Question: How should one quote for a freelancing project and what are the parameters to be adhered?
Possible Answer:
You could consider following points.
1. Time that needs to be spent. This will be directly proportional to number of drafts you give for correction. Calculate an hourly rate and workout the cost. You can reduce hourly rate for larger assignments.
2. Number of visits to be made.
3. Travel cost, Communication cost (posts, phone calls, email).
4. Investment required in terms of setup, hardware, software and so on.
5. How badly you want this project. Is it going to be an entry for you in new line of business? If yes, quote less.
6. Your existing or future relationship with the client.
7. Other overheads like Marketing, Printing, Promotion and so on
8. Negotiation buffer! All purchase managers are well trained to negotiate as much as possible. (I will not go into details as it is another specialized subject).
Also consider prevailing market rates. They keep on changing. Today the domestic rates have improved, but international rates have gone down. If you are quoting for international client, remember that your services/rates could be compared to that of software developers'. Indian software companies today are taking orders right from US$18 per hour to US$100 per hour (depending on nature of work and many other factors). I think, this leads to another possible discussion, what can be the rates for Technical Writing services? I had invited some criticism on TWIN 2-3 years back, when I had talked about freelancers and agencies (we can call these as TWSP - Technical Writing Service Providers) coming together and standardizing the rates. I agree, there are a number of reasons because of which standardizing rates is difficult. But, if we have to make "Technical Writing" an "Industry", this is mandatory! The rewards will be worth the hurdles. If we do this, the volumes of Technical Writing work will increase.
If WE do not do this, the MARKET FORCES (clients, suppliers, placement companies, salaried writers, writing agents and so on) will DECIDE the rates for US. But they will not be beneficial to the US. If you study the trend, today, the rates in USA vary from US$30 to US$ 150 per hour (Disclaimer:- This is my personal perception! It may need correction!). Even the software industry offers a whole range of services (including system design, coding, consultancy and many more). But rates are standardized. I do not know of a company who suffered because of rates being standardized. Remember, even if the rates are worked out, they will still move up and down with the market demands. But then, it can become a guiding index to all TWSPs. Just like BSE Index is to brokers and industry.
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