Everyone Lied To You About Pricing

[@facundogimenez1679]

Ran, I can't believe the fact that this channel doesn't have 1 Million subs yet. You and your team deserve it! Blessings from Argentina

[@FluxAcademy]

We are patient.

[@eljaycampbell3388]

I was thinking the same damn thing. Amazing content

[@kaneworthington]

You're so spot on about feeling insecure as a creative professional.

[@nicolewiesner1772]

This is by far the best advice for pricing your work! To add to it: in my experience, the one thing that has helped me price my work is improving my self confidence. It's a process and there are plenty of things I've done to get better, which is mostly getting experience (talking to people, not just clients, practice pitching, etc) and telling myself that I do provide value for others. I've slowly increased my prices since I feel more confident now and I know that with more practice I'll get better 🙌

[@kikikow]

I've been freelancing for just over 1 year and the turning point for me when pricing and sharing the price was setting the conversation with my clients in terms of "I sell the value not the product".. Most clients don't understand the work that we put into design or what they actually acquire through it.. when it comes to intangible products they tend to dismiss the value, maybe cause they have no experience on this or cause they don't see a material object in their hands (such as the bag you mentioned).. Now I first explain the value they gain and then share the price.. I've never had a client ask me to lower the price ever since!

[@moleculemarketingllc]

Why should they care about the time and work put into it? They want a solution to their business problem so focus on THAT!

[@kikikow]

@@moleculemarketingllc of course they do, and it's completely understandable! They also would obviously want to spend as little as possible, but we provide a service with a cost, so it's a transaction and if you manage to make the client understand the value of the service they are more likely to agree with the cost

[@techycompute3636]

Use templates to speed up the design process.

[@elisdotenv]

We are going to push this to 5M subs, Such an Honest Channel, Honest people Honest Everything.

[@AdrianTwarog]

Knowing the cost, price and value, then applying that knowledge between the client and yourself is the stepping stone you need to grow. Also great video!

[@LixtianShanghai]

In reality, Your pricing will always be judged comparatively vs others substitutes in the market no matter what. Its not about how much you believe you can charge, its about if you have enough credentials and high quality work as a proof for your worth . Also, if the client runs a 5 million business, he will be less concerned paying you 100K for design. If a client runs a 1 million business, then he might think twiice about paying you the same amount. Find rich clients, and find clients who allows you to do good work

[@bartderuyck]

Absolutely. There is no way someone walks in and says: my work is worth x and I believe that so, therefore, you will pay x. Every client who is worth their salt will ask for proof points and compare you vs competitors. Pricing doesn't exist in a vacuum.

[@rocheuro]

Find rich clients, and find clients who allows you to do good work - i like this one. Golden.

[@Go_Places]

Thanks for your advice. Great, as always:) The biggest part of a pricing process is a matter of self confidence. However, when your are a beginner, freelancing makes it harder to realize your own true value (skill level+talent+potential). What helps is that u get a mentor or someone knowledgable to hold your hand and tell u the truth (give honest feedback), to advise on where u are actually standing. This helps with healthy self-confidence and would be a starting point for climbing up the pricing ladder. This way u dont start too low (=waist time & lose money) or too high (=no clients & missing out on practicing). Wishing everyone to become Gucci of web design, if that's where you wanna be ;))

[@aman_design]

loved this, i have this feeling when i am pricing a project.. but all these formulas actually bring down the pricing, and have lost great clients for quoting lower than the competition which actually delivered bad results.. so i concluded that pricing is as subjective as possible...

[@Pmauriat76]

Totally agree. We have been doing this for the past year and it works for my company. Great video.

[@fishionboy9911]

Thanks a lot for this kind of videos. Here in Spain, maybe in other countries too, there are a lot of creators working in crap jobs, and delivering projects on the bottom of the market at very low prices. I'm working hard on it trying to make my micro studio, and contacting to those underpaid awesome creators to try to make something. It's fucking hard, but I love it. I hope that something comes up. Truly thankful

[@PeterGuirguis]

Thanks for being so truthful! You are 100% correct about pricing!

[@KyleCWong]

I started freelancing a couple years ago, and it's definitely been a journey in learning how to price my work. I had a lot of advice from a friend who's been doing freelance work for much longer, but the advice was spoken from his position in his career. It was definitely something I had to feel out and learn from each job as my quality of work improved. Really great video topic, thanks for sharing!

[@mrreinark3388]

How is the salary on an average year? Do you think the salary is decent?

[@KyleCWong]

@@mrreinark3388 ​ @MrReinark I think it depends what you define as decent? Also depends if your able to find your own clients and know how to bill them properly. Everyone will have a different experience going into freelance work, however if you're willing to do the work, your pay will reflect it. Also note that income will vary throughout the year which tends to be slower in the winter. If you're having difficulty finding clients, I think it might be a good idea to reach out to some photo studios to see if they need help.

[@jaydj9179]

This is a brilliant point, and it applies not only to this field, but to freelancers and creatives in all fields!! Bravo Ran!!! 👏👏👏

[@FluxAcademy]

Thanks Jay!

[@carlos_mann]

This was an awesome video! Im going to re-watch this a few more times at least. This is my MAIN PROBLEM, not knowing how to charge for my services. I have like a handful of businesses I want to start, I have all the equipment, and understand how to do all the work on the back end and I am pretty good but I lack the know how to charge for these services that I am wanting to charge. The only help I ever receive is the same thing over and over, "well, how much are your living expenses, how much do you need to make each month, etc" all those types of questions are so irrelevant bc my living expenses are so low that I can survive extremely comfortably on just making like $1500 a month. A majority of that is going towards rent. My bills are so small and I only buy everything if I have the money in hand. Ive gotten messed up with a credit card once and never again do I want or care to get one again. However the services and businesses are within the media / entertainment industry so they're KNOWN to be high prices! I know once I decide to get ppl on board (ie employees) I want to pay them well, but when pay comes in to play how am I supposed to compete with others competitors. Charging is something that I absolutely need help and advice on!! I feel like after watching this a few more times, something will click and help me establish a pricing structure / plan that will beneficial. Ive since invested thousands of dollars in to purchasing everything thats needed however I'm just sitting on all the equipment, hardware, and knowledge all bc I can not grasp the concept on how to price accordingly / competitively. And whats the worse of all is i believe 100% in the product and see so much value in it and within the amount of knowledge I have it seems like it'll just be a bit overwhelming for the client to understand and see the value that is being offered.

[@moleculemarketingllc]

Don't sell websites. Sell solutions to the problems the business has.

[@brents2500]

Absolutely love this. Some of the best advice I’ve seen on the topic. Know your worth and never sell yourself short.

[@koendertkellner1840]

This felt like a peptalk, and I appreciate it greatly! You're awesome bro!

[@linjianru]

I have been working as a freelancer for a really long time (about 10 years). And the one thing I learned is that a lower price is bad. An average price is bad too. I agree with that lower price makes you have more clients sometime because the most people like cheap price. But the truth is that you are so busy and you don't earn much money as you expected. It sounds wired because even you have more clients but the price is not so good so you don't have enough resources to deliver good result (only average level, or you are not earn money but pay money to the clients). And what makes the life harder is because you are so busy you don't have a lot of time to thinking and improve yourself. That's the worst experience that I have ever made. You totally changed my mind. Thank you so much!

[@Mohammd-7]

Absolutely right, as freelanced, I give myself a monthly salary if am going to work with a client, and then I divide the amount if the work will take a day, or a week....

[@MaryTanHooper]

True but we must also make sure our work actually deliver results for the client. Then we can look at all the factors and price it accordingly , setting a bar for ourselves.

[@felixrohde6585]

Thank you for this video Ran.

[@elanemu9340]

I haven't totally started freelancing but thanks to this video. Actually I just recently landed on your videos because I decided to learn deeply about Web designing. Since I already have knowledge in designing I just want yo know further about the rules and principles and how to land a job in web design. I hope you create more videos bout freelancing so people like me who can't afford enrolling to online courses will still not be left behind. I think my journey starts here.

[@FluxAcademy]

Check out our recent video "How to freelance as a web designer."

[@Benga-Eno]

אין אתה פשוט אלוף 🙌🏼

[@rocheuro]

totally agree. but you have to have a good reputation, and very high quality of your work and portfolio. and this way you dont look up for clients but clients waits in a cue to make sure that you - the best designer will make their branding.

[@rocheuro]

it is also dependent on country and actually the local businesses. some countries cannot afford 10k usd rebrand, but of course you can find brands that will pay 20k in large cities.

[@stephh_nz]

This was the BEST video I have EVER seen on pricing! 👏👏👏 I have really struggled with accepting all the “advice” on market value vs hourly etc and have been following my own rules on it instead!

[@FluxAcademy]

Thanks Steph, means a lot

[@endtimeprophecy6746]

Thanks a lot for this video Bro you just helped me a lot. Am a freelance designer and this is just the best value video

[@CyberShark97]

Good message but I think there wasn’t enough emphasis on the fact that (just like the example of the house) if you want to diverge from the market you HAVE to be vastly different from the rest of the market, you have to be so unique that nothing comes close and the extra price is worth the extra value to the client. You cannot logically and ethically have someone pay three times the price they would have payed with someone else for 1.2x the value they’re going to get. Be confident in your work, yes, but be realistic about it too. If you need to start with normal prices do that and when you have developed your work and expertise up to the point in which you are actually offering something more or different from anybody else in your target market or area, then charge for that. The best way to be confident in your own work is to offer objectively good products or services, with results that can be measured and felt.

[@victorlunaguitar]

I’ve experimenting fixed pricing with a well defined design process and it’s been working good so far. What I don’t really get is how freelancers can charge “agency prices” and make sense of it in the clients mind.

[@FluxAcademy]

Some clients value agencies, some clients value freelancers, has nothing to do with price

[@victorlunaguitar]

@@FluxAcademy Gotcha. When I was practicing value based pricing some clients questioned why I was charging the equivalent of an agency. However, I was maybe being compared to a low cost agency then. Gotta try more value based pricing this year.

[@busterjay64]

Another gem 💎, thank you.

[@71413018]

THANK YOU FOR THIS.

[@TheTonyCostaShow]

BEST EXPLANATION OF PRICING EVER.

[@ronfya]

Very true Ran. Thanks for the reminder. The next step is to dig into HOW TO IMPLEMENT this choice. And that opens up conversations on positioning ;-) And that's a very tough subject to implement for creatives.

[@LeatherClass]

Fantastic advice - well put. You've articulated these ideas so they really hit home. Great job.

[@aaronrolston]

Man, this is killer advice! Easily one of your best videos yet. ✌🏼

[@felixwagnerfromamaaze]

I am a fairly new freelancer and when it comes to pricing I always feel like having to give a client some sort of discount. I am very bad at just putting a number out there even if I know I underpay myself and probably could have asked for more.. I am honestly just afraid of going out of business. What probably happens though if I undervalue my work, my clients might undervalue it as well and might even be inclined to look elsewhere because they want a premium product. I still have to find that balance...

[@hemiphillips786]

Is it the value you put on your work? Is it the price someone is willing to pay? It’s both!

[@moleculemarketingllc]

No. Solving the client's problem is the value.

[@math123881]

Thank you so much ran! Huge eye opener for me!

[@FluxAcademy]

Glad to hear!

[@umangasarathchandra717]

great genuine advice. thanks

[@lm2082]

Deep and great information ❤

[@chrisyoungdesign1342]

Pricing is the toughest topic and market value is irrelevant as you would be valuing yourself, the project and what you can offer for the value to the client/s In retrospect to other designers taken in consideration experience, execution , creativity through to technical expertise and advise.

[@annafilou]

This has been enlightening. Thank you!

[@hseindesigns]

Invaluable advice

[@webguymike]

This has got to be a Top 3 Video of the Year for all freelancers. Epic Ran, EPIC!

[@excmax]

Finally! Some honest and eyes-opened words! 👏

[@justus4711]

This was so good Ran.

[@ivanmakesart]

hey Ryan your courses are being given away for free on downloadpirate

[@thesunnymishra]

But What beginners should do? Who didn't work on client project aka starting out and pitching first client?

[@inhanasmind]

I think you can take a couple of first clients based on the ”formula” to really see what you can do and who do you enjoy working with. First clients are like a test for you. But when you see that you can deliver results then it's all about what Ran said in the video.

[@voltairepabustan]

Such great information!

[@meaganmccomiskey5337]

Awesome video Ran! Thank you :)

[@brandinglab100]

Well said

[@wemote]

Finally, this feels right. Thank you, Ran!

[@vishwars224]

Totally Impressive channel ❤❤

[@mosesnandi]

Great video. However still it doesn't answer the question...what if the client had way more budget above what you proposed? What if the value to them is way higher compared to what you predicted. You coming up with the number even if that number is high...still doesn't maximize on these types of clients or scenarios. Do you think 100k website for a company like Nike is a high price? Not at all. But how do you go go about navigating that...? Pretty hard in my opinion...Would love to hear your thoughts

[@epicsseven7686]

The best way is to look at some well established web developers and look at their figures, and go from there. What client may value as higher is unpredictable. The most important thing is. You know what the value is worth.

[@FluxAcademy]

Do you think the person in the supermarket should raise prices if your budget for tomatoes was higher? Not everything needs to be maximized, and if you feel like you’re not charging enough, raise yourself prices

[@mosesnandi]

@@FluxAcademy I mean it’s no difference if you think about it. When you tell people not to leave money on the table isn’t that what you mean? Maybe “maximize” isn’t the right word to use. But if a client was prepared for 10k and I only quoted them 2k...it doesn’t sit right, does it? Even though the 2k might be higher compared to what I was charging previously. Ok...the numbers are just examples but you know what I mean

[@epicsseven7686]

@@mosesnandi I feel like you're over analyzing this. If client is expecting or preparing to pay more than what you have in mind. Then it's time reevaluate your overall pricing. Perhaps the client has paid that price before and is expecting that. Or. It could also be that the client is trying get it for thst price, which to them is cheaper than what they've paid to the previous designer. My advice would be to talk to other web designer, to get a feel of what they charge. And how from there.

[@destroyonload3444]

A piece of the puzzle is VISION. I have envisioned that I want more people to experience what I have to offer than what I alone can provide. I know that when I hire certain people, they may not have the same aspirations, but want to do extraordinary work at certain tasks. The only way to scale to build my vision is to have an exit plan from the start, abstract myself, build a unique value proposition, and charge the rate required for my time (my company's time). If a client wants to pay 10 - 20% of that rate; that's fine: we were never a match or they made a terrible choice based on price alone which also means they weren't a match. I'm not interested in working with the bottom 20%: trust me from business experience...they will be 80% of your problems. Late payments, no payments, ridiculous demands outside of scope, unwarranted bad reviews, condescending tone from limited mindsets. The list goes on. Do yourself a big favor: value your time and your vision and other people will too!

[@MarkNarusson]

Good advice Ran. But just to throw this thought in. Great service and quality design are givens, they are not something that makes you stand out and allows you to charge more. You defiantly need to offer something different and special that makes that client go wow

[@nazmulalamnazim]

I liked the Real Estate example. It make sense now :D !

[@nabilc1667]

I follow Chris Do too. One of the best KZbinrs that talks about the design of business 🔥

[@andresochoa3040]

Oh man! Wonderfull información about pricing

[@shyamganesh21]

Who tap the notification when it received ❤️😍 because flux always says useful tips

[@amongdoomers9464]

entha ooru thala

[@raddad7188]

100%

[@DesignDen673]

Dear Ran, How do I know if I am worth the money? I might think I can charge $10k but you may think my work sucks..

[@akshatsadhu]

The india thing really hit me hard. I used to think the same but now i guess I'll charge higher in india too😃. thanks man

[@pranavchaparala]

6:30 This. I have no words fo this.

[@pranavchaparala]

8:58

[@alexhartan]

So, following that train of thought, should we publish the prices on our website?

[@epicsseven7686]

I would say, no. My reason. That person's project is going to vary from the next person. You don't set yourself up, where you underprice yourself.

[@Go_Places]

I was asking myself the same question, and i am thinking "starting from" pricing makes more sense. Yes, as a designer u dont want to limit yourself but u usually have your "lowest" on mind. Now, think from client's perspective, the one that comes NOT by recommendation. Client is searching on web, likes your portfolio... and a few other guys.. When he sees at least some number on your website and decides you are affordable, i bet he ll give his lead to you first. What are your thoughts?

[@epicsseven7686]

@@Go_Places it depends. You can get a good client, based on your prices that you feel are justified. Where they will pass word of mouth, because of your quality. Don't sale yourself short, in attempt to play safe because you fear that you will lose the potential client. Some clients will back away if the prices are too low. Due to fear of poor quality. It also depends on whom are your target.

[@FluxAcademy]

The reason I don’t publish prices is because unlike bags, websites are custom and their complexity depends on multiple factors. I will state that a typical websites with me costs $10-30k

[@epicsseven7686]

@@FluxAcademy exact same reason why I don't put prices my website

[@theimstorm689]

Really good!

[@mosesnandi]

Would you please share that link of the podcast you listened to from Chris Do and Mike?

[@tanujpatra]

"In India all clients are cheap" this is the trap I'm trying to escape, but kinda feel like nothing is working. We talk about delivering value with our social media and other platforms, but can you explain how to and what type of value to provide to actual clients not design community! Thanks

[@kikikow]

When I share the price I build a narrative first. Let's say the client wants a logo. They think of the tiny cute image they'll be using on social media or website.. I explain they are buying identification, providing an element of recognition to their audience, I include this specific design in a wider imaginary in terms of branding and it makes them understand, cause they see beyond the one specific design they are purchasing.. It also builds trust with your client, as it shows you understand the vision they have for their company/etc.

[@maddisonmiles2151]

Then you have Fiverr people be like " I will hack the British Ministry of Defence" for $15.

[@georgegogarten3593]

When are the Flux Academy Courses going to be available again?

[@huckleberryfinn8795]

Market price DOES matter, but if you're a good salesman, then some people and companies will pay over market price.

[@paulsalele3844]

Great video, in economics we call this monopolistic competition.

[@progressisbeautiful1541]

Your story is completely to the point. When you say low price, you loose respect.

[@rubybuby3232]

I think that friendship is much more than just a few meetings... I can say that Arnold Schwartzenegger is my friend because I meet him few times and we like each other. Are we friends?

[@madness5693]

That's deep

[@j653vup]

helpful

[@oldsarge52]

finding clients that pay a competitive rate is finding a needle in a haystack.

[@adityamittal4357]

alright the price of my course just went up from 2000 to 10000.

[@MichaelQuiapos]

Ran, the way you structured your argument is confusing. This I notice with most of your videos. At the start, you dis on Chris Do and Michael Janda. Yet towards the end you somehow maybe without knowing fit what they are saying all the time. Do you know the difference between a freelancer and a small business owner? there is an important mindset distinction. Don't get me wrong, I like your style Ran. You're one of the few ones I shadow.

[@FluxAcademy]

I didn’t dis anyone, and say that I have tried helping with the same methodologies myself, however, this methods are not the fill picture, which is much simpler, yet much harder (since it requires courage)

[@proudlyindian9113]

👍

[@piotrkasperski382]

you should iron your tshirt

[@MrInsider33]

You really think Gucci just "decides" goe much to charge? There is lots of market research and strategy involved

[@ainaopeyemi339]

I don't agree with this, life is so much complicated

[@abdulmanan5030]

♥️♥️

[@kasforai]

The problem is dumb client's can't tell always the difference of a $500 website vs 3000

[@FluxAcademy]

Am I dumb for not seeing the value of a $20k Rolex? Value can be very subjective.

[@kasforai]

@@FluxAcademy Well I know some rich people buy Toyota for example.

[@40Ants]

Great talk!