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Just say you’re always booked. Easy
Tell them astronomical rates and don't budge.
If it’s a short contract or project work, name a high price and be open to giving it a shot. I just got off a project for an agency everyone told me to stay away from, and they were right - I neeeever want to work there. But after a couple of months it was still a good experience, they paid well and because I wasn’t too pressed about them it was one of the more relaxing gigs I’ve had in a while. I did decent work, they were happy, the client was happy, I was fine.
Just a thought
Leo1 is right! Never turn down an opportunity outright. Simply propose terms that would make it worth it, putting yourself in a win-win situation. Tell them your rate is double or triple, and if they book you, you can suffer a bit and cry into your bed of money. If they refuse, youre free anyway!
You don’t. You just tell them you’re busy. An acceptable white lie :-)