Remember, when you price something think about how long it would take to learn it on the fly, something you inevitably did on your own time before committing to the project and something we often overlook when setting our rates.

We are not only creating solutions but opportunities for our clients. Opportunities to maximize their own time and effort to increase their bottom line. I always ask a potential client what they are expecting to accomplish in terms of new sales, revenues and profits. In case it’s not new sales I will investigate to find out what value this will bring to them. For example will it save them time? If so how much is there time worth? Once you both are in agreement of the value it is easier to see the cost as a good investment.

I have a similar system for pricing as what Brett Crockett said above. I have hourly rates that I use internally to determine the baseline for break-even, then evaluate the client (do they require lots of attention/changes/meetings, etc.) and the scope (will it easily inflate, what’s the visibility, how will this project affect future business) and eventually come to a “feels right” price.

It’s a tricky process all around, but overall I agree with value-based pricing rather than hourly. If both parties agree to the value, it’s win/win.

I finally settled on a hybrid pricing model, where the product’s value and time are both evaluated, and a quote is created with both in mind.

If the scope of the project is clearly defined and the client and freelancer both know what to expect, I’m comfortable combining the value I personally assign to the end result with the hours I expect it will take to reach that result. The average of the two provides a point that I can then quote to the client and be fairly certain we’ll both come out ahead.

the client knows what to expect and to budget for, and I know that I better be on top of my game to meet my quote.

Another thing to consider- The printers I’ve worked with generally factor in over (and under) prints. They let their clients know up-front that because of various factors, the delivery will be anywhere from -10% to +10% of the quantity ordered, and that the customer will be obligated to accept and pay for that quantity.

It might sound a little weird unless you understand that the printing process, similar to creativity, is a combination of art and science, rather than a science alone.

With that in mind, the quotes I provide include a price range, not a final number. If unexpected changes are made or the scope creeps a bit, we can factor that in and charge a little more for the extra work. If things go smoother than expected and the client doesn’t call at midnight with a new idea for the layout, the price can be tweaked in the other direction, and both parties benefit.