PSA: I chose a flat rate pricing model over hourly and my income actually dipped for 3 months

I switched my web design work to flat rate packages back in January thinking it would be simpler for clients but after 3 months I realized I was undercharging by about $500 per project and now I'm slowly adjusting my rates back up - has anyone else had to undo a pricing choice after trying it out?

3 comments

3 Comments

sanchez.julia9d ago

Wait, you actually went three full months before you realized you were losing $500 per project? That's a whole different kind of patience than I have, I would have caught that by the second or third job and freaked out.

the_lucas9d ago

Man, that's rough... I feel for you @sanchez.julia. Three months is a long time to be losing that kind of money on every job. I had a similar thing happen with my logo design packages last year. I priced them too low because I was scared of scaring off clients, and it took me like four projects to realize I was basically working for minimum wage. By then I had already booked a few more at that old rate and had to eat the loss. It's a hard lesson, but at least you caught it now instead of a year from now.

adam4149d ago

And honestly @the_lucas, the worst part is when you finally raise your prices and some of those old clients get mad about it... like they expected you to keep working for peanuts forever. I've seen it happen at the store too with contractors who lowball themselves early on and then have to explain to customers why their rates suddenly doubled. It's a tough spot to be in because you don't want to burn bridges but you also can't keep working for nothing. Three months of that must have stung pretty bad though...