When you are trying to bring in new business, it can be tempting to use price as an incentive. But cutting your prices is invariably a mistake. Competing on price often feels like such a natural path to follow but for most small businesses, it is the road to ruin. I don’t mean that you should charge what you like. I simply mean that you shouldn’t make price the main reason that you expect your company to be chosen over rivals. And you should absolutely never commit yourself to beat any price from any other supplier. Competing on price is a big mistake, and it’s one you can’t afford to make if you want your freelance design business to be successful long term. Price competition can do more harm than good to your reputation and the types of clients you attract. It really can be a vicious cycle that is impossible to get out of and seemingly more impossible to break as a business practice.
You always undermine your credibility by charging less. Let us stop for a moment and think about the message you send your clients by charging less than you’re worth. In your mind, you think that clients are saying, it’s great and they can afford it finally but in reality, they are thinking that why is this person charging less than everyone else and may be they must lack experience, or maybe they’re just not very good at what they do. Clients expect those who are good at what they do to charge more than the competition, and they’ll gladly pay a higher price to get the service they desire. After all, your clients believe in “you get what you pay for,” just like most people do. We tend to attract those who know the price of everything and the value of nothing.When you compete on price, you attract clients who value price more than anything including the value of your work and how it can benefit their sales, marketing, and position in their industry. It doesn’t matter whether you provide the very best services money can buy or you do a just a so-so job, you’ll never have a long-term relationship with these clients, unless you’re willing to compete on price forever because price is all they really care about. As soon as someone cheaper comes along and you’re not willing to drop your prices, those clients will be gone. Cheap clients almost always complain more, take up more of your time, and are rarely satisfied. That’s because they’re always looking to get more for their money which usually means more work for you, more headaches for you, more fires to put out, etc. No matter how great of a freelance designer you are, you’ll never be as successful as you could, if you compete on price.
When you don’t charge what you’re worth, you undermine your credibility and you attract the wrong kind of clients. However, when you refuse to compete on price and add a lot of value to your services, you make your work more enjoyable and profitable, which will make your clients happy to pay you what you’re worth.