Pricing jobs can be one of the most frustrating parts of the creative process.
Are your rates too high or are you leaving money on the table?
Should you charge an hourly rate or a flat fee?
This useful guide, full of valuable advice, will help you determine what’s the best pricing model for your business.
Pricing hourly punishes efficiency.
I’ll paint a picture as to why this is a flawed pricing model: Two designers are hired to produce posters for a music festival. Both have the same hourly rate of $100 per hour (a reasonable rate for someone who’s been in the biz for a few years and has a few accolades under their belt), but one designer works much faster than the other. Both are equally talented, but one is far more efficient. At the end of the job, the designers turn in their invoices—he worked on it for a total of 18 hours and she a total of seven hours.
How do you know if you priced right?
If the clients write back immediately and say, “These numbers look great! We’ll send along a contract for you to go over in a few days!” It probably means your prices are too low.
If they write back and try to negotiate you down a little bit, you were probably pretty spot on, and if they write back and say that this is well beyond their budget, you get to decide whether or not you want to figure out a way to work within their budget or whether you want to walk away and take one for the team.
Read the entire article here: Co.Design