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  • Corine Olarte

#4 Charge Your Worth: How To Price Your Creative Services



About the Episode:


When it comes to pricing creative services, we often hear the advice “charge your worth,” but what does that really mean? This episode explores strategies for pricing your creative labor, and how to effectively communicate your value to a potential client so you can get paid what you deserve!


Support the podcast: https://ko-fi.com/corineolarte


DISCLAIMER: I am not a financial expert. This episode is for educational/entertainment purposes only. Please consult your accountant or a trained financial expert about your financial needs.


 

Topics Discussed (Formulas & Lists):

To help guide you through figuring out how to price your creative services

Cost of Doing Business (CODB)

Profit Goal + Tax Percentage (of Profit Goal) + Estimated Yearly Expenses = Revenue Goal

Revenue Goal / # of Estimated Jobs = Average Cost of Service


For example, let’s say you added up all of your expenses in one year and got $10,000. Assuming your profit goal is $60,000 and your tax percentage for your country or state is 30%, add all of those together to get your revenue goal of $88,000. Assuming you need to book 88 clients, same as our previous example, your average cost of service would be $1,000. This means that, on average, you need to charge $1,000 per job to cover your expenses, achieve your revenue goal of $88,000, and make a profit of $60,000 by the end of the year.

3 Ways to Add Value to Your Creative Service Packages & Products

  • Tell stories

  • Share your own story or share behind-the-scenes or the story of the process of your art

  • People buy with their emotions, not their budget. When was the last time that you stuck to your budget?

  • Get comfortable with selling

  • With telling stories, it does come with a level of selling, which is a concept that many creatives are not comfortable with. No, you’re not a sleezy salesman. You’re just an artist who deserves to be compensated for their time, energy, and talent.

  • By framing it as a mutually beneficial exchange, you can feel confident in advocating for yourself and your craft.

  • Provide an exceptional client experience

  • Remember that your time working with a client is also providing them with a one-of-a-kind experience. The prices that you set are a reflection of your client experience in addition to your equipment, expertise, education, etc.

Additional Sources:

Art Price Calculator (free app)


Cost of Doing Business Calculator (free on NPPA: The Voice of Visual Journalists website)

The Square Inch Method (source & examples):

Width x Height = Square Inch

Square Inch x Value = Artwork

Artwork + Materials + Costs = Art Price

Art Price / Your Percentage Portion = Art Price with commission

The Linear Inch Method (source & examples):

Width + Height = Linear Inch

Linear Inch x Value = Artwork

Artwork + Materials + Costs = Art Price

Art Price / Your Percentage = Art Price with Commission



The Laborer Method (source & examples):

  • Hourly rate formula: (Hourly Wage x Number of Hours worked) + Materials + Costs = Art Price

  • Daily rate formula: (Daily Rate x Number of Days worked) + Materials + Costs = Art Price

  • Monthly salary formula: Total Costs / Number of pieces you can complete in one month = Art Price Desired Salary / Art Price = Number of pieces you’ll need to make to achieve desired salary

Recommended Budgeting/Expense Tracking Apps

Not sponsored. Based on viewing multiple listicles of best budgeting & expense tracking apps.


 

How to Support Our Host, Corine Olarte:

Photographer, content creator, mentor


How to Support Our Editor, Alexys Carrasquillo (Familia Creative Media):

Multidisciplinary creative

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