Pricing grant writing services is a challenge that many freelance grant writers have (and for good reasons).
The thing is a lot of freelance grant writers and nonprofit consultants go with traditional pricing vs. value-based pricing.
However, as a freelance grant writer, you are a professional and you should be charging value-based pricing.
Value-based pricing is bringing in the perceived value of the service or good. In your case as a grant writing consultant, your grant writing services.
Additionally, it takes into account your experience, the amount of grants you have secured, the types of grants you secured, etc.
Another factor is that Valued-Based pricing also considers the value of you freeing up the executive directors ability to focus on the nonprofit and not write grants.
This value is huge.
Many, many people do not like writing grants and they know that it takes technical skills to write them.
If they can hire you to focus on generating funding for the nonprofit’s programs, then they can focus on what they love to do – serve in the programs.
Value-based pricing is in contrast to traditional pricing, which is based upon the concept…
Price of production OR price competitor’s charge = traditional price
The problem with traditional pricing is that the only way to compete is to give a discount or price lower than your competitors.
Overall, this lowers the value of the industry because it is a race to the bottom.
In fact, a study demonstrated that women consultants are more vulnerable to this method, which pointed out that 20% of female consultants believe they must charge less – and give steep discounts – than male counterparts to get and keep clients.
That model isn’t sustainable for consultants who have figured out their real pricing structure. And it’s not sustainable to lift up equity and lessen the divide among gender pay gaps.
What all to Consider in Value-Based Pricing as a Grant Writer
You can also include market research.
But be sure to look up what other Freelance Grant Writers are charging…not just grant writers!
Because what salaried grant writers are charging is very different from someone who owns their own business.
Also, be sure to include your expenses. Remember, as a freelance grant writer or nonprofit consultant you need to include:
- Retirement
- Health Insurance
- Profit!
- Business Costs
- Vacation
- Software
- Home office space
- Inflation
- Experience
- Solving problems
- …and SO much more!
Also, be sure to include the VALUE of your services.
What is the value of that executive director not having to work weekends because you are now writing grants?
What is the value of the executive director being able to focus on the vision of the nonprofit and not having to write grants?
There is a LOT of value associated with that!
Looking for More Support in Value-Based Pricing as a Freelance Grant Writer?
Inside the 2023 Grant Professional Mentorship , I will teach you how to book out your grant writing business with ideal nonprofit clients where you don’t feel like you need to give deep discounts (traditional pricing). You will learn how to design Value-Based pricing so your prices reflect the REAL value you bring to nonprofits.
Believe you me, these prices are different. And guess which type of client appreciates and values you more?
You got it.
The one who pays you based on Value-Based pricing (not traditional pricing) for your grant writing services.
