Today we are going to break an unwritten rule for agencies: We’re going to reveal an important page from our playbook on how we price a project. One of the last things a business should hide from a potential client is how pricing works.
In the design agency business, it often seems that the status quo for pricing a project involves the old car salesman approach, where no two cars sell for the exact same price and to negotiate the price, you must pass scraps of paper back and forth until you reach an agreement.
I believe these days are gone. In the Information Age the consumer is in control and has the ability to discover exactly how much a thing costs. So honesty and transparency must be at the heart of pricing a project.
How we do sales
Before starting Blue Flavor last autumn, we all agreed that we wanted to do sales very differently than we’d ever done it before.
We agreed that we didn’t want to have a “sales guy” doing all of our business development for us. Having worked with many agencies, we recognized that we’d be doing the client a disservice by not putting someone incredibly knowledgeable about our product as the primary contact.
So the four Blue Flavor principals share all business development responsibilities. Each of us acts as the primary conduit for the client, for all projects. This allows us to answer questions and provide expert recommendations at any point, and reduces the back-and-forth, middleman problem.
How do you put a price on something when you don’t know what it is?
We don’t always get a clear project direction from clients. Sometimes we literally get a big idea written down on the equivalent of a napkin, while other times we may get 30-page Requests for Proposals (RFP’s) that provide excruciating, maybe even unnecessary, detail.
Regardless of how clients document their needs, they often only know the rough strokes of the how to reach their goal, not the specific nitty-gritty details (which often involve the majority of costs). But why should they? Helping them find what they want, and (more importantly) what their users want is why they hire us!
A crucial roadblock to accurately pricing projects is that proposals happen so early in the process. Vendors are only allotted a couple of meetings, phone calls or document in which to understand the project. We do our best to come up with a fair and accurate price, but it often feels like a shot in the dark.
To deal with this fundamental and common problem, most agencies pad their estimates. And pad is bad. So we don’t pad ours.
You can’t negotiate up
A good friend always tells me, “You can always negotiate down, but when was the last time you negotiated up?” Good advice, but it somehow feels dishonest to overshoot a project just to allow room for negotiation.
Saturn revolutionized car buying by simply listing a car’s price according to what it actually costs. They talked to consumers and found that they hated negotiating for price. They wanted to come in, pay a reasonable amount of money and walk away with a good car.
I think one key message here is that a “reasonable” amount of money is subjective. Sometimes the client doesn’t know the cost of what it takes to implement a content management system for example, and sometimes they don’t fully understand its market worth. Sometimes they can overvalue the price based on bloated projects from the past.
The second key message is that the value of the end product is also subjective. What is gold to one person is lead to another. Subtle differences in business goals can create very unique outcomes.
The point is, they are asking us “what is reasonable to us?” and looking to uncover the value we can add.
Pricing Poker: Bluffing, Budgets and Trust
One of the great mysteries of pricing a project is budgets. Vendors always need to know budgets, but clients never want to reveal them. We ask every client if they have a budget we’re expected to work within, and every agency I’ve ever worked with has asked the same. But very few clients ever reveal this crucial detail.
Having been the client on many occasions, I usually have a price in mind. The problem is, if I say I’m willing to pay $15,000 for something, proposals magically come back priced at about $14,999. On the other side of that coin, every book on consulting says never ballpark a project, even though the client always asks for it.
I find it funny (in a sad sort of way), that we often start out our partnership bluffing, with no one saying what they are really thinking. Like how much they are willing to pay and how much they think the project should cost (again, using scraps of paper in the car dealership).
The budget reveals a lot about the client and the project. We use it as a barometer of how serious a client is, if they have given their project serious consideration, how much they understand about the project, etc. We also use the budget to evaluate possible return on investment scenarios, help define scope, determine whether the project is cost-efficient for us to pursue, and to see if we can even do the project at all.
Though every book I’ve read on the topic of pricing says to never, ever ballpark, I have a tendency to do so. If they can’t disclose the budget I typically throw a few numbers from previous projects to help gauge the scope of what we are talking about. This is a good faith effort to start a discussion.
I’ll say, “we worked on a project similar to yours and the final cost was xx” I’ve had clients reply “that is xx times more than it would cost to do xx!” The final blank is often some completely unrelated product relevant only to their business and impossible to compare other than on a pure cost basis. Still other clients have said, “I don’t think you understand my project, because you are estimating far less than xx.”
While this is very awkward part of the discussion, it is almost always followed by candor. It’s as if telling the truth opens a door that can’t be closed.
Price what it costs
One thing we firmly believe in is pricing a project for what it costs. I have seen situations where someone comes up with a number, then doubles or even triples it randomly to pad the rate for unforeseen circumstances. Addressing uncertainty about the project by haphazardly increasing the price is a strict no-no for us, and is not something I would suggest anyone do.
When we price out a project we not only price out what we know about the project, but also detail what we don’t know. We come up with worst-case scenarios, address risks, and point out all the things we think could impact meeting the goals of the project.
When we make an assumption, we call it out. And if this price is going to get you three comps and three iterations, we try to set that expectation up front.
To come up with a number, try using the following formula:
task x time(complexity x effort) x rate = price
Let’s break this down, by using the example of creating a mockup at say, $100/hr (we’ll use simple numbers, because I was never good at algebra): task is the quantity of the work (e.g., three mockups). Time is the value of complexity multiplied by effort, or hours to perform. This is the trickiest part of the equation as these variables are unique to every person or agency. For complexity, start by using a three point scale, 1 being easy or ideal circumstances that take the normal amount of time, 3 being fairly complex and taking 3x the normal amount of time. For effort, enter the ideal amount of time it would take you to complete the task, let’s say 10 hours to produce one mock-up.
So for our example, the formula would look like this:
1 mockup x time(1×10 hours) x $100 = $1,000
Three mockups would look like this:
3 mockups x time(1×10 hours) x $100 = $3,000
A slightly more complex mockup might look like this:
3 mockup x time(1.5×10 hours) x $100 = $4,500
And a complex or challenging mockup might look like this:
3 mockups x time(2×10 hours) x $100 = $6,000
And so on. Start with a three-point complexity scale using the quarter points if necessary (e.g. 1.25, 1.5, 1.75 etc). If you feel you need to use a five-point scale or even a ten-point scale I would imagine you haven’t figured out your hourly rate.
Know Your Hourly Rates
I talk to a lot of people in the industry about their rates, and it amazes me how many of them don’t know their hourly rate. Many people charge by the project and take what they can get, but those prices should be factored on a baseline hourly rate.
If someone is doing billable work and doesn’t know his or her baseline hourly rate, I would bet they will be out of business in 18 months.
Figuring out your hourly is very simple (sorry, more algebra coming):
(expenses + salary) ÷ hrs worked per yr. + margin = hourly rate
This one takes a little more explanation. For expenses estimate your overhead, your rent, utilities, insurance, benefits, supplies, and any cost of doing business per person (which can often be as much as 30-50% of your gross revenue per person). For salary, decide on a reasonable annual salary. Refer to the AIGA/Aquent Design Salaries site.
Divide that sum by the hours worked per year, meaning of the 2,000 hours typically worked per year (40 hours a week for 50 weeks). How much of that will be billable time? The other way to look at this problem is to figure how many billable hours you work per week and multiply by the weeks per year you plan to work (typically 1,500-1,700 hours per year). Then add in a reasonable margin, usually between 10-15%.
So the formula for a low-level web designer might look like this:
($20k expenses + $60k salary) ÷ 1,500 hrs + 10% margin = $58.66/hr
Of course everyone has different comfort level, certain cities cost more to do work in, etc. There are a great number of factors that can affect rates. Knowing and understanding how these work is mandatory for both vendor and client.
Hourly vs. Project Rates
There are typically four methods of billing for projects: Per Project, Hourly, Per Diem, and Retainer. I’m going to focus on the first two, since they are by far the most common.
Most projects are charged on a Per Project rate. The idea here is that the vendor can accurately guess the scope and attach a fixed price at the beginning of the project. This in invariably never the case though, so scope and price is often padded and margin added to protect the vendor from additional scope creep.
The theory of Per Project rates are very karmic. The vendor underbids for some projects and makes less, and others they are able to make huge profits from. The problem is that one way or another somebody loses. Either the client pays more than the project is worth (more than its market value) or the vendor eats into their profit.
Hourly billing is often associated more with your plumber than with a web project and has a pretty bad reputation. The fear with clients is what I call the “Stray Consultant,” where the vendor is simply billing for time and not producing any work of significant value. You tend to see the Stray Consultant in very large organizations that have many middle layers of management.
One benefit to hourly billing is that the client is responsible for increases in scope. This protects the vendor and the customer. If the project is completed early the client pays less. This puts the onus on both parties to communicate regularly and work more effectively.
This isn’t to say that working on an hourly basis is license to an open paycheck. Rather, budgets and requirements should be defined, watched and met. If the hours start to go over, this should be called out as soon as possible, before the hours are committed.
Blue Flavor almost exclusively charges on an hourly basis. Over the course of our careers in the web, we’ve seen requirements invariably shift, and often for good reason, to produce a better, more people-centered end product. We believe that the pricing structure should be flexible for every project, but also put some checks and balances in there to prevent overages in our original estimates.
Regardless of billing per project or per hour, we believe that any project is a partnership between client and vendor. That in order to mutually achieve a goal we must work together every step of the way. Communicating expectations of scope and cost is always crucial.
So What Inflates Rates?
What causes one project to be larger than another? As the client it can be difficult to understand why your project costs more than you expect (people rarely balk if the prices are lower than they expected).
Guesswork
The number one cause of high bids is guesswork. If the vendor has to guess the scope or if the scope is undefined, the vendor will assume a higher level of complexity. Note that this doesn’t mean you have to provide excrutiating detail in an RFP.
Just be very clear about your goals and expectations. What do you expect to achieve through this project and what do you expect to have in hand at the end?
Overhead
Understanding a vendor’s overhead is very important. For example, the fancier the office will equal a higher cost. Ask your vendors about their overhead, and how they account for it in their billing. Ask about their margins and profit of past years. These are all questions you have the right to ask of your vendors.
Agencies and individuals both provide benefits here and should be weighed based on the goals of your project.
Experience
Senior employees demand higher rates, so noting the experience of your vendor’s employees is important. As the client, you need to understand who will be doing the work and weigh the benefits of senior versus junior people doing the work. Ask for a rate sheet and ask specifics on who will be doing what. Don’t assume that b a principal of an agency will be working on your project just because he/she won an award last year.
Client Tips for Pricing a Web Project
Ask vendors their hourly rate, and ask them to breakdown their pricing structure. You need to know where you money is going and the vendor should be prepared to discuss how they bill. Hesitancy to do so can be a big warning flag during vendor selection.
Spend the time writing down your requirements
a well-written requirements doc or RFP will prevent dancing around price and get you talking about your project. It doesn’t have to be overly detailed. If you simply don’t know, most vendors will research and write the requirements for you for a small fee (see the retainer tip below). This can be a great way to put your relationship with a vendor to the test and set internal expectations for cost and scope.
Don’t be afraid to reveal your budget
Tell your vendor what you are willing to spend, and paint the ideal scenario. If the vendor comes back and says it is going to cost a fraction below that without telling you what you are going to get for the rate, then I would pass and move on to the next vendor.
Don’t be afraid of hourly rates
A lot of clients want to pay by the project. Per project rates are hard to estimate when you are still addressing scope, so vendors will pad their estimates quite a bit. When comparing multiple vendors, look at their hourly rates and what you are going to get for that rate. When done right, charging by the hour keeps everyone happy. Make sure to set budgets and look for ways of ensuring that budget will be kept in line.
Don’t be afraid of retainers
A lot of clients don’t even think of putting vendors on retainer, but if you have a “big idea” and don’t know the scope and need help, putting a vendor on retainer is a great way to create a temporary brain trust. Basically say, “I will pay you $5,000 per month to help me figure out this problem.” But do so only after setting clear expectations of what you hope to accomplish after each day, week, month, etc.—whatever works for you.
Buy the Graphic Artist Guild Handbook of Pricing and Ethical Guidelines
Here’s a big secret for creative projects: buy the Graphic Artist Guild Handbook of Pricing and Ethical Guidelines. It can be found at most Barnes and Nobles or Borders and is on most designers’ and agencies’ bookshelves. The GAG Handbook is one of the best tools for knowing how much things should cost.
In Conclusion
Pricing is not a mystical art, and actually involves pretty simple math. You just need to know the formula. If you are a vendor, know your market rates, your costs, and your hourly price. If you are a client, do your research, know your internal weaknesses and share your budget.
And for both sides: Pricing should be discussed up front by both sides without fear that anyone is going to reveal too much or too little. If both parties like and trust each other, there are always ways to work out an arrangement.
Remember, honest and transparency should always be at the heart of all projects.
As a web designer my self you hit every word, note for note and took the thoughts right out of my mouth.
I especially like your comments about knowing a clients budget. Its crucial, dam crucial! And it has nothing to do with me trying to scam a client but everything with project scope.
Sad thing is, I cant ask a clients budget with out feeling like a used car salesmen. Its like you have to educate your client just to talk to me?
Hello. Address your site “www.blueflavor.com” was found in a public list of resources that would like to receive advertisements. If you do not want us to place on your site ads, please go to - advertising-poll.leadhoster.com - where you can easily remove your site from the list. (Link is not “active”. If this is not the appropriate branch for this post, you can remove it.) Thanks.
Great article, I found you on seomoz and I am very appreciative that you shared this info with us. Also bought the book you mentioned, can’t wait to read it.
WORLDWIDE client base in the cell phone sector. Tremendous opportunity to get in the stock now. Check out how big the opportunity is at
Thanks a lot. A very thoughtful commentary and very thoughtful entry. I hope to hear more.
good resourse Anyway by sight very much it is pleasant to me
Thanks for the in-depth article, pricing website design services is never easy, particularly when there are so many cowboy design ‘firms’ out there - educating the client as to the real value of a solution is key in my opinion.
Pricing, the most difficult part of web design (imo). If find the only way you can work is by estimating how long the work will take and applying an hourly rate to this. However, sometimes we get calls from small businesses ringing around who want on the spot prices, this is when you have to sell your websites more likes products than a web design service
Thank you, thank you, thank you! Finally an open dialogue approach being pushed and shared with all the rest of us. I have always felt it a strange way to begin a business relationship by bluffing each other into an agreed upon price. Transparency has got to win out and makes it easier to breathe if the project goes beyond your original estimate. Thanks again.
Excellent presentation. Thanks for your valuable opinion. Our oursourcing per hr. rate is comes to $10-$15, but if it is on the basis of project total rate will be less than hourly rate. We are looking forward to associate with you.
This was a great article that highlights some of the considerations that go into setting price. I only found this today (4/20/2009), but plan to use it as a discussion starter in at least two university level management courses I’m teaching. Thanks.
An interesting article with equally interesting comments on it.
Coined by Jakob Nielsen, the King of Sameness. While this statement may read like BS, there is some truth it. People adapt to what they know, and they have certain assumptions about the way things work that cannot be ignored.
When one builds out many designs with HTML and CSS, one finds that there are a handful of the same of problems you solve each and every time. Among them: Resetting browser defaults to create a blank slate. Setting up layout and baseline grids for your design to adhere to. Creating sane defaults for type sizes, alignment, and spacing. And more. Wouldn’t it be handy to have this stuff taken care of ahead of time, so you can get to the really fun stuff designers love?
Users spend most of their time on other sites. This means that users prefer your site to work the same way as all the other sites they already know.
I thought I’d take a bit of time to talk about how we use it, how it’s impacted our workflow, and what we like about it.
Before joining Blue Flavor, I worked for The World Company, a news media company headquartered in Lawrence, KS. While there, myself and designers Nathan Borror and Christian Metts devised a sort of framework for CSS.
Totally, I really believe that promotional offers have a place today. Good resource.
Good on your
Lida Lida Lida Lida
Great article with nice info written by step by step. thanks for sharing
Excellent article. Thank you very much for posting.
Fantastic post, Creating sane defaults for type sizes, alignment, and spacing.
thanks a lot
Enjoyed your article. We cost projects on an hourly basis at £40 / $65 an hour and estimate on how long it will take to design a mock-up / 3 mock-ups, implementing a cms, developing a product search facility etc. We also always draw up a functional spec. so that the client knows exactly what he’she is getting for his/her money as part of the project lifecycle. It is very difficult putting an exact value for your time onto any project and I have to agree, asking for budgets, most people just say “As cheap as possible” or “I hadn’t really thought about it”.
I liked your article very much and I should say it helped me a lot with my research.
I must say. I like the ideas in your article.
I have great experience in this area. Feel free to contact me.
Thank you very much. A comment very kind and thoughtful input. I hope to hear more.
Thanks for this concise article it has been of great interest. Covers the issue between developers who are skilled and are creating complex items and consumers who just see ‘pretty’ without really understanding the full value of what is required vs what they are buying. Mass consumerism makes it difficult to influence a consumer who wants something like a website, without really understanding the skill required to develop it so either you end up compromising on quality and keep bowing to their demands or you can educate them on the difference. I had no idea how difficult and complex it was to create an effective website until I started to make one myself and also how complicated it doesn’t need to be, so I choose EDUCATE them and you will see the value in your work rise as your consumers perception of what you do broadens; then, simplify your own life by reusing code, building templates for all those things that I don’t understand etc because I can assure you that the average customer not only doesn’t mind, but also doesn’t care. As long as it fulfills their expectations, which is an area that you CAN control if you listen to what it is they want and apply effort accordingly (and stop trying to impress your techie friends with your beautifully written code and search engine ratings when your customer just needs a simple but visually appealing presence. Just for example! :0) )
What does the customer expect as opposed to what you think they should expect.
This is a great article. I hope you will do better in projects
This process depends on the client wanting to be straight with you.
The more I work in buisness the more I realise this is not the case.
A nice article, Its good to see ethics coming to the for in this murky industry.
You’ve written a lot and said nothing.
Excellent post, I could have used this a few months ago when I was thrust into the freelancing scene, pricing projects was the most frustrating of all.
There’s a number of typos. I’d suggest you grab someone and have them proofread it.
Umm… how is your complexity variable not identical to “padding” albeit slightly finer grained?
Great article. Thanks!
Thanks a lot folks, when I will have an agency, I will know how to appraise projects, thanks to you.
Great article Brain, I’m in total agreement with banishment of the ‘sales guy’ running your business development. I prefer our designers to liaise with the clients directly, that way you can cut through all the bs and client feels happy talking to someone with expertise.
Amazing article!!! Useful tips!
This article is very useful. Can’t wait to apply what I’ve learned from here.
Excellent presentation. Thanks for your valuable opinion.
Doesn’t pricing respond to what your product is worth to the client.
Not what it costs you to produce.
@website design
surely a sales team needs a closer. I have worked with many technicians both design and technical who would wither and die in that interpersonal environment.
Thanks for a terrific bit of advice. I always feel like I’m “looking through a glass darkly” when pricing a creative project. There are so many variables, that we are often pushed to a hybrid of reasonable per-deliverable prices, with hourly demands if a segment gets out of bounds. The “constant communication” reminder you offered was particularly important for creative types, who want to focus on the project, but not the client.
I think there are pro’s and cons of the ‘sales guy’. Customers and clients can have a single point of contact, but then they can’t creatively express the individuality of the designer - who is ultimately the person doing the work.
I am of the opinion you defintley need the creative element involved in the middle part of the sales process.
But I do belive salesman are better at creating sales leads and also closing sales deals.
So salesman opens the sales process.
technicla/desgn scopes and prices the project
The salesmens closes the deal.
Thank you for posting such a valuable, profoundly valuable article for all of us out here in trenches. Your words are brilliant. Your mathematical calculations, superb. Your voice, tremendously authentic and admirable.
THANK YOU! With gratitude, Suzanne Dion Owner and Designer Cdgi
Good read and it’s all true what you say. I’m preparing to make my own company soon and here in the ‘esports’ gaming sector i know kids from 16years old that are selling websites for 50 or 100 EUR in total. That is just epic and not fair against the other companies. But then you have the quality and endurance to ask more euros. So lets find a good hourly price between 25 and 70 EUR :)
Creating sane defaults for type sizes, alignment, and spacing. And more. Wouldn’t it be handy to have this stuff taken care of ahead of time, so you can get to the really fun stuff designers love?
Nice Work pal i think this is really great post to read on.
I think most important thing is to make your client believe in your VALUE, not price. If you have good testimonials and good quality, you will have your price.
Really great job,thanks for this useful contribution ! I put it in my bookmarks ! Congrats for the blog, this is the good way !
If you provide quality work and a strong portfolio of clients then value really is the keyword, not price.
Your points are quite interesting and should be taken into consideration but sometimes you have to mold yourself in order to convince your client
Your pricing structure sounds very fair and the fact that the client is well briefed on eventualities that you think may occur is a big plus. One thing that comes to mind is that with many web projects if the project goes over development time, the client will be charged more but if the project takes less time the client never gets a discount.
Very educative info i like the article very much. Thanx for it God bless you.
Thanks for letting us know how to appraise projects.
Amazing article!!! Useful tips!
I never seen such great blog before, great stuff you shared here
Whenever i see the post like your’s i feel that there are still helpful people who share information for the help of others, it must be helpful for other’s. thanx and good job.
I understand that coming from a designer myself!
Most informative post i have found on this topic.
The Punch Line :Honest and transparency should always be at the heart of all projects.”
@ I think there are pro’s and cons of the ‘sales guy’. Well i feel pro’s and cons are in every field so have to deal with it accordingly as well.
Awesome post you got!
Awesome job!. A truly unique one! :)
Wow you done a great job! Showing how talented you are!
Hey! It;’s a great post! Really Cool For Which Im exactly looking For!
This post is very informative! Thanks!
Nice Post, i think i will try to improve mine too!
Very nice, gives me a lot of inspiration.. Time well spent on this post.
Very Good! Thanks For a Great Post!
Awesome post, gonna bookmark this for later use.
Thanks for sharing this great article! That is very interesting Smile I love reading and I am always searching for informative information like this.
Very Good! Thanks For a Great Post!
I thought I’d take a bit of time to talk about how we use it, how it’s impacted our workflow, and what we like about it. BT Converse
Excellent article. Thank you very much for posting.
This post got right to the point! thanks alot!
Cool Blog! I Love the Info!
This post got right to the point! thanks alot!
Nice post! Gonna bookmark this for later use. Thanks
Lot’s of interesting content on your blog. Happy I found you!
Thanks for sharing wonderful article with us.
Awesome job!. A truly unique one! :)
I enjoyed your article, keep up the great work. I got the feel for what you were talking about in your post.
Hope you have a great new years.
Jena
Projected sales plays an important part in pricing the project. For example, these days of economic downturn will remain for 2 years around. So, it will further reduce the price of the project.
I really like this post. Thanks for this article, Anyone got any more info about it? I am now your blog’ s rss follower. you are now in my bookmarks.
For information on my own web applications thankyuo would I use the application i used the following web site
Considering my profession this really is an interesting article. I really enjoyed reading every bit of this post. If you have any more tips on RSS, please keep me posted.
I just wanted to thank you for posting this. Helped a lot.
This is such a nice article, i like it worth reading, you are working great, just keep working n future will be yours.
Such a great article for new designers looking to start their own design firm. This is a great resource for both client and vendor to read together to help provoke questions before the process fully begins.
I couldn’t agree more, lot sof interesting info. Great post
Your pricing structure sounds very fair and the fact that the client is well briefed on eventualities that you think may occur is a big plus
A great, lenghty article which clarifies a lot of points for me.
Excellent article. Thank you very much for posting
As long as they think they are getting Value for money I think its a very valid point.
thanks for all this resource.
I have been into a situation where a client negotiates with projects price. I just tell them that the value of work I give them is worth the money they are paying.
Great article. I come from Germany and it helped me a lot when i tried to sell projects and domains of mine. Really great guide. Appreciate your effort.
Regards BLumen
Great post folks, I think I learned great things here.
The best WP blog site, useful information and unique articles
if you chapter 13 bankruptcy rule you will NUVISION FEDERAL CREDIT UNION for free entertainment book coupon code
Thanks brian for the advise..pricing out in any industry is a major payine.until you get good at it.
This is a great article. It is very important to know if what you are getting from working is worthy. I’m looking forward for more post from you. Thumbs Up!
Thanks, I’ve been looking for tips on appraising projects.
Excellent article. Thank you very much for posting
This is a great post about pricing a project. I will use this for my top rated washing machines business at home.
-Bob
Place like here, extra
I have been into a situation where a client negotiates with projects price. I just tell them that the value of work I give them is worth the money they are paying. Great post, Congrats!!
Thanks for this article, Anyone got any more info about it? I am now your blog’ s rss follower. you are now in my bookmarks. This is a great resource for both client and vendor to read together to help provoke questions before the process fully begins. Thanks a lot!
I prefer our designers to liaise with the clients directly, that way you can cut through all the bs and client feels happy talking to someone with expertise. That is very interesting Smile I love reading and I am always searching for informative information like this. Amazing post!
One thing that comes to mind is that with many web projects if the project goes over development time, the client will be charged more but if the project takes less time the client never gets a discount. Thanks, I’ve been looking for tips on appraising projects.
You always got an interesting post brian!! Thanks alot for sharing another one!
I have the same situation we have many enquiries for large personalised gift orders and it very difficult to price the job and make a decent profit as there are lots of other companies offering similar products who sell for pleasure and not profit.
Prising is probably the most difficult to do in the beginning and you sure get some negative projects along the way to success.
id agree with that game of thrones guy.
Pricing needs to reflect worht top client not work done
Basing your pricing on what you have doen does not give na idea of what it is qorth which could be vastly higher or lower.
I usually find when talking to technical people that they dont have a clue on pricing.
Usually they want to undersell themsells as well.
Great article, I will keep your advices in mind. I usually price my projects depending on the company size of my client. My strategy is to name the price after you know who your client is. Thanks
Wow .. thank you so much !
Great post, Hope to read more of your great articles.
Hey, why are u allowing so my spam comments on your block? And what a rubbish Article you post!
Thanks for sharing! (BTW: there are indeed some spam issues with the comments..)
This is a great article. So often I have to give a step by step breakdown to how I arrive at any of my pricing. I always find that tough. But by reading this I see I’ve been doing the right things just haven’t known the proper way of explaining in. Great formula for easily explaining how it all fits. Thanks.
WOW! It ‘s great article. Thanks for your sharing. I will apply this article to my job.
Its great post and i think this is the good sharing post as well.
I have been into a situation where a client negotiates with projects price. I just tell them that the value of work I give them is worth the money they are paying.
Great post! Thanks for the tips. I work two jobs to support my family and would like to turn my “other job” into freelance work. I just created and themed my own website so am looking to bolster my portfolio before I really start to advertise in terms of services.
It is great to be able to get ideas on how to start my business and deal with potential clients on websites like blue flavor and on the drupal forums.
You seem very knowledgeable so I thought I would check out your site and am glad I did.
Feel free to comment on my site as well.
very well said. I’m wrapping up a project currently where the scope creep would have made the project entirely unfeasible if I had provided project quote.
I do however price on a per project basis, but clearly define what my quote entails. Any additions and changes will require a change order which often is presented as it’s own estimate.
This approach gives my clients the security of being able to budget an amount while not feeling as if they have limited their options as the project unfolds.
Digital memory is something that I seemingly will never have enough of. It feels like megabytes and gigabytes have become a permanent part of my every day existence. Ever since I bought a Micro SD Card for my NDS flash card, I’ve been on permanent watch like a prison guard for high memory at low prices. It’s driving me absolutely nuts.(Posted from FFBrows for R4i Nintendo DS.)
Excellent article. Thank you very much for posting
I must say. I like the ideas in your article.
Your post got some very excellent ideas. thumbs up to you! ;)
I do ask clients budget before talking any further.. It saves a lot of time for me.. My time is most precious for me..
I really enjoyed this post. I will be back and have bookmarked your site.
Your article have thrown light on very important aspect of the work we are doing, pricing something accurate and correct according to ones need is tough.
Superbe article, vraiment simple et utile. Bravo pour sa mise en ligne. C’est ce genre d’information que le public (et moi en particulier) recherche.
Fantastic article, one of the hardest things about being a freelancer is knowing what’s a fair price for both you and the client. Thanks for the advice.
I can’t agree more: “In the Information Age the consumer is in control and has the ability to discover exactly how much a thing costs. So honesty and transparency must be at the heart of pricing a project.” Excellent post.
Such a great article for new designers looking to start their own design firm. This is a great resource for both client and vendor to read together to help provoke questions before the process fully begins.
http://www.betextremesoft.com/
Thanks for share it.i agree with u
Very educative article. Thanks for sharing with us.
“You can always negotiate down, but when was the last time you negotiated up?”
I’ve worked as a web designer and also on freelance illustration projects. Setting the right price is always very difficult. Never under value your time. Sometimes it’s easy to take a dip in your estimate just because you haven’t had work in a while. But it’s better to hold out for the fee you really need.
Great work! Thanks for sharing this informative post.
Great ideas about pricing a project, thanks a lot.
Those are some good marks about prising a project and what it takes to do such a thing with a client. If you are that open to do your business I think it’s going to be easy to select you as a partner of a business project.
Thank you for the useful tips. You explained it really well! I appreciate it :)
I prefer to read this kind of stuff. The quality of content is fine and the conclusion is good. Thanks for the post.
Great article Brian, thanks very much. Although I’m employed full time I am being asked more and more to do freelance web design and development work so this is very useful in helping to put quotes together.
this was most helpful for me and my buddy.i have now got the right idea in my mind
I like your website.
Needless to say - Excellent article. Thanks a bunch for sharing this useful resource. I am sure it will be of great use for web professionals. Kudos to you :)
Good Post Sir, I find you at SEOmoz and I am very grateful that you shared this information with us. Bought the book you mentioned, could not wait to read it.
I have been into a situation where a client negotiates with projects price. I just tell them that the value of work I give them is worth the money they are paying. Great post, Congrats!!
good resourse Anyway by sight very much it is pleasant to me
Used car salesman is the right terminology
Great work! Thanks for sharing this informative post.
As a newbie, this article was really helpful, thanks for sharing!
Thank You! Finally pushed an open dialogue to share with us. I have always felt a strange way to start the bluffing relationship to the price of an enterprise agreement. Transparency win out and make it easier to breathe, if your project goes beyond with your original budget. Thanks again
That was very helpful article, i very appreciate it.
This was a nice read for me …. Thank you man !!!
This was a nice read for me …. Thank you man !!!
Very helpful article. Thanks for sharing.
Great post man, I agree with you
income www.333eur.com
Amazing article here.
pricing a project is always been hard strategy for most of the company unable to decide the right price therefore they must ask people perception 1st about the product than setup of price.
Thanks for these information. It´s really awesome stuff.
Brain, as always you are very clever and insightful. I will use your recommendations.
great information here and also thanks for not hiding behind the pricing of projects. It’s always proper business practice when you can gain a customers trust by letting them in behind the doors.
t´s really awesome stuff.
Nice Interesting post. Thank You for sharing.
Really good stuff post.
Interesting way of putting a price on a project. Will apply to my own projects
This is a very interesting conclusion, that pricing a project is always been hard strategy for most of the company unable to decide the right price therefore they must ask people perception 1st about the product than setup of price. I agree with earlier comments of which I used some lines.
Fully agree with this. This is a amazing article. Great work!
Hey genius,
Thanks again. Love it!
[IMG]http://edhardyshop.com/resources/edhardyshop.com/images/logo.gif[/IMG]
[B]christian audigier[/B] liebt Erfolg. Bevor er mit [B][URL=http://www.edhardyclub.com]ed hardy uhren[/URL][/B] weltbekannt wurde, der noch 4 anderen mit seinen Ideen zu einem festen Platz im Fashion-Himmel: Dutch. Doch aktuell ihm alles um Tattoo-Style. Immer Freund, Godfather of Tattoo [B]ed hardy parfum[/B] macht er Motive Herzen, Totenköpfen oder bekannt. des Tätowierers 4 Jahren zur Labels. Bekannt wurde [B][URL=http://www.edhardyclub.com]ed hardy de[/URL][/B] mit sehr, auch Marketing-Methode: lädt der Designer in die mitnehmen, was gefällt.
So kürzlich Britneys Spears durch den [B][URL=http://www.edhardyclub.com]ed hardy parfum[/URL][/B] und erleichterte mehrere. Selbst das deutsche Top-Model Heidi von dem [B][URL=http://www.edhardyclub.com]ed hardy outlet[/URL][/B] Style und deshalb gibt Staffel von Germany’s Next Topmodel, in der die Topmodels von Christian Audigier für gecastet werden. In der aktuellen 3. Staffel eine 4 Kandidatinnen mit der Brand und so [B]ed hardy uhren[/B] in sehen sein.Mit bodenständigem und krachendem Rock’n [B]christian audigier[/B] Roll in Venen Label und schickt nun [B][URL=http://www.edhardyclub.com]ed hardy outlet[/URL][/B] in den brands4freinds Onlien Shop. Vom 29. bis 31. Mai. Shoppingclub-Mitglieder den Roll-Style von Ed Hardy bei. Reduzierte Preise zugleich. Wer jetzt noch ist, sollte und mit ein bisschen man sich im Shopping-Club von brands4friends und [B][URL=http://www.edhardyclub.com]ed hardy outlet[/URL][/B] bei der Ed mit dabei.
Good interesting post. Thanks
Very interesting. Thanks for this post.
Fully agree with this. This is a amazing article. Great work!
Good stuff here… Thanks
oo, nice, Great article with nice info written by step by step. thanks for sharing
Good article. Thanks for sharing!
Awesome post….
Fully agree with this. This is a amazing article. Great work!
Good article. Thanks for sharing! Keep on the good job!
Hey guys, I hope this allowed, I have never used this website before so I wasn’t really sure what this was going to do. So this is just a test post. I really like this forum, it has some excellent discussions that take place.2010 the latest style converse shoes Converse pretty much established their cool kudos right from the start when in 1913 it announced it would be different to the mainstream.
I agree with this, great article. Thanks for sharing it with us!
Thanks for this. I’m just starting to do some personal projects and needed a guide to help price the project. Great detail on rates.
This looks absolutely perfect. All these tiny details are made with lot of background knowledge. I like it a lot.
Nice article! I’ve had some trouble with setting up correct prices in the past. Now that I’m more experienced and know how much time a regular website is going to take, my estimations are more accurate.
pricing a project is always been hard strategy for most of the company unable to decide the right price therefore they must ask people perception 1st about the product than setup of price…
ood article. Thanks for sharing! Keep on the good job!
I enjoyed reading your nice blog. I see you offer priceless info. Congratulations, and keep posting to us. Do have some sort of email system where your blog posts emailed to me?
Interesting info, do you know where I can find similar information? I’ve been trying to find out a little more about this kind of stuff, thanks for sharing it.