I want to start by saying that pricing is one of the most sensitive and tricky subjects of
any kind of copywriting. The last thing you want to do is send your boss, or any
other human being for that matter, the invoice for the project. They might just say no.
Inevitably, there will be a misunderstanding somewhere along the line about some aspect of the work. You might not have charged enough, or you might think that the writer owes you money for some reason. Maybe you agreed to do the project for a certain price, but the writer charged a bit more. Who knows, but it’s best to avoid these kind of situations altogether. You want to make sure that everything’s been accounted for. That the writer owes you nothing, and that their own understanding of the contract is in line with what you agreed upon.
Determine The Overall Project Budget
As a copywriter, and as someone who’s worked in the industry for a while, you know that you’ll eventually be asked to provide a quote for a project. But getting a clear picture of how much you actually need to charge is often tricky. After all, you don’t want to inflate your quote simply to make a profit. But at the same time, you don’t want to under-bid either.
To avoid any surprises once the project is actually underway, it’s best to establish a budget upfront. This will help you determine how much you can spend on the project, what your margins are, and how much you need to charge. Setting a budget doesn’t mean that you have to limit yourself to what you’ve set. But it will force you to consider how much you can spend, and how much you can afford to spend. It might even give you a better idea of what not to bid on a project. If you’re unable to spend what you’ve set as the budget, then there’s probably not much point in submitting a proposal.
Know All The Details Of The Project
When you get the go-ahead from your boss to work on a project, you’ll be presented with a document that contains a lot of information. This is the project brief, which will contain everything from the objective of the project to the
name of the client. At a minimum, you’ll need to know the business’s website, social media handles, and email address. In some instances, you’ll need to know
the competitors’ websites, as well as product features, pricing, and any other information that might be relevant. All this
information is important and can make the difference between a successful and an unsuccessful
project. Knowing as much as possible will put you in the right mindset when starting the project, and it will give you an
idea of how much you need to charge. Not having all the details could mean that you’ll be sent on a wild goose chase,
asking questions of the people who work at the company, when in fact, they might not even be able to help.
Create A Margin And Expense Sheet
As your project progresses, you’ll need to create a margin and expense sheet to keep track of your
project’s expenditures. A margin is what you’ll earn after you pay your editors, proofreaders, designers, and other contractors.
Creating this document will help you to avoid any financial surprises once the project is finished. If you follow
these steps, it’s highly unlikely that you’ll ever get something wrong on your expense sheet. However, it’s still
important to keep in mind that you’re responsible for what you spend, and how you spend it. You should only account for
the expenses that are relevant to the project. These sheets are pretty useful in showing your bosses, clients,
and other individuals who have an interest in your work that you’re being responsible, and that you’re paying for
everything that you need. They might not understand what some of the entries on your sheet mean, but it’s
essential that you’re keeping track of your expenses.
Determine The Overall Structure Of The Price
Once you’ve set the project budget, it’s time to lay out the structure of the price. This is going to depend on a number of variables,
such as whether the project is a web design project or a social media campaign. Not every project is going to
be created equal, and you might need to adjust your pricing accordingly. In general, you can use these four
basic cost-plus pricing structures:
- Hourly Rate PLUS Materials (Most Common)
- Cost + Materials
- Cost + Hourly Rate
- Mixed Bag
The first two are pretty standard, and you can usually find examples of these structures in any copy contract. But the last two are a bit more
creative and can be used to make a point, or to differentiate yourself from other copywriters. For example, maybe
you’re a designer who needs to charge more for a web design project because you need to buy expensive tools and
software to complete the project correctly. Or, maybe the project is more complex than you anticipated and
you need to charge more because you don’t have the time to finish it within the
time frame you’re working under. Or maybe you’re a copywriter who’s pitched an unusual idea to a client, and
they liked what they heard, but since it’s so far out there, it takes you longer to get it done than you
think it does. The point is, these structures can be used for many different reasons, but they all have one thing in
common; they place more emphasis on the output than the input. In other words, what you charge for is going to
depend on how much effort you put in, not how much material you have to work with.
Consider All The Non-Monetary Considerations
There are a number of non-monetary considerations that you need to bear in mind whenever you’re
developing a pricing strategy. These include;