How to Price Your Work - ConvergeSE 2015

How to price your creative work using 7 different pricing models to find what works best for your shop and your scenarios.

Transcript

1. How to Price Your Work. …or How I Learned to Stop Worrying & Love the Calculator
2. Hello.
3. Brad Weaver Partner // Director of Design at Nine Labs
4. @sbradweaver
6. Money is Uncomfortable
7. “Money taps into our deepest emotions and symbolizes what we fear, hope for, and desire in life.” -Mikelann Valterra
8. My Story why I’m up here
9. Avoid Emotional Pricing Your gut is not a calculator.
10. Professional (n). a person engaged in a specified activity as one’s main paid occupation rather than a pastime.
11. Clients want to talk about money … they just don’t know how.
12. How much is a website? or App, Logo, Photoshoot, Brochure, etc.
13. We can educate clients to ask a better question…
14. How much do you charge?
15. Profit & Stability Get Control with Solutions-Oriented Thinking
16. Step 1
17. Know What You Need Stop flying blind.
18. There is a formula Yay!
19. (expenses + profit) ÷ hours = rate
20. (expenses + profit) ÷ hours = rate
21. Recurring Expenses + 1/12 of Annual Expenses + 30% for Taxes
22. (expenses + profit) ÷ hours = rate
23. Additional 20% of Total Expenses
24. (expenses + profit) ÷ hours = rate
25. Number of Billable Hours for Deliverables per Month
26. (expenses + profit) ÷ hours = rate
27. (expenses + profit) ÷ hours = rate
28. ($10,000 + $2,000) ÷ 80 hours = $150 per hour
29. Your shop rate
31. It’s not that simple. If it were, we wouldn’t be here.
32. This is not your billing rate!
33. But, Why?
34. Value
35. “Clients pay you for solutions, not the time it took you to get there.” -Mike Monteiro
36. Market Rates Who, What, Where, When, How
37. Quality Good, Fast, or Cheap. Pick Two.
38. What do I do with this thing?
39. 7 Pricing Models
40. Hourly Billing Hours out, dollars in.
41. Flat Project Pricing Fixed Fees for fixed deliverables.
42. Package Pricing Publicly defined costs for tangible services.
43. Value-Based Pricing Getting paid for your brain, not your hands.
44. I take less time to get to a solution. Getting it done right without watching the clock.
45. Time-based Retainers Hours out, dollars in… but guaranteed.
46. Value-based Retainers Now we’re cooking.
47. *Retainer Agreements A critical caveat.
48. Equity or Ownership Risk for future reward.
49. Which is best and when? There’s no such thing as one size fits all.
50. Strategy/Consulting Design Front-end dev (HTML, CSS, JS) Template projects One-off components Flat/Value Pricing
51. Complex dev Team contributions Repairs/maintenance Small strategy, consulting, UX Hourly
52. Strategy, consulting, UX Repetitive/Cyclical creative Sites that require routine maintenance Content Strategy/Writing Time-based Retainer
53. IA/UX Campaigns Branding & Marketing Content Strategy Value-based Retainer
54. Core Practices Putting the “fun” in fundamentals.
55. 1 Track Your Time
56. 2 Log Communications
57. 3 Get a Contract & Deposit
58. 4 Define Scope in Writing
59. 5 Invoice on Time
60. 6 Set Boundaries
61. 7 Review Immediately
62. 8 Manage Your Money
63. Resources & Tools Get a bigger bookshelf (or iPad).
64. github.com/ pricingfortheweb
65. @sbradweaver
66. Thanks!