Solo Biz Soft Editorial Team Most freelancers make the same pricing mistakes early on. They are easy to fix once you know what they are. Here are ten to avoid.
1. Copying competitors
Their costs, skills and goals are not yours. Work out your minimum with the hourly rate calculator.
2. Forgetting unpaid time
Sales, admin and revisions take time you do not bill. Check your billable hours calculator to see the effect.
3. Ignoring tax and costs
Your income is not your profit. Include tax, software and equipment in your rate.
4. Quoting without a buffer
Projects run over. Add a buffer, then see what happens with the project price calculator.
5. No deposit
Take a deposit before you start. See How to Ask a Client for a Deposit.
6. Vague scope
If it is not written down, the client may expect it. See Statement of Work Template.
7. Free extras that become expectations
If you do extra work, say it is a one-off favour. See How to Handle Scope Creep as a Freelancer.
8. Discounting too quickly
Offer a smaller scope instead of a lower price for the same work.
9. Never raising rates
Review your prices every year. See How to Raise Your Freelance Rates.
10. Pricing only by the hour
Hourly pricing caps your income at the hours you can work. Consider fixed prices or retainers. See How to Price Freelance Projects.
Frequently asked questions
What is the biggest pricing mistake?
Undercharging is the most common, because it hurts every project you take.
How do I know if I am too cheap?
If almost every client says yes without question, your prices may be too low.
How often should I review prices?
At least once a year, and when your costs or skills change.
Related reading: How to Price Freelance Projects · How to Calculate Your Freelance Hourly Rate
This article is general guidance. Your own situation may differ.