As a freelancer, how do you determine your pricing - and as a client, how do you assess the value of a freelancer's services?

As a video editor my work depends on various factors, such as the duration of the video, the type and complexity of effects required, and the specific category of the project, whether it’s a wedding video, motion graphics, or a YouTube video. Additionally, the time needed for editing, current market rates, and the client’s level of experience with video projects also play a crucial role in determining the approach and pricing.

I quote my clients based on my satisfaction and yes I always check my satisfaction first that's why I can show my creativity worry-free. 

If you are passionate and professional you should focus on work quality and charge the price where you agree 

I think the hardest part here is the international factor. My currency and life style is different to other countries or continents and some customers could not afford my European pricing. When I increase my prices there are people saying it's too expensive, and others tell me all the time that my prices are too low for my good service. Finding a good balance where I can feel comfortable and not sell below value is not as easy as it seems.
A service that is made individually for every customer (I am writing songs) shouldn't have a discount price.
The quality and effort should be valued by the customer also by the price.

I struggled with pricing my work for a long time. I used to think that if I charged more, no one would buy from me. Back then, I charged less than $20 per web page. I know, I know... But that’s not the case anymore.

Here’s what I’ve learned after half a decade of working for myself:

When pricing my work, I start with a simple formula:

Real costs (hardware, software, rent, bills, office expenses, salaries, taxes, and the time I spend studying) + profit I want to make.

It’s basic, but it works when I’m unsure. The key is to ensure I don’t lose money on projects. I’ve made that mistake before due to poor planning—it’s not a great experience.

Another approach is to set an income target for the year. Then, figure out how many clients you can realistically serve within your available time. Divide your target income by that number to get the ideal amount to charge per client for a standard project.

You can break it down even further:
Take your yearly target, divide it by 12 (months), then decide how many projects you want to complete each month. Divide your monthly target by the number of projects. This gives you a standard rate per project to achieve your goal.

There are other pricing methods, too. One I love is Value Pricing, but it’s tough to implement on Fiverr, so I won’t cover it here.

I read somewhere that the most important thing is to offer value that’s worth more than what you’re charging. If you do that, you’ll always get paid.

This idea ties into how I think when I buy services. I want to get more value than what I’m paying for. For example, if I have $1,000 for a project, it needs to bring back at least 3x that amount to be worth it—1x to cover the service cost, 1x for a future project, and 1x as profit.

This isn’t about taking advantage of anyone—it’s just how business works. We all want to make money, and anyone who says otherwise is lying. With that in mind, cheap isn’t always good if you care about quality and results.

When something costs too little, it often means corners are cut, or you’ll get cookie-cutter solutions. You want to work with someone who provides a solution that will actually make you money and save you time.

(Imagine waiting a month for a service, only to realize it doesn’t help you make money, and now you need another month to fix it. Not fun.)

For a video editor, that depends upon various factors:

1. Duration of video.
2. What effects are required for the video?
3. Type of video e.g Wedding Video, Motion Graphics, YouTube video etc
4. How much time do you require for this?
5. What's the current market rate for this?

Check whether your client is new to this or he has some experience before.

When determining freelance pricing and assessing value, I follow a structured approach based on my fixed hourly rate. Here's how I calculate it: 

Step 1 - Estimate Project Duration: I carefully evaluate the scope of the project and estimate the time required to complete it. This includes all stages—planning, execution, revisions, and final delivery. 

Step 2 - Multiply by Hourly Rate: Once I have a clear estimate of the project duration, I multiply it by my standard hourly rate to arrive at a base price. This ensures I’m compensated fairly for my time and effort

Step 3 - Add Adjustments: Depending on the client and the complexity or urgency of the project, I may add extra charges.

1. For example :Client Factor: High-demand clients or businesses with a larger budget may require a premium rate to reflect the value I bring.
2. Project Complexity: A project requiring advanced skills, tight deadlines, or extensive revisions may also incur additional costs.

Step 4 - Value-Based Considerations: Beyond just time, I consider the value I’m providing to the client. For instance, if my work significantly contributes to their business success, I may adjust my pricing to reflect this added value.

This method ensures my pricing remains transparent, consistent, and tailored to each project, making it fair for both me and the client. By communicating openly about these factors, I also build trust and align expectations from the start.

Determining Freelance Pricing and Assessing Value

Pricing your services as a freelancer or evaluating a freelancer's worth as a client is both an art and a science. It’s about balancing market rates, perceived value, and delivering results. Below you'll find seperate hints  for Clients and Freelancers. So, let’s break this down:

For Freelancers: How to Determine Your Pricing

1. Look for Role Models and Analyze Their Rates
   Start by identifying successful freelancers in your niche who inspire you. Look at their pricing structures and services. Do their rates seem feasible for you, considering your skills and experience? Pay attention to their unique selling points (USPs)—the little extras they offer that make their services stand out.
   
   For example, a graphic designer might include multiple revisions or a 24-hour turnaround for premium clients. Think about whether you can provide similar extras and whether those align with your working style.
    
2. Do the Math
   With a general rate in mind, calculate whether this pricing aligns with your desired income. Let’s say you find a comparable freelancer charges $500 for a logo design project. If the project takes 10 hours, that’s an hourly rate of $50. Ask yourself:
   
   Is this rate worth your time and effort?
   Would it cover your expenses and contribute to your financial goals?
   
   Note for Beginners: If you’re just starting, you may need to price your services slightly lower to attract clients and build a reputation. This is common on platforms like Fiverr. However, have a clear plan to gradually raise your rates as you gain reviews and experience.
    
3. Consider Premium Pricing
   While competitive pricing is a common strategy, there’s merit to targeting clients willing to pay premium rates. Higher prices can create a perception of higher quality. A fascinating example comes from Puma’s brand strategy. Once sold as cheap discounter shoes, Puma rebranded with sleek designs, a premium pricing model, and repositioned itself as a luxury sneaker brand. The result? Increased sales and brand prestige.
   
   How does this apply to freelancing? Offering premium services means:
   
   You must deliver on the promise of quality with exceptional work.
   Build a portfolio that reflects this level of excellence.
   Gain reviews that emphasize the superior value and professionalism you provide.
   
   This strategy works well when paired with thoughtful, client-focused communication. Surprise your clients by exceeding expectations. For instance, include an unexpected bonus—a small but impactful extra feature—that aligns with their goals.

For Clients: How to Assess a Freelancer’s Value

When hiring freelancers, clients often wonder how to determine whether a rate justifies the service. Here’s how to evaluate their value:

1. Look at Their Portfolio and Reviews
   A freelancer's past work and client testimonials are key indicators of their abilities. Do their deliverables align with your expectations? High rates often reflect years of expertise or specialized skills, so a strong portfolio justifies a premium.
    
2. Consider the Extras
   What unique elements do they offer? Do they include services like rapid delivery, unlimited revisions, or tailored advice? Freelancers who understand and anticipate your needs are worth the investment.
    
3. Think Long-Term
   Sometimes, paying more upfront yields better results over time. High-quality freelancers deliver work that requires fewer revisions, saves time, and contributes directly to your goals. If you can manage to keep working with a freelancer for a long time, they will know what is important to you—and to your customers. They are not just a cost; they’re an investment.

A Balanced Approach

For freelancers, pricing is a journey of self-awareness and market understanding. Start by researching peers and building your reputation, but don’t hesitate to embrace premium pricing if you can back it up with stellar results. For clients, assessing value means looking beyond the price tag—focusing on skills, trust, and the freelancer’s ability to support your goals.

In the end, pricing is a dynamic process that evolves with experience and market demands. Whether you're a freelancer setting rates or a client evaluating them, clarity and communication ensure both parties find value in the collaboration.

If you have any questions, please feel free to get in touch with me

As a freelance translator, it is very important to determine the price for a job.
There are many variables to take into account, but in summary, this is the method I usually use.
I try to get all the necessary information from the client so that I can make an offer in line with their needs.
When calculating the price of a project I take into account the length, the complexity of the text, whether there are any specifications from the client.
I also assess the post-translation: for example for the translation of a website, I usually do a check after the translation has been uploaded to the site, so as to verify that everything is correct.
Another very important factor is time: is the customer in a hurry? Does he or she have no defined timeframe or preferences? This has a big impact on the final price.