Price vs Value - How Much Should Writers Charge?
Price vs Value - How Much Should Writers Charge?
Writers often reflect on whether they are charging enough. The old chestnut of how much writers should charge, and how much the other party is willing to pay is an ongoing dilemma. Let’s leave aside the should you write for free debate for the moment.
It may seem to be playing with semantics to say that price is not the same as value, but it is a useful distinction to draw when determining what you are willing to pay for something, or what you want/need to charge for something. In this sense, price is a component of value, not the other way around.
Why do you go to your favourite restaurant? It’s not always about the cost. Maybe it’s the great food, the ambience, that you feel welcomed, or perhaps it’s the outstanding service and the reliability.
Another restaurant closer to home may have the same type of food at a cheaper price. Why do you choose to spend your dollars at the first restaurant? It’s because they value add. They give you something extra. You feel you are not only getting value, but you also have confidence in the quality of the experience and the consistency of the outcome.
The Value Added Writer
What are you doing to give your clients value? Do you offer a value added writer service? Be clear in your own mind about the difference between price and value. This will help you be more realistic about setting the prices you charge your clients. Value adding is not about doing more for less or even for the same price. Value adding is giving a service which is unique to you, and that cannot easily be duplicated by the writer down the street. This is part of your branding strategy.
Value adding can also be about offering services which other writers don’t. The client may originallly come for one service, but finds you can also help with other writing or business related needs. An example of this is the web designer who also offers web maintenance, and perhaps web hosting. He may also have a mutual arrangement with other professionals such as marketers or writers whose services he can subcontract. There are many opportunities for savvy writers to offer value added services. I’d love you to share your ideas or questions about becoming a value added writer. How does this work for you or what opportunities do you see?
Barbers, Writers & Business
There is the old story of the barber who had a very good business giving $15 haircuts. One day another barber set up across the road from him and put a sign up in the window boasting “$5 Haircuts Here.” The first barber did his sums and knew he could not compete on price. His solution? He countered with his own sign - “We Fix $5 Haircuts.”
Now there’s someone who knows the difference between price and value. 
Excellent post! This hits close to home since I just went through the process of publishing my rates on my blog. Of course, I know what I usually earn. Publishing it was much harder than I expected, though. This post definitely helps.
No MyBlogLog account? Hm… OK, than I will abuse your blog to post a link to a job opp. contest on my blog: Writers Wanted. Don’t hate me! I really need a good writer for this project, and I know you are one.
Hi Laura - Value adding is also about identifying, establishing and promoting your point of difference. Maybe I’ll write a post on that too. Pleased to know that this affirmed what you are already doing.
Mig - You are most welcome. I don’t hate you at all. In fact, I will be applying. I’ve left a comment at your blog
But it is quite hard to tell the clients why we charge for that price. They complaint we charge too much (but they don’t when we charge too low!).
Damn client, wish you understand what I am offering. :p
Yvonne,
You make an excellent distinction between value and price. There are huge differences in what writers charge, and the writers who earn the higher rates have to offer more value.
Writer’s Market has a guide on what to charge for various kinds of writing and editing at http://www.writersmarket.com/assets/pdf/How_Much_Should_I_Charge.pdf
For example, in the Internet category, “Web page writing” has this range - Low: $30/hr, $100/project, or .35/word; Average: $83/hr, $1,251/project, or .86/word; High: $150/hr, $7,000/project, or 1.25/word.
In book publishing, “Content Editing (trade)” has these ranges: Low: $19/hr, $1,000/project, or $3.75/page; Average: $49/hr, $7,988/project, or $7.50/page; High: $125/hr, $20,000/project, or $40/page.
I usually charge by the hour since most of the book projects I work on require a LOT of editing, and it’s difficult to determine how long it will take. When I do agree to a project price, I usually end up underestimating the time required and make less than my desired hourly rate, which is higher than Writer’s Market average but a lot less than the high :-).
Obviously, a writer has to decide whether to charge prices at the low, average, or high level based on experience, desired income, skill, and market factors. My hourly rate has always been above average, but it took several years before I reached the point where I have all the work I can handle and a waiting list of clients with books to edit.
Hi Lillie
Thanks for taking the time to share such useful and practical information - much appreciated. I will study it closely, and I’m sure others will too. Your own experience of charging is interesting and informative too. Thanks again for sharing your research and insights.
Excellent article, Yvonne. I’m going to refer to it on Home Biz Notes because, I feel, the advice here can be applied to businesses other than writing.
I know the prices of my writing service is way, way lower than many professional writers. But it’s the only best way I can think of to get clients to stick. But I’m hoping that someday I can raise my rates.
Alfa - You write some great posts about being on the ball with money making opportunities. I’m sure it’s just a matter of time. Setting prices is very difficult, but maybe you can raise them for a job that you know is your specific area of expertise as a trial, just as a start.
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