How to Price Your Work - ConvergeSE 2015

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.

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Brad Weaver

April 16, 2015
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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

  5. None
  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

  30. None
  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!