Value and Pricing

Pricing seems one of the most contentious business issues that writers face, if posts on every writing board I've ever seen are an indication. People want to know what others charge, what they should charge, how to bill it, when to bill it, and in what form the invoice should be.

Unfortunately, while the information someone gains could be useful, it often isn't. Pricing is an individual thing, not a regurgitation of all that the market will bear, because what it will bear for one it will deny another. A large company in the high tech industry is likely to pay significantly more for a press release than the mom-and-pop local business, largely because they will require a significant level of experience as well as relevant knowledge on the part of the writer. A corporate writer experienced in navigating the regulatory requirements of the SEC will command significantly more to write an annual report for a public company than one with less experience. That's because there is a difference in the value offered.

Price is the compromise between the value a writer can offer and the value the client perceives. You start with your own hourly price and then do research to try and find what equivalent work from writers with equivalent background and experience for similar types of clients might command. That tells you if there is additional you *could* charge because the client is likely to expect it. Then you layer on the specific value that you bring. For example, I've charged companies $150/hour and more at times to write marketing materials, but I had significant experience in the specific type of work and could bring a lot in specialized knowledge of the customers and products. I can think of a time that I literally got 20% more than another experienced writer because of a specific value edge.

But there is another part of the value equation - what value you receive. Value is more than the money you receive. I've recently embarked on a large project (not the speechwriting I previously mentioned) for less than I might ordinarily charge, but then I'm gaining a credit in a particular type of project that will let me win more bids in the future and charge more. Don't just look at what the market will bear when pricing a project. Consider the value you offer, the value you gain, the money you need to make for the time invested, and market realities. Then you can intelligently use the feedback you get from other writers.