What's your time worth? Putting a value on your design skills
You have decided to go for it. You have the talent and
determination. You know your skills are marketable. So what do you
charge for your services? Even more important - what will a client pay?
For most Creative it would be easier to figure out the national debt.
Not surprisingly, a lot of designers have no clue what they're worth in
the current advertising marketplace.
That is why
they're not accountants. But if you're going to be profitable, being
compensated fairly and adequately can make all the difference to your
success. Or lack of it.
Factor in all the variables
There
are a lot of things to consider when you're setting up a fee schedule:
your location, the economy, your competition, your experience, your
length of time in business and of course the client. All of these
should influence your decision. No one can tell you what to charge, but
here are some basic guidelines on how to present yourself and your
value to potential clients
-- Design flexibility into your rates --
 Charging By the Hour: This
is by far the simplest way to charge for your time. And its one that
most clients (big and small) can relate to. Start by checking out the
competition. If you're going to be a Web-based business, do a thorough
online search of other graphic design shops or freelancers offering
comparable services. Contact them. Get real prices. Have them send you
a rate card if they have it. Or call design shops in your city, pretend
to be potential client (a small stretch). Ask what they would charge
for a single ad, for a one-time campaign, for an on-going project (like
a newsletter), or any other type of project you might be find yourself
handling.
Give Me a Number: So what can you
really charge? Top freelance designers in today's market can ask
anywhere from $75 to $150 an hour. Those who are less experienced
usually pull in from $35 to $65 an hour. Bigger companies are more
likely to pay the high end rates. If you're unsure, ask for their
"standard" freelance rate and negotiate up or down
from there. And of course, remember to price yourself competitively
(depending on what you gleaned from your research). Speed is
everything: Keep in mind that speed is a 'make it or break it' factor
when you charge by the hour. If you're too slow, you may end up losing
your shirt by having to cut time if the client balks at the price. On
the other hand, you shouldn't be penalized for being fast. If you can
turn a job around super quick, pad your time to make sure you're not
getting hosed.
Charging By the Project There are usually two types of jobs designers choose to price by the project:
1) Specific pieces:
When you specialize in only a few design services, say creating small
space print ads or corporate I.D.packages (business cards, letterhead,
etc.), it's easier to offer a flat fee based on the project. This works
great for single jobs like brochures and even Web sites, rather than
multi-media campaigns.
2) Complex projects: When
a job involves in-depth creative, with a considerable amount of back
and forth communication between a designer and a client, usually it's
priced by the project. Mainly because it's easier to estimate time for
a large project as a whole, instead of tracking dozens of smaller
increments of time. Plus, clients concerned about hours racking up are
more comfortable when they know there's a cap on their spending.
What's the catch?
You've got to have enough experience to know how much time it takes to
create a piece of advertising in order to put a profitable price on the
job. Guessing is not a good idea. Leaving the number of hours
open-ended is also not smart. Stick with hourly rates unless you're 99
percent sure you can estimate accurately. And even then, always specify
"up to a certain number of hours" in your client
agreement. This tends to curb unnecessary client revisions.
What are designers getting paid?
Small one-man shops are charging anywhere from $5,000 to $15,000 for
Web site design (depending on whether or not it includes HTML
production). For a big company that's a drop in a bucket compared to
paying $700,000 to a major agency. But remember, it's still a
considerable chunk of change to a fellow small business owner.
Magazine
ads can run from $500 to $1,000 for design alone. Letterhead packages
can start at $2,500 dollars. Newsletters at $5,000. And design for
4-color brochures can range from $2,000 to $10,000. Of course, these
are starting points. Pricing really depends on what your market will
bear, which only you can determine through research and some trial and
error.
On a monthly retainer
This
can be a sweet deal if you have a solid relationship with a client and
you have ongoing projects that demand a set amount of your design time
every month. Like a Newsletter. Or monthly Web site maintenance. Unless
you're a major agency, a retainer arrangement usually evolves as the
need arises. Clients are generally more receptive to paying a monthly
fee for ad services after they've come to depend on you for a while.
Once you've established a level of trust, suggest a retainer fee based
on the number of hours you dedicate to their projects. But don't get
crazy. It's better to have a steady $1,000 a month for updating a
newsletter than getting $5,000 once or twice until the client decides
your price is too high and takes it in-house.
 Through Trade-out
Before
you do any trade-out, ask yourself two questions. a.) Do you really
need the services you're trading out for? and b.) Will doing the work
help you network your business at some point? If the answer is yes (to
at least one of the questions), you're good to go. Otherwise steer
clear, so you don't spend your valuable time on stuff that isn't going
to further your bottom-line.
When you're the new kid
Remember,
if you don't have much in the way of a portfolio, you're going to have
to give more to get your foot in the door. Most clients will expect
some sort of price break to make up for the risk of working with
someone who is an unproven commodity. Get the client first, you can
always increase your rates down the road, once they're familiar with
your quality and turn-around time, etc. That doesn't mean you should
work for slave wages, if you charge too little, clients won't value
your brain power, which after all, is what you're selling.
About the Author: Author: MJ Page/ Posted & Edited by Bharat Bista
References: Dallas Graphic Design-Dallas Website Design -Website Design Dallas
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