|Pricing Guidelines for non-profits|
Your help please
I have been asked to do some work for a non-profit. This would be my first job for a non-profit. Having never been in this situation, I am asking for some advice.
What are the guidelines for quoting a price? Since I offer hosting and maintenaince as well, what kind of rules are there to follow?
Your help and advice would be much appreciated.
I work for a non-profit and most of them can handle the standard pricing. If you like the non-profit and want to give them a break, offer to give them a discount as a donation and then write it off at the end of the year.
Thank you for the response. I do like the non-profit, so helping them out will not be a problem.
The majority of my clients are in the non-profit sector, and my prices are set in consequence. KS_Katz is right about pricing and donations - check out the tax situation where you live first, though, to maximize the benefits for all.
All clients have limited budgets these days, and especially non-profits, so very careful planning is needed to help them get the most out of their limited funds. Other than that, there is very little difference.
Keep in mind that although they are non-profit, you are not. Also, there is no shortage of "non-profits" throwing a ton of cash around on salaries, buildings, fund raising, and the like - while at the same time crying "non-profit" to anyone they can squeeze. Be sure that you feel good about why you choose to give a cut rate.
Non-profit is a pretty wide net. You could mean a small local volunteer charity with no office, no paid staff, and a budget of just a few thousand dollars a year. Or you could mean a large research institute with hundreds of full-time staff members, a gleaming hq building, and a budget in the tens of millions of dollars.
My clientele is basically 100% non-profit groups, not really either of the extreme categories I described above but in the middle. Seeing as the service I'm providing is the same no matter who receives it, I don't provide any discount because they may have a particular tax status or not, though in negotiating the rate how I feel about their work may play into it-- just as in the for-profit world, I might charge a lower rate if I get along well with the person hiring, or a higher rate if I have qualms about some aspect of their operations.
So, my understanding is this... just like I evaluate each and everyone of my 'for-profit' clients, I will have to evaluate each of my 'non-profit' clients just the same?
One of the first things I learned in sales was that your potential client can only spend what they have...
I have spent the last 7 years in radio. Mostly on-air, but very close to the off-air operations. I understand the in's and out's of advertising. Knowing that the internet is just another form of marketing, I understand the importance of a budget.
In your opinion, does everything come down to the budget or the type of project?
|One of the first things I learned in sales was that your potential client can only spend what they have... |
Can they afford YOU with what they have. If I want a BMW but can only afford a Chevy, I don't go shopping for driving gloves. The question may be "Do you want/need the business?". Is the money acceptable and/or the project worthy?
Everything comes down to paying the bills and making a living.
I also offer some of my NPOs reduced rates and charge others the standard. But in every case, I tell them about techsoup and discountech, which have donated software available to NPOs. (I hope I'm allowed to mention the sites by name-I don't work for them!) They do charge an admin fee, with Microsoft costing the least..it works out to about $8 per copy of XP Pro and similar for other products. I often find that by telling a new NPO client about that site, I save the client so much money that they can afford to pay my full rates; of course whether it helps them depends on whether they actually license their software and if they're planning any upgrades.