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Pricing Guidelines for non-profits
Your help please
dwhitesock




msg:780112
 8:21 pm on Apr 9, 2004 (gmt 0)

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.

Thank You.

 

KS_Katz




msg:780113
 8:44 pm on Apr 9, 2004 (gmt 0)

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.

dwhitesock




msg:780114
 8:57 pm on Apr 9, 2004 (gmt 0)

Thank you for the response. I do like the non-profit, so helping them out will not be a problem.

Thanks.

encyclo




msg:780115
 12:02 am on Apr 10, 2004 (gmt 0)

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.

dwhitesock




msg:780116
 1:27 am on Apr 10, 2004 (gmt 0)

encyclo,

Thank you.

D_Blackwell




msg:780117
 4:49 am on Apr 10, 2004 (gmt 0)

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.

choster




msg:780118
 4:57 am on Apr 10, 2004 (gmt 0)

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.

dwhitesock




msg:780119
 5:40 am on Apr 10, 2004 (gmt 0)

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?

D_Blackwell




msg:780120
 6:54 am on Apr 10, 2004 (gmt 0)

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.

ctsolutions




msg:780121
 7:13 am on Apr 16, 2004 (gmt 0)

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.

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