No matter how much a freelancer is earning in their home country, International clients are like a cherry on the cake. Be it in terms of payments, exposure, or networking, international clients can be a great addition to any freelancer! But, this is easier said than done, and it has its own set of challenges!
While everyone prefers international clients due to high payments, and associated exchange currency benefits, the major challenges are also due to currency exchange, and payments. And, that is quoting prices for your services!
Further, as international clients pay freelancers in their home currency, freelancers often feel it difficult to quote the right price. But, know that it is important to be a little extra careful while drafting your prices for international clients. Why you ask? Here you go!
Why Is It Critical To Calculate International Prices?
Right pricing is of utmost importance when it comes to working with international clients because of the currency difference. For instance, think of a scenario if you plan to onboard a US client. And the client prefers to deal in US dollars. But, you are in a country where the currency value is lower than the US dollar. Your quoted price might seem like reasonable pricing if you calculate your currency value. But, in dollars, it would be very low as per the wage trend!
In this case, freelancers might feel very confident that they are getting paid right. But, international clients would be getting cheap labor! This is where major freelancers go wrong!
While calculating international prices in different currencies, always comprehend what is the respective values of both currencies and what shall be the right price for international clients! But, How? How can you ensure you give the right pricing to your international client and do not get underpaid or undervalued?
How To Make Sure You Don’t Get Underpaid?
Freelancers operate independently. This makes it difficult for them to calculate international prices. But, there are some principles that can help freelancers like you to calculate international pricing precisely. Let’s hop on!
Demand Oriented Pricing
This is a global principle to decide prices for your services. For this, research well if your freelance skill is in demand or not. If it is, compare it with the number of freelancers associated with that service and later map the data with your creative skills!
This would help you comprehend how demand and supply is intersecting for a particular freelance skill. Along with this, also consider factors that make you best than the rest of the freelancers. These factors can be robust experience, a wide project delivery portfolio, past global experience, and so forth!
The value of your freelance services also decides the best price you can ask for!
For instance, if you are into freelance skills that directly generate business for your clients like CRM management and lead generation marketing, you can always ask for high prices or even commissions. Whereas if you’re into indirect business-driven skills like product photography, video shoots, etc. the price of your skill should be comparatively low! Before setting and finalizing your prices, be aware of this and calculate an international price for your freelance services smartly!
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Freelancing is a boosting and emerging field. And this is also one of the reasons that make it extremely difficult to calculate international prices. But, if you know the principle of competitive pricing, you can save yourself from underpaid or undervalued scenarios!
Competitive pricing is decided on the basis of competition in the market. How many freelancers are available? What is their standard price for an international client? What can justify your higher price? Will you be preferred by clients if you set a specific price? May be lower or higher than the market’s standard price! All these answers can help you decide precisely on your international pricing models!
Check out how to raise your prices as a freelancer.
It is almost impossible to calculate international pricing for freelance services optimally if you don’t consider currency exchange rates. Along with this, taxes should also be considered! And only then international pricing should be quoted!
This would also help you get the right payments for your creative worth even after currency exchange rates and taxes deduction.
Is it all for calculating international pricing reasonably? Wait, there’s more!
Some Extra Tips For International Pricing
Apart from the above-mentioned things, there are a few more bonus tips for you to get your intentional pricing sorted.
The first and primary thing to do while calculating international prices is to do thorough market research. For instance, if you are planning to onboard a UK client or middle east client, understand what are the basic freelance trends and payments going in the market. Also, understand the way these markets operate. How many freelancers are there? How do local freelancers reach out to clients? This would prepare you precisely for your first international client!
Moving on, there’s one more essential tip and that is to effectively communicate! It is suggested that before taking that first international client deal, communicate and talk with a range of clients, local freelancers, and people in the same field as yours. This will provide a deep dive into the real market scenario and help you draft prices that get accepted by clients!
Apart from this, one piece of advice that works like a magic potion for freelancers is to set client boundaries! Decide beforehand how much you would negotiate. Don’t lower your prices for international clients just to get the deal. This would hamper your reputation as a credible freelancer.
Charge For What You’re Worth!
When it comes to freelancing, charging for what you are worth is paramount and decides the satisfaction of freelancing. And, this highlights why you should price right and avoid getting underpaid and poorly paid!
To begin with, you can keep the above-mentioned things in mind. And, if you want to be a little more sure about your international payments, hop on Refrens; a marketplace for freelancers that takes care of all your worries about payments and calculates prices for international clients! With secure international payment gateways and immense opportunities to choose from, Refrens can be freelancers’ ultimate solution!