When deciding on pricing strategies, freelancers often find themselves struggling with the seemingly moral dilemma of whether or not they should charge larger clients more than their smaller clients. Every client deserves fair and equal treatment and just because the client has a more money doesn’t mean you are entitled to charge them more.
However the more you think about it, the more you start to realise that in fact, charging big clients more, is not actually taking advantage. Bigger clients are likely to have a number of other factors at play that make working for them more expensive. Here’s why…
When you deliver work to a client, they are not only paying you for your time, but also for the right to use your work for their business. Essentially they are paying you to hold the copyright to your work, whether only for a period of time or as their intellectual property. A large brand or company means that they will be displaying your work to a far larger audience. This means that you should up your price to compensate for the additional value that you’re adding to their business.
Scope of the work
Often with large clients, scope creep becomes a real problem. As bigger clients will often be using your work in more applications than smaller clients, you will have to consider a lot more elements when completing work for them. This often makes a seemingly simple job, far more complex and time-consuming. Charging more means that you won’t resent the client when they start requesting extra changes or additional variations.
Working for large companies often means that you have to jump through a number of hoops before you even secure the job. Eventually, when you do land the job, your rates need to reflect the additional time spent on the pitch process and adhering to the requirements of your new client. Essentially, the additional administration work needs to be accounted for in your rates.
Big corporates are renowned for having extremely strict payment policies and requirements. Becoming a supplier for a big corporation almost always involves a great deal of paperwork on the part of the freelancer. This often leads to complications and late payments, as they have very limited scope for financial flexibility. Make sure you charge enough to make it worth the wait.
Big clients come with big expectations. When getting into business with a large client you’ll soon see that they not only demand top-quality work every time, but also expect you to be available day or night. They expect regular communication, and often prefer face-to-face meetings. These extra requirements mean more time spent servicing the client, which in turn should translate into higher rates.