Sharing Daily Discoveries About Personal Finance And Business Topics

Coming Up With Prices On The Fly

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I recently had an experience where a company wanted to buy some existing work from me where I originally had no intent of doing. I was simply creating this item for fun. But I suppose due to things like a tight deadline they needed something right away and my work matched the criteria. So the odd part was they asked me how much I would charge them which was a little puzzling since again I never created it for commercial purposes. But I knew it shouldn’t be provided for free since they wanted to use it for commercial gains.

So my method of trying to come up with a price was to simply visit various company sites that offered the same thing for a fee. From there I looked at what the average service fee was and simply subtracted about fifteen percent of that total. Now the thought in my head was that seemed like a lot of money considering this is something I did for fun. But since that is what people were charging the figure sounded reasonable. I know value wise it was a great deal too as they would have probably had to pay five times as much to actually hire someone to create what I already have from ground up. Sure enough, they enthusiastically agreed to the price.

The more I think about it pricing is usually like this too where businesses simply look at what others are charging and from there they either make it similar or cheaper. I probably wouldn’t have been able to think of anything or extremely undersold it if I just based it purely on what I felt it was worth since I have a bias where I created it for fun. At the same time, I guess it shows there is always a market for your work.

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