Here as promised, is this week’s Music & Money Monday post…just a day late! Sorry for the delay, but Collis at Freelance Switch has our wisdom for today in a post called “Nine Factors to Consider When Determining Your Price.”
“Part guesswork, part experience, part number crunching – how ever you look at it, determining your price is a difficult task.”
Um, yeah. As I’ve mentioned before, I HATED this part of being a pro musician. I just wanted to play music and get paid a fair wage. Unfortunately, it’s just not that simple, but Collis provides a great, short & concise list of things to consider, but 7 and 8 are my favorites.
7. Your Business Strategy
Your strategy or your angle will make a huge difference to how you price yourself. Think about the difference between Revlon and Chanel, the two could make the same perfume but you would never expect to pay the same for both. Figure out how you are pitching yourself and use that to help determine if you are cheap’n’cheerful, high end or somewhere in between.
8. Your Service
What you provide for your clients will also make a big difference to your price tag. For example you might be a freelancer who will do whatever it takes to get a job just right, or perhaps you are on call 24-7, or perhaps you provide the minimum amount of communication to cut costs. Whatever the case, adjusting your pricing to the type and level of service you provide is a must.
I’ve picked these two because they are opportunities that you control. You, and you alone, are in charge of your strategy (read: career) and how you provide your service. Put these two together and you get what is commonly called a USP, or Unique Positioning Statement.
Early in my career in Nashville, a singer friend of mine suggested that I begin an Afro/Caribbean/Latin/jazz “drum experience” concert thingy on an ongoing basis. He suggested that it would be so unique I would be noticed and known throughout the music community and get lots of work.
I thought he was nuts.
I still think he’s nuts.
BUT! Despite the fact that I didn’t want to be known as the drummer behind the Afro/Caribbean/Latin/jazz thingy, he was correct in understanding how to differentiate a business and service. And this has everything to do with money.
You will always be limited in your pricing as long as you do what everyone else does. I never raised my rate to double scale because I was just like everyone else: a drummer.
The key to success is to develop a strategy and service philosophy that differentiates your offerings from everyone else. Think about ANYONE you admire as a success in the music business. You will always find a USP. You will always find someone who does something just different enough to grab the attention of other people.
THAT is money in the bank.
