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Need thoughts on Pricing design

projects with ambiguity

         

mgm_03

5:29 am on Mar 31, 2004 (gmt 0)

10+ Year Member



I have a situation where there is alot of ambiguity in terms of the site definition. I do not know how many pages it will have nor how many hours it will take me. It will require scripting, maybe live chat support, e-commerce for subscription services, a variety of forms. The company is an internet solutions company(broadband, hosting, etc). I am still somewhat of a newbie but feel reasonably confident about this project. To me it "feels" like a $5-6k site. Prior to this project, I quoted a different one to the same client (he owns 2 biz). My qoute was ~$1500 to 1800 for 15-20 pages which I knew was below market. However it was redesign of an existing site. I was told in private by someone else they were expecting to pay $4500.

I've looked at a variety of articles about pricing design. 4 methods appear popular: Charge what you think you can get; Charge an hourly rate based on your annual salary & cost calculations (oversimplifying here); Charge by the page; Charge by the "package". Frankly, none of the above are helpful here.

I'm not a graphic designer but I did design a new logo and family of subrands which they bought into. I spent many hours (over 30) but being a neophyte, I can't overcharge the client because I am slow or still learning.

My real value is in marketing and branding, messaging, positioning, and less so in coding. Fortunately, the client agrees but I need the quote to include my "consulting fees".

If I charge by the hour, I have to base the total $ on how long an experienced designer would take to complete it, not how long it would take me. I read somewhere the average project takes 3 weeks or 120 hours. Of course, what is an "average" project?

Sorry for the rambling here...any tips are appreciated.

yowza

7:07 pm on Mar 31, 2004 (gmt 0)

10+ Year Member



It sounds like you did the same thing that I did.

I did a site for someone for $1500, because I was just starting out. That same person then wanted another more work-intesive site. I would have liked to charge him about $5000, but it would have been too much of an increase from his expectations. If I hadn't already done the first site, I definitely would have charged him more.

I don't think you want to charge too much, or you might lose them because they are expecting a lower estimate.

I now realize that I shouldn't have undersold myself in the first place. Yet, when you are just starting out, I guess you have to undersell a little bit.

pixelkat

3:20 am on Apr 6, 2004 (gmt 0)

10+ Year Member



ok, newbies. Lesson #1. charging for work by the cheapest price is a trap you can never get out of. Learn a lesson from someone who's been there. done that. it was for print design, but I vowed as I switched over to web that it would never happen again. and it hasn't.

Lesson #2. If your work was good enough to get paid for it once, it has value. If you do an 8 page site for someone who comes back to you wanting a 30 page site for the same price, ask that person why he feels it's fair that you work twice as many hours (or more) but only deserve the same pay.

Lesson #3. Never be afraid to walk away from low pay, at least not if you have a few sites under your belt for your portolio that validates the quality of your work.

Lesson #4. Look around the web for a designer/developer you want to emulate, and then practice, practice, practice and try with all your might to become as good. You may never be as good, but you'll improve to a level you never thought you were capable of.

Lesson #5. Sometimes there's more value in pro bono work than doing work for cheap. When you provide work for free, you set the terms. You have more control. Instruct the client that his part of the bargain is that he is not allowed to make demands or changes of any kind (except for typos, wrong spelling, transposed numbers, etc). Then knock yourself out and do the best you've ever done. Then, when prospects come to you and say, "I want a site just like that", you have more control over pricing.

I've been in the biz for 7 years. Can create and build a 15 page site, concept to front-end build in about 85 hours (without interferance from the client, of course). The client gets to make a predetermined number of changes. after that the clock ticks for add-on charges. I will change professions rather than undervalue my work. If a client went to a professional ad agency or design agency and had the work done, he'd have to pay $50K+ for the same site I just charged less than $10K for, for the same agency quality work. yes, I worked for an ad agency for 2.5 years with Fortune 500 clients, so I know what clients can expect to get for that kind of money.

#6. as you get better and better, have confidence in your work. always sell your services based on value, never on price. And never be afraid to tell a prospect that they get what they pay for. If they are after the cheapest web designer they can buy, YOU'RE NOT IT!

#6.5 keep in mind that when you work for cheap, you not only cheat yourself, you lower the value of the industry in general and make it more difficult for everyone in the biz trying to make a living.