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Pricing Your Work

GD245 Professional Design Practice
by

Lisa Langenhop

on 13 November 2013

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Transcript of Pricing Your Work

PRICING
PROJECT SCOPE
What are the deliverables?
What is my pace of working?
How many hours will be required to design?
How many hours will be required for external tasks?
Hourly vs. Flat Rate
HOURLY PROS
If it's tedious update or adjustment work, hourly is the best monitor
Hourly gives your client incentive to be upfront and well planned before starting the project.
Hourly allows you to assign specific values to unforseen add-ons
Clients can take advantage of a Flat Rate offering

FLAT RATE PROS :

Flat Rate can allow you to assign value as your get faster and more efficient, while disguising the actual hours required
Flat rate provides clear value to the deliverable
Clients can be alarmed by hourly pricing as they fear every request will add to their cost = strained communication
There is no
exact formula
Each project may be priced differently
A lot of factors come into play
You will make mistakes
Pricing is always a developing target; it will change along with you and your business
Learn your own skills and timelines
Four Rules for Setting a Price
DETERMINE YOUR HOURLY WAGE
(Expenses + Salary)/Hours Worked Per Year = Hourly Wage

DEVELOP BASE PRICES
(Hourly Wage x Estimated Time To Complete) x
Complexity Level = Base Price

DEVELOP PRICES FOR ADDITIONAL REQUIREMENTS
Assign a complexity level system and put them into the
formula above.

DEVELOP PRICES FOR OUTSOURCED WORK
(Quote From Contractor x 1.10) = Price
Pricing Your Work
HOURLY = SERVICE DELIVERABLE
FLAT RATE = PRODUCT DELIVERABLE
PRICING
EXPERIENCE AND TALENT
How long have you been in the field?
What relevant experiences do you have?
How valuable are your services compared to your competition?
Requires honesty. Don't over-value or under-value your services.
PRICING
TIME
What does the rest of your schedule look like?
Law of supply and demand - If your schedule is packed, you charge more for a fast delivery
Client can choose 2 of the 3 : Fast, Cheap, and Good
The major point I wish to convey here is that all designers need to work smarter in independently determining what their talent, skill and expertise are worth and charge the client accordingly without question or apology. Being smart in determining what you should charge for your work will hopefully allow you to “work less, charge more” in the future.
-Jeff Fisher
ADDITIONAL RESOURCES
http://freelanceswitch.com/rates/

http://freelanceswitch.com/money/nine-factors-to-consider-when-determining-your-price/

Graphic Artists Guild Handbook of Pricing and Ethical Guidelines

http://designsalaries.aiga.org/
Work for Trade / Pro Bono
WORK FOR TRADE
Mutually beneficial interaction with no money transaction
Great way to build relationships, problem solve, etc. with no money risk or investment
Agree on a contract and deliverables on both sides before proceeding

PRO BONO
If you do pro bono work, make sure the gifted value is still understood
Provide an invoice with no payment due
* Images from : http://jeremyandkathleen.blogspot.com
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