I recently came across an article by Jake Jorgovan titled “The price of creativity.” Before I began to read it, I thought to myself, “What is my creativity worth to me?” You have probably asked that same question when setting your rates or overall project fees.
The answer? It doesn’t matter. All that matters is what it’s worth to the client. After all, they’re the one who’s paying.
Now, I’m not saying that you should completely abandon all your rates and adopt a pay-what-you-want method of pricing. I’m not saying that if you charge $100/hour and the client can only pay $20/hour that you should immediately lower your rates.
What I am saying though, is that what the client thinks your worth is what they’ll ultimately want to pay.
So what do you do? The answer is simple, but it takes a lot of hard work to get there.
Jake presents us with a scenario that most of us know all too well.
“For the second example, imagine two graphic designers. Both of these designers have a similar style and quality of work.
One designer, spends his days designing.
The second designer splits his time between designing and building up a following for his work online. He blogs, uses social media, writes and creates a tribe.
The first designer charges $1,500 for a simple graphic design project.
The second designer charges $15,000 for the exact same project.
Why is it that one designer can charge so much more than the other designer for the same work and the same product?”
The true driver of the price of creativity is demand.