Today, I came to a realization and it's probably what others have already thought about but I thought I would write it here anyway. Building a freelance writing business is just like building any other type of business. When you open a business "on the outside" you find a location, open your doors and sell your products so that you can make a profit. Customers come in, browse your merchandise and if they find what they are looking for and for the price they want to pay, they make a purchase. Usually, customers do not haggle with the prices. Businesses provide the service and customers either buy it or leave it. We provide a service (writing) and we put our "merchandise" out there for people who need the service. If customers feel that our products are worthy they will purchase it. If not, then they look elsewhere. That is how business goes and it doesn't mean that we should lower rates to accomodate customers. How many shops lower their rates to accomodate customers? If they did that, they would never make a profit. So anyway, those are my thoughts and new words to live by for my writing business.
If you prefer to compare copywriting with merchandising, then let me remind you of annual sales, seasonal discounts and bonuses that most shops offer Here I second you.
Lots of businesses lower prices to accommodate their customers and yet continue to make profit. Wal-Mart built an empire on that premise. Stores have sales and promotions at different periods throughout the year. Some stores honor competitor coupons. What a lot of businesses do that freelancers don't (from what I've seen) is do an analysis of their market. They spend a lot of time learning their target customer. They study competition, substitute products, and complementary products. They learn their suppliers' businesses. Of course, a lot of that information isn't available to freelancers because the market is so fragmented, but it's helpful in planning a business and setting prices. When we set prices, we have to think about bargaining power and who holds it - our customers or us. To keep customers from dictating prices, freelance writers have to build their businesses in a way that gives them the bargaining power. Without doing that, you'll either find yourself lowering your rates or quitting the freelance writing business. But, after saying all that, I do agree that writing is a business. Successful writers have to think of it that way or they won't be successful for long.
Oh, I completely agree with you. I definitely think that it is part of the business to provide discounts, sales etc. What I am referring to is people who want to set their own prices for items without having a sale etc. Yes, exactly.
I'm glad this thread is here, because it highlights what many service providers fail to do--differentiate between services and goods. While there are some marketing similarities, marketing a service properly has its own unique approach. Perhaps this is why many service providers have trouble making more money or why they fail outright. Services marketing is different than goods marketing. Using Wal-mart as an example on how to operate a service-based business is incorrect, because they are a goods-based business. It's apples to oranges. Without giving a complete course in services marketing, let me just say that the consumer behavior is different with services. The hurdles to climb over and the proper marketing strategies are different too. FYI, successful services marketing doesn't use price in positioning. In goods marketing, you can (Wal-mart).
Good point. I wasn't thinking to that level of detail (and I should have been), but you're right. Goods aren't marketed or priced the same way services are. A lot of writing businesses offer products - i.e. PLR, ebooks, etc. So it's up to each business owner to know what he's offering and market accordingly. I still stand by the argument that all businesses, even those providing a service, must rethink their rates based on customer demand.
Great thread! I think that once writers start thinking of their business as a business, instead of just as a hobby, they'll get much better results. The points about service vs. product are also important. With a product, people are just looking for a good deal. With a service, that is also true but customers are looking to be taken care of and get the most out of their experience with you. That means there is more follow up, more "catering" to their needs and a better relationship developed. It's much more about personal connection than a goods based business.