I recently asked a partner in a small design firm what she charged for a recent design project: for the website, around $25,000; for the logo, around $20,000. I have been charging my clients roughly 10 times less for the exact same scope of work (and frankly, much better quality too).Unfortunately, I’m not alone. Many of my freelance design peers are in the exact same boat: undercharging and feeling undervalued.

Here’s what makes sense: the small design firm has to pay overhead, rental space, and salary for more than just one person. The freelance designer working from home has less overhead. Here’s what doesn’t make sense: if the quality of work and scope of work are the same (i.e. you’re working JUST as hard), shouldn’t we as freelancers be charging nearly the same amount if the end products are the same? The answer: hell yes.

So the question is, why the heck aren’t we? Here are the top ten reasons why freelance graphic designers are charging too little:

1. My clients just aren’t willing to pay that much.
2. My rates need to be really competitive because there are just too many designers willing to do the same work for less.
3. I’m afraid to ask for too much and risk losing current or potential clients.
4. I don’t know how to justify the higher rates to my clients.
5. I don’t know where to find the clients that are willing to pay more.
6. The economy is tight and I’ll take what I can get right now.
7. I’m charging less on this project because I’m hoping the end results will bring lots of referrals.
8. I lack the confidence or self-esteem to ask for higher rates.
9. I don’t want to offer prices I couldn’t afford to pay myself.
10. I feel intimidated competing against a design firm (even if they are small) for a client’s work.

Do any of these rationales sound familiar to you? You’re not alone. But this should (hopefully) make you feel better: do a quick Google search for small design firms in your area. Open up their website portfolios and compare them side by side on the screen with yours. Is your work better, the same, or worse? If it’s the same or better than that should pretty much knock off all the doubt/confidence concerns from the list (if it’s worse…sorry, but your lower rates may very well be justified at this time). For where to find those higher paying clients, see my previous article, How to get graphic design and copywriting clients: Drop the mouse and step away from the computer.

And finally, make a deal with yourself: if your clients aren’t paying what you want, then stop accepting the small jobs! Push the fear, lack of confidence or whatever it is into the garbage disposal and start charging what your time, energy, expertise, and creativity are rightfully worth.(originally appeared in SF Examiner  10/12/09)