Pricing can be difficult unless you break it down into bite-size pieces. I just wanted to share how I do it in the hopes that it helps someone else out there. It is a repeatable process that could take the fear out of undercharging.
Start here by familiarizing yourself with the Agile Methodology way of road mapping. It is simply thinking about every deliverable in the project and every task it takes to mark it complete. I should mention this may have a graphic design point of view but it can be applied to any type of work.
TIP: Here is a template you can use. I even included a creative brand roadmap project as an example.
Bite 1
Thinking Ahead: A Very Simplified Road Map Example
Project: Creative Brand Development
Let’s jump to the last Deliverable in the project:
Create Brand Guidelines
Layout round 1 (7 hours)
To include all final brand elements: logo, type, color, photo or illustration style
Email client guidelines to review (30 min)
Client to provide feedback via email within 2-3 days.
Layout round 2 (3 hours)
Email client guidelines to review (30 min)
Client to provide feedback via email within 2-3 days.
Consolidated feedback received and apply to the layout. (1 hour)
Output: PDF
Upload final files to the client file share drive (30 min) Client to share access. (Client requested this method)
Based on this it will take us a total of 12 hours total to create brand guidelines during a brand development project. You can see how I make it clear to the client what they will experience and receive. The more detailed you can get the better. We will have about 3 rounds of design, they will receive it via email, it will be a pdf, and so on.
Transparency takes the fear out or saying yes.
The things I would need from them also jump out clearly.
I would need access to upload the files to the client's server.
I would need them to get back to me in the time we are agreeing on. In this example 2-3 days per round.
I can clearly see what could possibly be a roadblock that could hold up this project.
What if they get back to me in 5 days?
How about they wait until we are done to put in a request to their IT department to give me access to their server? Is it late?
What if we need 4 rounds of design?
This would prompt me to bring up how important it is to get back to me on time if we are driven by a due date. I would check in on day 2 to be sure to remind them. I could also state that a delay in the review process would result in the due date changing. I would make sure that is all in the contract. I would add a note that the price could change if another design round is needed. All things I need to think about and get an upfront agreement. I like to share roadmaps with clients so they know what to expect. This is a simplified version of this but you get the idea.
Bite 2
The Cost of Doing Business
One last thing I account for is overhead. I pay for software, hardware, contractors, workspace (even though I work from home). I tally up what that costs a year and break it down for the task at hand, by the hour, or day. Whatever works for the work. Even though I am using a time-based system, sort of, as a foundation to quote I don't share the estimated time with clients. They don't really care about it. They just want results. I offer a flat rate system. I hate billing surprises, so I treat people the way I want to be treated. Clients like that they know a rough total for the project. Yes, the price could fluctuate to buy creative assets but not by much. It is rare but sometimes with small projects after the work and overhead are tallied the amount feels low. This is just a foundation price. Pad it up until it feels like about what the value you bring to the table based on your talks with the client. Add your rush fees if needed. Not hard stuff here, it just takes a little bit of planning ahead. The great thing about road mapping is you can reuse and customize roadmaps. The hard work is really just building the first one.
This is a very easy way to price but it is not quick. My advice is to be sure that you use your time wisely. Weed out prospects that may not have the budget for your expertise. On a preliminary call throw out your min price for the type of work they need. By road mapping your common project types this will be very easy to do.
Final Bite
Wait! You didn't tell me how much to charge!
I know the toughest thing is nailing down the hourly rate. In all industries, it is true that there are 3 tiers of pricing. I will put an example of what that means if you are a graphic designer. It should not be hard to find out what your industry rates are with a bit of googling.
Entry-level (0-5 years) $ / $50 min graphic designer.
Experienced (5-10 years) $$ / $80 min graphic designer.
Veteran (10+ years) $$$ / $150 min graphic designer.
A good rule of thumb is if you have lots of work and not lots of money then you a probably undercharging. The reason your prices increase is your level of expertise increases. Doing something as a "veteran" in the industry you will be faster and possibly better. You should get rewarded for time saved not paid less because it took less time. Never second guess your value. Talking prices with people can be intimidating but trust me, a few practice runs will take all of the sting out of it. You are worth it! After all, that is why they reached out to work with you.
Happy to answer any questions you may have about this process. Happy pricing!
