Create value for your customer
Interview with Peter Bosman, owner of Publimix
Our guest in this podcast is Peter Bosman, owner of Publimix. He has been the publisher of the Prices & Rates Guide. Jacqueline will talk to Peter about one of the most important questions for freelancers: How do you determine your hourly rate?
Rates change continuously depending on the general economic development and trends in the various branches. A good example of this are the developments in construction. In construction, the majority of employers have stopped hiring salaried staff. Instead, they hire their staff as self-employed persons. As a result, construction workers' rates fell by around 10-15%. Rates remained low during the crisis and only increased again after the crisis.
As a result of the digital revolution, rates in the web and game development sectors have grown sharply, while the increase in web shops has led to a decrease in retail rates. In general, professions with a lot of specialism have more room to increase rates.
The price you can ask for one hour of work is partly determined by yourself and partly by the market. The more you let the market determine your price, the more you are left to what other people in your industry demand and what is paid on average in your industry. It is therefore important that you consider whether you can increase the value of your work for your customers, so that you can rise above the market price. It Prices & Rates Guide strives to help freelancers in this.
In order to create more value for your customers, it is especially important that you listen carefully to your customers and ask clearly what they want. An example of this is painting a house. If you accept an assignment for painting, you have two options. You determine a fixed amount for the entire work and present it to your customer, or you ask questions to get an accurate picture of the customer's wishes: “What is important to you? Do you still want to have a good home in 5 years? Do you want us to make your home more valuable? Do you want us to preserve your home? ” The more you know about the wishes of your customers, the better you can negotiate.
Finally, Peter gives advice to starters: The most important thing: do not bet too low! Better bet a little higher and drop your prize afterwards. Ask your customer how much they are willing to pay for your work and what their budget is. They are not going to share this very easily, but if you ask at a suitable time, you will find out.