So whats a brother to do with a sour economy and fewer bookings?
Many would counter by lowering hourly rates to get that volume back. I'd be lieing if I said I have not done this because in the past, I have.
I thought long and hard about it this time too but then thought about what a price change of any kind does... which is promote.
Then I thought about my needs and realized, man that's going the wrong way so with little to lose, I did the opposite and RAISED my rates!
Go figure. It promoted, created intrigue and I am booked again... and at a better rate.
Lesson here is don't panic, don't undersale yourself and do not take backwards steps.
Steve Wargo- "Lowering your price shows that you don't have confidence in yourself and that is a big red flag".
Fortunately that applies true in most countries, lowering your rates does show your not confident in your skills.
I am not too sure it applies in our country(Philippines), the way we see it here, the cheaper or affordable you are, the more projects you will get. It doesn't just apply to the freelance individuals, it also applies to the companies. They look for cheaper or affordable individuals and companies to do the projects, simply because they either cost the budget low so that they COULD get the project or client or agency itself gave a very minimal or even steep budget.
I did raised my rates one time during my freelance time. I had a difficult time, I couldn't get project that could likely pay my bills, and I keep losing projects to individual who lowered their rates from the standard rate we have here.
After knowing that, I just have to adjust my rates according to their budget, I am not too sure if that is a wise thing to do, but it did got me a few projects by doing that.
If all of us would simply drop our rates to, say, $25 per hour, we would have more work than we could do. I don't know why we haven't thought of this before. I am a marketing genius. Wait! Just think how much work I could get if I work for free!!! Holy COW. And, I'll make up the losses on volume. And, once I get really busy, I'll go ahead and start paying clients to allow me to work for them. Not only that, but if we're working out in the blazing sun, I could actually pay them double time.
Within 6 months, after I've lost everything and I'm in debt a few hundred thousand dollars, I won't need money because I will be living in a deserted old van, down by the river, fishing for food with a spear.
Wait till I tell the guys.
On second thought, let's keep it a secret. I don't want any competition. Before long, I will have all of the work and everyone will be starving. Awesome.
It's a dry heat!
Sony HDCAM F-900 & HDW-2000/1 deck
5 Final Cut (not quite PRO) systems
Sony HVR-M25 HDV deck
2-Sony EX-1 HD .