How to set a suitable pricing for your business?

As everyone knows, the main purpose of work is usually to achieve financial return, and although other factors can be essential for some to move towards their business, the largest proportion of people work to get a fee for their efforts. But while there is a clear and simple relationship between work and entitlements in traditional work, the relationship is more opaque in the field of self-employment, and the exact same work can bring very different values โ€‹โ€‹of entitlements depending on the circumstances.

In the field of self-employment, the independent worker actually carries a big responsibility when it comes to pricing. While some tasks have generally accepted prices, in many cases it depends on the customer and the independent being confident about the price.

In this part of our guide to entrepreneurship we will address the financial aspect, which is most important in fact, where we will talk about the most important ways to determine the pricing of your business to be as fair to you as possible, as we will talk about some tips to protect yourself from exploitation and loss of your business free of charge.

Setting a quote is not easy in reality.Positioning a price too low means you won’t get enough money.Many will doubt the quality of your business as it is cheaper than usual.An expensive pricing will keep many budgeted customers away from you. Tight or they simply have better options than you.

In general, there are a few things to consider when determining your pricing:

Make sure that the service you offer is pre-priced at all and what is the right pricing

Before you consider setting a price for the services you offer, you must first make sure that the service available is priceless in this way. Also, something like video editing can change dramatically depending on the desired effects and the amount of work required, as simply cutting and pasting several consecutive videos is much easier than adding effects, transitions, or even animated production.

In general, assuming that the work you do is priceable because you have specific criteria for it, here you should consider which pricing you will adopt, since the choice of one pricing is very important when you set specific prices for each project, while the pricing of translation, for example, the number of words appropriate, pricing The number of pages may be a real problem and lead to some mapping or exploitation. Similarly, pricing a video editor per minute is usually the best, while pricing it with videos is a very bad idea.

Use a chip system that allows several levels as the hardest work costs the most

Suppose you want to work in one of the easiest areas of self-employment in terms of pricing and translation, you may think that it is simple and all you have to do is pricing tasks according to the number of words, and accordingly you will get a fair pay commensurate with the task. But in fact, even in the field of easy pricing as well as translation, there are many variables. Audio translation is different from translation from text, and video translation with time stamps is clearly more difficult than usual translation.

In most cases you will find yourself in need of a chip system that allows you to choose the pricing according to the difficulty of the task that is presented to you, since the pricing of work will take a few hours and another will take longer and cause greater psychological pressure is illogical. In general, you should pay careful attention to the chip system and be clear with the client that what he is requesting falls in the chip, as the definition of the difficult task may be different from person to person and the last thing you want is a customer who thinks he will pay less than you think he will pay.

Find out the pricing that your peers usually have near experience and quality of work

No matter what pricing you see fit and think you deserve, you should always make sure that you are close to the average of those in your industry.Making a much lower pricing than others means you are losing the opportunity to make more money, and a much higher pricing than Usually it will make the number of potential customers much less and will harm your chances of getting the tasks and projects you are working on.

Of course, when we say that the best is to approach the prices of your peers, here we talk about those who provide a service or product within the same level, where it makes no sense to be a novice in a field and decide to put a similar pricing for one of the key experts in this area, and if you are an expert it makes no sense Some agencies adopt low pricing as your standard as they usually produce much substandard services.

Pay attention to existing competition and how it can affect acceptance of your pricing from customers

This is probably the main factor that stands in the way of online business in many countries. Extremely from one country to another, and what is a little not enough room rent in one country may seem like a large and above average average in another.

For example, suppose you live in a country with a relatively high average income as in Western Europe or the Gulf countries. What is enough to live in India or Egypt does not do anything in high-income countries. Of course, you have a better chance if you are from a country with lower living costs, where you can do tasks at lower prices but you will still be profitable compared to your own.

Both pricing by working hours or by project pricing have their own problems

In different parts of the world there are usually two types of task pricing in fact. About the time and effort needed to accomplish it. While working-hour pricing is difficult when working over the Internet, the standard approach is usually project-based pricing and fixed service pricing.

Although pricing by project may seem ideal for self-employment, it does not come without its disadvantages. Projects, however similar, remain different from each other. . It is simply possible for a Lahouh customer to waste a lot of time with e-mails, lengthy phone calls or even multiple and continuous modifications.

The best solution is usually to adopt a hybrid system in fact, where a fixed price is set for projects with strict and clear conditions in terms of acceptable adjustments and the amount of communication so that the customer does not waste too much time, but for additional things such as the need for additional adjustments or waste time to communicate or not to respond Inquiries are calculated as an additional price other than the original project. This way you can ensure that you get your rights the best you can.

How you can ensure that you receive your dues in full and with minimal delays

Perhaps this is the crisis that haunts the largest proportion of those who work independently, as many cases of fraud occur all the time and even in the absence of fraud, the delay is very common, especially when working online and includes international remittances that take a lot of time to be completed .

Of course we do not have a magic solution that will prevent you from being scammed, but there are some tips that can help you ensure your right as much as possible and get your dues.

Free samples are only acceptable if you do not have a Portfolio

If you are still new to the field in which you intend to go into self-employment, some samples are expected to ask you to make sure that you are good enough. Just. But you should be careful that many people take advantage of this and try to get completely free work by collecting samples.

Of course there is a simple way to avoid it: build a large experience file with many models of what you have created and presented earlier, since the existence of a good experience file denies the need for free test samples, and if the customer insisted on free samples it is likely that he is not looking for an independent to carry out the work They really use free samples as a way to get free services.

Request a prepayment that is part of your entitlements or ask to divide the work into several stages

This type of transaction is probably one of the most controversial, as there is a permanent crisis of trust between the client and the independent, and while making an advance payment (usually between 10% to 50% of the contract value) makes the independent more reassuring it makes the trend uncertainty. The other is that the client is here to pay before actually receiving any work and there is no guarantee that the independent may simply ignore his request after receiving the money.

If you’re still new and don’t really have a great reputation, your customers are likely to refuse to make a down payment, as it’s almost exclusive to large freelancers who can choose from dozens of available customers and can set their own terms unlike beginners who are still struggling to find new customers. .

In general, if the prepayment is far off, it is usually useful to divide the work into several different phases, where the dues of each stage are paid once they are completed, in this way the independent reduces the amount of work that could be lost if the customer escapes. The client maintains his interests as he pays for the tasks after execution and not before.

Use a platform with a good and reliable mediation service

For freelancers with long experience and long client lists, self-employment platforms may seem a bad idea. In some cases, these platforms cut up to 25% of revenue, and no one wants to sacrifice some of the money they could have earned. However, if you are a newcomer or are dealing with new clients that you do not fully trust, it is best to use a free platform as an intermediary between you so that you can secure your right.

Of course, it is not enough for the client to create an account for him, but he must confirm his method of payment and put the amount of money for the task in the mortgage situation so that he can not evade the task. Of course and to protect the interests of customers there is usually a mediation service in the event of disagreement and the refusal of the independent to complete the work or that it completed in a way that does not comply with what was initially required. Here the site governs the eligibility of the money and of course will deduct its rate, but a little less is normal and even preferred if it will guarantee your right and prevent the evasion of the customer from the response.

Do not hand over the final copy of the work until you are assured that your dues will be received

This method is probably the best guarantee, and although it will not protect you if the customer decides to abandon the project at all, it will protect you from stealing your work without paying your dues. Simply do not submit your desired project, but send proof that you have completed it such as screenshots to translate or perhaps a standard logo image with a watermark that prevents its use. This way you can ensure that you receive your dues and that the client will pay assured that the job is done.

Give priority to local customers

In the general case you should give priority to customers who pay more and offer better job opportunities later, but if all factors are equal between two customers, one local and the other in another country, it is always better to give priority to the local customer, since evasion of payment locally is less likely that you can The customer is legally pursued, and local payments are much easier and faster than any cross-border payments.

In fact, the process of getting money from outside clients into the home is one of the most hated among independents.