I get this question a lot. Not surprising, since illustration and animation don't exactly have their own aisle at Safeway. Most people who need my help aren't usually up on the recent rates for my services. It's not exactly gasoline or the Dow Jones.
The easiest answer to this question is nothing. I don't charge anything per hour.
No, it's not free! I just don't bill hourly.
The old paradigm of billing per hour is shifting in many service areas and I'm happy to be one of many leading that shift.
So that still begs the question, how much do you charge?
Very simply, I use a project-based fee system. It's based on a lot of different variables and most every project is different. I do have project types that I get consistently, and over time I've been able to work out a rate that's in line with my industry market and comfortable for me and my clients.
That said, it's never a quick rate that I can quote from a sheet, like auto parts or dental x-rays. See, one thing I really insist on doing is treating each client as an individual with their own needs and budget. I like being busy, but I hope I never get to the point where I have an assistant quoting prices from a rate sheet. Not exactly the personal touch, is it?
Communication is a big part of figuring my rate. So the first thing I say when someone asks me how much is, "Let's talk!" Then I start asking a million questions. Those questions not only help me understand how to help them, but they inevitably save money. Several times I've had a client tell me they needed a certain thing and ask me how much it is. By the end of our interview we determined they either didn't actually need that part or could do it much more cheaply.
How's that for value? Even before they've started work with me, I just saved them money!
I'm honest and upfront about my rates with each individual client. I explain my project rate in detail with my clients. Everything is spelled out and questions answered before anything is started (those contracts help, too).
I also feel that each client's budget is personal information. Does that mean I would charge differently for a four-color logo for two different clients? It's possible, but I might charge them each the same. The point is, unless they decide to swap budget stories at the local pub, our communication is confidential.
It's human nature to want the most value for the least money and try to get it. I know that when I get any kind of contracted work done that's how I feel.
I'll admit it, negotiating rates is my least favorite part of my business. So far it's always worked out nicely and it's a relief to get the money part out of the way and start focusing on the project itself.
So how much do I charge? Tell me all about your project. I'll ask some questions, I'll recommend some things and give you the best rate I can. Whatever the budget or the rate, we should each come away with the feeling that we're getting a great deal.
Just remember my hourly rate. It's easy. It's nothing.
Monday, July 7, 2008
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3 comments:
I do the same thing. It used to be easier to charge hourly in this industry, but i find these days that both the client and myself would rather know ahead of time what the terms and charges will be.
BTW, I have awarded you today. Please check out my blog to receive your award!
Great post! I think you're right on the money with this one (pardon the pun).
Asking questions is always the best way to help someone determine what they really want/need/expect and then help you figure out how to best deliver.
Very insightful.
Here's a link to a post I wrote a couple of months ago about when the cost of business is too high. There's always something to think about, isn't there?
http://www.culturesmithconsulting.com/news/2008/05/13/when-business-costs-too-much/
Kate, you're awesome, thanks! Now I need to figure out my Big 7 and nominate!
Cheryl, puns are phunny. Use them often, I say.
Your post topic has been on my mind all week!
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