How to Quote & Charge for Freelance Work

The 2022 report of IPSE says that that there are almost 2 million freelancers in the UK, which shows the rise of more self-employed workers in the region. And if you’re planning to be one of them, knowing how to price your services can be confusing. 

If you want to know what’s inside a quote for freelance work, we’ll uncover everything about writing quotes, negotiating rates, handling delayed payment issues, and calculating your rate.

How to write a quote for freelance work

A well-written quote is what you need to secure projects and establish good and professional relationships with your clients. We recommend that this document be as clear as day, outlining the scope of work, deliverables, timeline, and pricing to set realistic expectations for both parties. Below is an example of a well-crafted quote:

Let’s breakdown this amazing quote into parts. Here's the things you need to include with helpful tips for structuring your quotes effectively:

1. Project Scope 

After discussing the full set of requirements with your client, a written document such as the project scope makes sure that all details are on paper. This is where specific tasks fall into, detailing the full work that must be accomplished. If you’re a web developer, the project is commonly split into multiple parts or phases just like this web design quote template.

A good tip is to also specify what is not included in the project to avoid misunderstandings later. If the additional work is something that you also offer, you can open a potential discussion on a separate quote for this.

2. Deliverables

The deliverables clearly state what the client will receive at the end of the project, such as documents, designs, or code. You may break down the deliverables into parts such as this template or use bullet points or numbered lists for easy comprehension. 

If you’re a web developer, you can also add the number of revisions in the quote. Techniques like these push the favour to you as you go through the project due to quick turnaround times, eventually leading to faster completion of the project.

3. Timeline

These outline the dates and deadlines to keep the project on track. Once you’re clear on what to deliver to your clients, you can set plausible timelines according to your workflow. Giving your clients peace of mind on when to expect the deliverables is a good practice to establish professionalism and potential collaboration in the future. 

Another good tip is to allow for unexpected delays or challenges by building in some buffer time or offsetting hours from your usual time to finish a given task.

4. Pricing Breakdown

Itemise or break down the total cost into individual components, such as hourly rates, fixed fees, or project-based rates depending on certain milestones. 

When dealing with fees, freelancers usually consider including payment terms on their T&Cs, such as upfront payments, payments per milestones, or final payment upon completion.

5. Additional Considerations

We’ve discussed the crucial parts of the quote but it’s as important to use clear, concise and professional language to avoid confusion. Always proofread your quote carefully and don’t forget to include your company details and customer information in your quote.

Negotiating Freelance Rates

You’d probably agree that haggling is a skill every freelancer must have, especially when it comes to pricing and scope. Potential customers might try to fit their needs within a certain budget and while it’s good to be flexible as a freelancer, you’ll still want to be paid at your desired rate.

To start, you want to research the current rates through salary surveys, peers, headhunters, and forums as these sources give you an idea of the industry standard rates. For instance, Glassdoor states that as of October 2024, the average salary for a freelance web developer is £32,697 per year. Sources like Totaljobs, Indeed, LinkedIn, Glassdoor and Upwork provide a goldmine of data on the average market rates in freelancing. Research the skill demand, and assess the project complexities you’ve handled before to benchmark your minimum acceptable rate (MAR). Be ready to walk away if the potential client goes lower than your MAR. 

Now that you have an idea of the rates to charge, how do you win conversations of getting your desired rate? Here are some strategies to keep in mind:

1. Be confident 

When it comes to these conversations, confidence is surely your friend. Remember that you are the expert, and clients approach you to avail of your services because they either don’t have the time or the skills to do it. So, approaching a negotiation with a secure and composed facade increases your chances of getting your desired rate.

2. Start higher

Paul Whitehead, a director of an IT Recruitment company Career Concept Ltd, states that negotiations on rates usually go down instead of up. So, giving a clear number could help you out. 

To give you an idea, growth marketing consultant Dan Siepen goes for 20-30% higher than his usual amount. On the other hand, Virginia Hogan, a freelance writer, shares the trick of “letting them say no the first time” because based on her experience, they can still possibly return.

3. Aim for a win-win situation for both parties

You’ll most likely lose the negotiation talks when you intend to rip off your clients. Building a good agreement where both parties benefit from the outcome is a great way to win the project and accommodate their request. 

The negotiation may not just involve money. Perhaps you may consider other parts of the quote such as deliverables and scope when given a tight wiggle room. In such situations, we advise you to stay polite, open-minded, flexible, and assertive by clearly communicating your needs.

4. Focus on value more than price

When you're talking about pricing, we don’t want to focus on how much you're asking for. Instead, show your client how much they'll get out of working with you. Talk about what you can do for them, the results you've gotten, and any good feedback you have. 

Let your work speak for itself. That way, you can start asking for a fair price that doesn't make you look like you're undervaluing yourself. Content writer Sanketee Kher followed this strategy where he established the value of the services first and then laid prices last.

5. Bundle services into packages

To get a client to agree to your desired rate, consider offering packages of your services to simplify their needs. By providing deliverables in bundles, you give your potential clients the impression that you are adding value. This is especially useful in situations when they might place a high value on certain services, which have low marginal cost to you.

Dealing with non-payment issues

Clients not paying is not uncommon for freelancers. In fact, the research commissioned by the Department for Business and Trade (DBT), shows that less than 10% of supplier invoices are not paid within the agreed timeframe.

To future-proof your services from these kinds of scenarios, you’ll want to establish clear payment terms on your T&Cs and contracts. First, like other freelancers, you may ask for a 50% upfront fee before starting the project. 

There is also a law called Late Payment of Commercial Debts (Interest) Act 1998 which protects freelancers like you when dealing with late payments. You can add a note in your contracts saying something like this:

“If payment is not made by X date, the client is liable for daily statutory interest of 8% + the Bank of England base rate for business-to-business transactions and £X debt recovery costs as per the Late Payment of Commercial Debts (Interest) Act 1998. This will take effect after the said due date.”

But in case you’re already in a position where you are not paid for your work, you may send reminders, check in with your clients by asking politely, add the late fees, hold work until payment is received, or file a court claim. You may also resort to using debt recovery services if the common actions mentioned prior are ignored.

Calculating Your Freelance Rate

Some freelancers charge hourly, some charge per project, some charge retainer fees and some charge based on value. If you’re new to this game, it can be confusing to figure out your rate. But it always depends. The type of pricing strategy will depend on the nature of the work, complexity of the project, budget and your level of expertise. 

• Hourly rates are usually used for ongoing work where the time it takes to complete a task isn’t always predictable such as legal consultations. 

• Project-based fees are better for one-off jobs with a clear start, finish, and detailed deliverables. An example is when offering website design and development. 

• Retainer fees, on one hand, are for consistent work giving you a steady paycheck for a certain period of time such as social media management and virtual assistant services for email and calendar management. 

• Value-based pricing focuses on the profit the project will bring to your clients, usually in a form of a percentage of the projected value. It’s a popular trend among freelancers to increase the prices of projects.

Remember to align your strategy with your main goal. Some freelancers tend to follow project-based pricing strategy because they may be able to work fast. An anonymous content writer in the 2022 data on freelancing writing rates survey by Peakfreelance said:

“I started with per-word pricing but as I gained experience I realized it didn’t truly reflect the work needed to create a high-quality post. So I switched to per project rates.”

To give you a better idea, below is a summary of different job roles for freelancers in the UK. You might also want to use a freelance calculator to help you get your after-tax pay. 

Get your freelance business off the ground with SUAZ

Freelancing offers a flexible and lucrative career path, but it requires careful planning and strategic pricing. We hope this guide help you in crafting effective quotes, negotiating rates, handling payment issues, and determining appropriate pricing strategies. By understanding these key aspects, you’ll surely increase your chances of securing profitable projects. If you’re ready to start your freelancing business, form your business today with SUAZ to get started.