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  • Career & Money

What freelancers need to know about inflation

5 min

You’ve probably gawked at the prices while trying to fill up your tank, or while buying some groceries, or when you were trying to rent a house, right? Well, that’s inflation. Ever since March, inflation has dramatically increased and reached a whopping 8.5% which is the biggest year-over-year jump in 40 years. That’s huge.  

What’s inflation you ask? It’s an increase in the overall level of prices for household goods and services. Every day, most people purchase a diverse range of goods and services, which fluctuate in value. And when inflation becomes uncontrollable and increases over time, it’s referred to as hyperinflation or stagflation. These terms refer to out-of-control inflation that devastates consumer purchasing power and economies. (Yikes!)  

As a freelancer, inflation tends to devalue your labor the same as other kinds of labor – but! You can easily flip losses into profit, here’s how: 

1- Evaluate your pricing  

The first step is to figure out the price increase. The commonly accepted rule for wage rises is to add 5-10% to your pay rate. Your income should be slightly higher than the rate of inflation. Furthermore, consider the amount of income that corresponds to life in your area. At this point, the most important thing to remember is that you should prioritize your own interests to be fairly compensated for your efforts.

 


2- Focus on the quality you’re offering  

If you warn your clients that your services have risen in price, they might be unlikely to agree to the new terms of service. So, when asking for higher fees, consider the value of your work. A regular report on the work completed will assist you in this. But first, make sure to correct the completed tasks, and refine previous projects as well as the qualitative and quantitative indicators you were able to achieve. 

Include a list of certificates and credentials you have or recently acquired if they are out of date. Describe the extensive knowledge and expertise you have in your field and how it can help your clients in their business. And don’t forget to discuss any new services you might have added to your portfolio. These things help you justify your position to the client and help them see the value you bring.   

 

 

3- Look out for rejections  

Don’t take it personally if some clients aren’t able to meet your new rates – it’s not you, it’s just budgeting. Try to reach a middle ground with them and negotiate on future pricing that meets them halfway, maybe that means minimizing and adjusting what services your providing them with.  

Also, if you dwell on the rejection too much, it will drag you down and hold you back. In the future, you'll begin to doubt your abilities, lose confidence, and begin second-guessing all of your work. 

So don't waste too much time wondering why you were rejected. Instead, concentrate on the positive. Remind yourself of all the clients who have praised your work. Your work has been valued and appreciated numerous times. 

 

4-Expand your palette  

Always have plan B up your sleeve. Try exploring another field, and see if you find yourself fitting in. For example, if you’re a copywriter and you’re used to working for a specific niche like e-commerce, try venturing into another niche like real estate, or the food and beverage industry.

This way you’ll be expanding your palette rather than sticking to the same old crowd you’ve been writing about for a while. 

Plus, your portfolio would get more added value, and you’ll be showcasing that you’re not sticking to the same industry but opting to explore beyond your field.  

 

 

The bottom line  

Always remember that it isn't just about inflation, the economy is unpredictable and uncontrollable. What matters is that you regard yourself as a highly skilled professional. Create a professional development plan that is supplemented by a schedule of service price increases.

Clients will stay with you if you are a dependable professional, even if they have to pay twice as much. The most important thing is to respect your customers and remember that every price has a buyer.  

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