Graphics Reference
In-Depth Information
Learning about Pricing
Two design firms can have the same published hourly rate and calculate two different
project fees using that rate. For example, one design firm may work slower or have more
people involved; this means it estimates more hours into a project and it charges more.
Only by keeping very good records, especially time sheets, on all projects and then com-
paring estimates to actual costs can designers price their work accurately over time.
A trusted client may be candid and tell the designer what competitors would charge on
a particular job, particularly if the designer lost the job to a competitor. It's important to
learn why a design firm lost out on an opportunity, but remember that it isn't always a
question of money.
Another useful strategy is to develop relationships with other designers that can include
discussions of money.
Remember that big fees don't necessarily mean big profits. It all comes down to how
theprojectisrun.Howlongdidthedesignerworkontheprojecttoearnthatfee?
Maybewespentverylittletimeontheproject,buttheworkwastremendouslyvaluable
to the client's business. These things are unique to every design project. It is why most
designers are always wondering whether they charged enough on a job and whether they
could have made more money.
Clients and Money
Notalldesignersaredrivenbymoney.Scoresofdesignersaremuchmoreinterestedin
theartisticthanthefinancialaspectsofdesign.However,alldesignersneedmoneyto
survive.
Reframing financial negotiations with clients means designers must be fully engaged in
an active conversation with the client. They need to be confident about their ability to
use design to meet their client's business goals; believe in the value of their work; and
bewillingtoaskforfaircompensation.Moneyoftencoincideswithissuesofself-worth,
so you must believe in yourself and your abilities as a designer before negotiating fees
in order to achieve the best outcome financially and creatively.
Tips for Dealing with Clients About Money
•Beclear.Whatexactlydoesthepriceinclude?
•Definepaymentterms.Whendoyouexpecttobepaid?Uponcompletion?Within
thirtydays?
•Sticktothefee.Ifyoumustraisethefee,explaintheincreaseinachangeorder.
•Statethenumberofrevisionsandsticktothem.Noteanyexceptionsoradditionsin
a change order.
•Keepgoodrecords.Providetimesheetsandexpensereceiptsasabackuptoyour
billing if the client requests it.
 
 
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