One question always boggles a freelancer’s mind, i.e. if he/she should ask for money by project or by hours.  For sure by hours, he/she would make money in short span. But simultaneously, his/her breathe chokes off until the deadline will meet its end. Apparently, by project charging sounds a better deal. You can stay free of tension to complete your project within the said hours. If not so happens, your work as well as money will go in vain. Besides, time-consumption will also manifest as ‘futile’ while doing that rejected assignment. 

Why ‘by project’ quoting is good:

Mostly, freelancers fear whether they will get or not the quoted price of the .  Let I disclose the upcoming disaster in this. If you underbid, you have to give up the dream of earning profit. The delivery of your project may hand over you the money less than quoted. Tax charge would add more tears to your grieving heart.

Therefore, starter-ups should have to ask other freelancer friends the prevalent cost of the particular project, say it be Financial and Accounting, Business System Support etc. It would assign you an edge to put what’s the exact cost of your hard work and expertise. 

How to make the effect of ‘Underbidding’ negligible:

  1. Prepare flexible agreement: Write-up an agreement in which flexibility will be present with every term and condition. What if the unseen or untold expenses will have to be endured? Of course, the tiff will begin if neither your client nor you will be agreed to bear the burden of that extra cost. You would have to attempt re-negotiation with the client. And what’s the guarantee that he will nod for sharing that extra cost?Keep your agreement open ended. Clearly mention that the extra expenses will be liable to be matter of resetting the agreement, if occurs.
  2. Bid minimum but include hourly surcharges: Be tricky. Keep your bidding amount low. Once you win the bid, mention a clause that extra amount shall be charge per hour basis. Thereby, the client will think twice before assigning you extra work. Wow! You have escaped the burden. And if he will ask, you have a golden chance to make your money.   
  3. Pre-mention the cost incurred by your client and you separately: Pre-fix for what price your client has to pay in return of
    hiring your time and expertise. Beyond that, the additional charges will be levied. For instance, if you are preparing project of accounting and reporting, you will get the fixed amount for your expertise but if you file income tax, you will be eligible for getting the cost cover for the same.
  4. Make profit in long run: Underbidding, undoubtedly, drag you to loss. So, keep a very little margin as profit if you think that the client can be your partner for long run. State it clearly to him that your margin ratio is meager yet you are looking forward for building long term relation.  Do remember, business is a long –running process. You need clientele that can give you freelancing job for long time. And if the client lacks potential of partnering for long, you can adjust the loss with the profit harvesting from other projects.
  5. Serve overdose: Furnishing a project is quite simple way to bank upon. For making more than enough, serving an overdose of your expertise marks greater impression. Be that overdose perfectly outstanding but make it undeniably useful. Very politely, exhibit its advantages and special features. Acquire the avatar of an impactful seller. Within few words of explanation, the overdose will pay off some extra bucks to you.