Journal • February 20, 2024

On Pricing Creative Work Properly

On Pricing Creative Work Properly

On Pricing Creative Work Properly

The most common mistake made by independent creative practitioners — designers, filmmakers, developers, photographers, writers — is charging less than their work is worth. Not slightly less. Dramatically less. Less by a factor that reflects not what the work costs to produce, not what value it creates for the client, but what they are afraid the client will say if a larger number appears on the proposal.

This is worth examining, because the consequences are serious and they compound.

What Underpricing Actually Costs

When a creative professional prices below the value of their work, several things happen simultaneously.

The economics become unsustainable. The practitioner compensates by taking on more clients than they can serve well, working longer hours than the fee justifies, or cutting corners in ways the client doesn't notice immediately but will eventually. The quality declines. The reputation suffers.

The client relationship is established on the wrong footing. A client who has paid a low price has received a signal — whether intended or not — about the value of what they're getting. When the relationship becomes difficult, the framing is already in place: this was inexpensive, therefore it's reasonable to expect unlimited revisions, or a very fast turnaround, or flexibility on the agreed scope. The underpriced practitioner has pre-negotiated every subsequent conversation in the client's favour.

The market gets worse. This one is less immediate but equally real. Every creative professional who prices below the market rate makes it harder for every other creative professional to charge a sustainable rate. Clients develop expectations based on what they have paid before. The creative industry has collectively undervalued itself for decades, and the result is a sector where the median practitioner earns less than they should for work that is genuinely difficult and genuinely valuable.

The Source of the Problem

Underpricing usually comes from one of three places: insecurity about the value of the work, concern about the client's budget, or a misunderstanding about what pricing communicates.

On the insecurity: the only response is to get more confident, which comes from doing more work, documenting the results, and accumulating evidence of the value that has been created. This is a slow process but it is the only one that works.

On the client's budget: the client's budget is not your problem to solve on their behalf. Your job is to price your work correctly and then let the client decide whether they can afford it. A client who cannot afford the right price for the work should either get a reduced scope, a different practitioner, or a deferred start when their budget has grown. They should not get a full-service engagement at a reduced price, because that engagement will not be delivered at full quality.

On what pricing communicates: price is information. A high price communicates confidence, quality, and specificity. A low price communicates the opposite. This is not fair, but it is consistently true. Practitioners who have raised their prices without changing their offering frequently report that they lose some clients and win different clients — and that the different clients are easier to work with, value the work more highly, and produce better outcomes.

A Note on Transparency

Pricing creative work is complicated by the fact that most clients don't understand what goes into it. A website that takes three months to build looks, from the outside, like something that should cost less than a new boiler. A documentary that took eight months of research doesn't look different to a documentary that took eight days.

The solution isn't to itemise every hour on an invoice. It's to communicate the process — the research, the thinking, the craft, the expertise — in a way that makes the value visible. The case study, the portfolio, the conversation before the proposal: all of these are opportunities to establish what this work actually is before the number appears.

The number lands differently on a client who understands what they're buying.