My experience is that creatives in general (and freelancers in particular) tend to shoot too low--whether it's due to lack of experience, poor business sense, or simply undercharging for doing something they enjoy. Obviously, it's difficult to always put a monetary figure on something you've produced through nothing other than the gray matter between your ears. But one thing is for certain: If you fail to price your skills right, your clients will surely fail to value them properly.