Found a pricing stat that floored me: most new freelancers undercharge by 40%

I was reading a Freelancers Union survey from 2023 and it said newbies set rates 40% below market on average. That hit me because I quoted $15 an hour for my first gig in Portland and the client actually said 'are you sure?' I started wondering how many of us leave money on the table without even knowing it. Has anyone else found a number like that that made you rethink your whole pricing?

2 comments

2 Comments

park.aaron4d ago

Honestly I'm not even sure that stat means that much. A lot of new freelancers don't know what they're doing yet so of course they're going to charge less to get their foot in the door. That client saying "are you sure" could just mean they were nice or testing you, not that the market is 40% higher. Undercutting yourself on purpose to land a first client is a strategy, not a mistake. The real problem is when you've been at it for a year and still haven't raised your rates because you're scared of losing people. So yeah the number might be real but it doesn't actually tell you what to do with your pricing now.

garcia.cameron4d ago

Oh man, I actually disagree a LOT here. That "are you sure" moment from a client is literally the market telling you your price is too low. I've had it happen twice and both times I raised my rate by 30% with the next person and got the gig. New freelancers undercutting is real, but that stat is showing something deeper. It's showing that clients already have a number in their head and when you come in way below it, they get suspicious. So yeah that number DOES tell you something, it tells you to stop leaving money on the table.