People who are new to freelancing seem to have a major problem pricing themselves. They either go too high or too low. Here are some tips for price setting properly.
1) Know how much money you need to make per month to stay alive!
While many people freelance as a side job, some of us actually do it as our primary job. So don't set your prices so low that in a crisis you couldn't afford Ramen. However, don't set them so high that you think you'll be buying sports cars. Consider your true cost of living.
2) Go $20 higher than what you really want to make.
People like to haggle, and you could end up being paid less than you want. Setting your estimates $20-30 above what you really want will give you wiggle room, and you could end up getting more than you want. Just remember to be adamant about your base price.
3) Price based on quality.
If you don't speak fluent English, don't charge $20 per freelance writing article. Price based on the quality you can produce. It's helpful to ask friends and family how much they would pay to get your work. Sometimes we undervalue ourselves.
4) Price based on competition
Don't go too crazy with this, but asking around can help you to set your prices within the industry range.
Pricing is extremely important, so make sure you do it correctly!