Pricing for the Web: How to Do Great Work Without Losing Your Shirt (and Soul)

Pricing for the Web: How to Do Great Work Without Losing Your Shirt (and Soul)

Learn real-world pricing strategies for web design and development services. First presented to the Atlanta Web Design Group in February 2014.

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Brad Weaver

March 02, 2014
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  1. Pricing for the Web | Brad Weaver PRICING FOR THE

    WEB How to Do Great Work Without Losing Your Shirt (and Soul)
  2. Pricing for the Web | Brad Weaver #awdgpricing

  3. Pricing for the Web | Brad Weaver Brad Weaver @suckerpunchinc

  4. Pricing for the Web | Brad Weaver Designer, UX/IA, Front-end

    Dev
  5. Pricing for the Web | Brad Weaver Let’s Be Honest.

  6. Pricing for the Web | Brad Weaver Money is uncomfortable.

  7. Pricing for the Web | Brad Weaver “Money taps into

    our deepest emotions and symbolizes what we fear, hope for, and desire in life.” ! -Mikelann Valterra “”
  8. Pricing for the Web | Brad Weaver Making Money a

    Priority Doesn’t Make You a Jerk
  9. Pricing for the Web | Brad Weaver It Makes You

    a Professional
  10. Pricing for the Web | Brad Weaver a person engaged

    in a specified activity as one's main paid occupation rather than as a pastime.
  11. Pricing for the Web | Brad Weaver It means you

    have self-worth.
  12. Pricing for the Web | Brad Weaver but… today, most

    of us are charging far less than we’re worth.
  13. Pricing for the Web | Brad Weaver Clients want to

    talk about money!
  14. Pricing for the Web | Brad Weaver Build Confidence

  15. Pricing for the Web | Brad Weaver So that you

    can answer…
  16. Pricing for the Web | Brad Weaver The Question

  17. Pricing for the Web | Brad Weaver How much is

    a website?
  18. Pricing for the Web | Brad Weaver This is gonna

    be good
  19. Pricing for the Web | Brad Weaver How much is

    a website?
  20. Pricing for the Web | Brad Weaver Clients aren’t buying

    design every day…
  21. Pricing for the Web | Brad Weaver …you can’t expect

    them to just know how this works.
  22. Pricing for the Web | Brad Weaver ***ADD IMAGE -

    Candy Mountain*** Land of Unlimited Funds
  23. Pricing for the Web | Brad Weaver We can educate

    clients.
  24. Pricing for the Web | Brad Weaver A Better Question

  25. Pricing for the Web | Brad Weaver How much do

    you charge?
  26. Pricing for the Web | Brad Weaver There is a

    Formula
  27. Pricing for the Web | Brad Weaver hours ÷ expenses

    + profit = rate
  28. Pricing for the Web | Brad Weaver hours ÷ expenses

    + profit = rate The amount of time you are available for billable work.
  29. Pricing for the Web | Brad Weaver hours ÷ expenses

    + profit = rate Average is 120
  30. Pricing for the Web | Brad Weaver hours ÷ expenses

    + profit = rate Your Total Business Costs, including your salary
  31. Pricing for the Web | Brad Weaver hours ÷ expenses

    + profit = rate 10 to 20% on top of Expenses
  32. Pricing for the Web | Brad Weaver You Have the

    Secret Formula
  33. Pricing for the Web | Brad Weaver But, It’s Not

    That Simple
  34. Pricing for the Web | Brad Weaver Value

  35. Pricing for the Web | Brad Weaver pushes market rates

    down & creates unnecessary mystery for something that should be clear Pricing in the Dark
  36. Pricing for the Web | Brad Weaver Ask Your Peers

  37. Pricing for the Web | Brad Weaver Less

  38. Pricing for the Web | Brad Weaver More

  39. Pricing for the Web | Brad Weaver Define Your Market

  40. Pricing for the Web | Brad Weaver Atlanta = 105%

    New York = 140%
  41. Pricing for the Web | Brad Weaver Your Experience

  42. Pricing for the Web | Brad Weaver UX Designer $75,000

    to $120,000
  43. Pricing for the Web | Brad Weaver Web Designer (5+yrs)

    $77,000 to $107,000
  44. Pricing for the Web | Brad Weaver Web Designer (<5yrs)

    $53,000 to $80,000
  45. Pricing for the Web | Brad Weaver Front-end Developer $65,000

    to $90,000
  46. Pricing for the Web | Brad Weaver Rails/PHP Developer $72,000

    to $92,000
  47. Pricing for the Web | Brad Weaver Find Your Rate

  48. Pricing for the Web | Brad Weaver Either way, YOU

    need to know what it is.
  49. Pricing for the Web | Brad Weaver Sharing is Caring

  50. Pricing for the Web | Brad Weaver What I Charge

  51. Pricing for the Web | Brad Weaver $100 to $125

    an Hour
  52. Pricing for the Web | Brad Weaver

  53. Pricing for the Web | Brad Weaver There is Always

    Someone Cheaper
  54. Pricing for the Web | Brad Weaver Negotiate on price

    if you have to, but don’t compare on price.
  55. Pricing for the Web | Brad Weaver Compete on quality,

    value, and fit for your business.
  56. Pricing for the Web | Brad Weaver It’s the client’s

    job to get the most work from you for the least amount of money.
  57. Pricing for the Web | Brad Weaver If they aren’t

    at least trying, you probably left money on the table.
  58. Pricing for the Web | Brad Weaver What About Quality?

  59. Pricing for the Web | Brad Weaver Does it matter?

  60. Pricing for the Web | Brad Weaver “You are responsible

    for the work you put into the world.” ! - Mike Monteiro “”
  61. Pricing for the Web | Brad Weaver Controlled Pricing =

    Freedom
  62. Pricing for the Web | Brad Weaver Higher Quality

  63. Pricing for the Web | Brad Weaver Side Projects

  64. Pricing for the Web | Brad Weaver Pro-bono

  65. Pricing for the Web | Brad Weaver Learning a New

    Skill
  66. Pricing for the Web | Brad Weaver Working on Cool

    Shit
  67. Pricing for the Web | Brad Weaver Avoid Emotional Pricing

  68. Pricing for the Web | Brad Weaver Your gut is

    not a calculator
  69. Pricing for the Web | Brad Weaver Price with pride

    and confidence — as professionals, not as technicians.
  70. Pricing for the Web | Brad Weaver Ask yourself…

  71. Pricing for the Web | Brad Weaver Can you do

    good work for this client?
  72. Pricing for the Web | Brad Weaver Can you make

    some money on it?
  73. Pricing for the Web | Brad Weaver Are you embarrassed

    by the likely outcome?
  74. Pricing for the Web | Brad Weaver You Can Do

    Good Work & Make Money
  75. Pricing for the Web | Brad Weaver “We have a

    tendency to meet our financial obligations, not our financial desires — because we want to get the gig!” ! - Freelancer’s Bible “”
  76. Pricing for the Web | Brad Weaver Enough with Emotions

  77. Pricing for the Web | Brad Weaver How Much is

    a Website?
  78. Pricing for the Web | Brad Weaver Different Approaches

  79. Pricing for the Web | Brad Weaver • Value/Project Based

    • Hourly • Retainer • Investment/Ownership • Residual Income Pricing Models
  80. Pricing for the Web | Brad Weaver Model 1: Value/Project

    Pricing
  81. Pricing for the Web | Brad Weaver • Fixed cost

    • Tied to deliverables • Paid in 50%, 33% or 25% increments Flat Project Pricing
  82. Pricing for the Web | Brad Weaver • Clients prefer

    it • Very common • Predictable • Opportunity for profit is high Flat Project Pros
  83. Pricing for the Web | Brad Weaver • Tendency to

    undercharge • Risk of going over budget and losing money • Tough to cover unexpected challenges • Commonality can lead to limited understanding of value Flat Project Cons
  84. Pricing for the Web | Brad Weaver • $2,500 to

    $7,500 for most basic custom sites • $5,000 to $15,000 for dynamic sites, basic commerce Average Flat Cost
  85. Pricing for the Web | Brad Weaver How to Calculate

  86. Pricing for the Web | Brad Weaver Your rate x

    How long you think it will take
  87. Pricing for the Web | Brad Weaver • Similar to

    Project Pricing • Difference is adding a % based on experience behind work being performed or contributors • Often used for creative and writing, not as much for development Value-based Pricing
  88. Pricing for the Web | Brad Weaver • Size of

    client can be important • Profit motivation • Knowledge of Subject or Process Depends on the Client
  89. Pricing for the Web | Brad Weaver Charge Bigger Clients

    More
  90. Pricing for the Web | Brad Weaver “Charge as much

    as you can, deliver an honest value, and never work for free.” ! - Mike Monteiro “”
  91. Pricing for the Web | Brad Weaver • A fancy

    way of saying get paid what you’re worth on flat-price projects • Marketplace • Client’s perceived value What’s the Difference?
  92. Pricing for the Web | Brad Weaver The client is

    paying you for solutions…
  93. Pricing for the Web | Brad Weaver not the time

    that it took to get there.
  94. Pricing for the Web | Brad Weaver How do I

    do it?
  95. Pricing for the Web | Brad Weaver Ask the Client

    for a Budget
  96. Pricing for the Web | Brad Weaver Don’t Make This

    Mistake
  97. Pricing for the Web | Brad Weaver Tie payments to

    specific deliverables on a calendar that are under your control, not the client.
  98. Pricing for the Web | Brad Weaver Model 2: Hourly

    Pricing
  99. Pricing for the Web | Brad Weaver • Get paid

    for what you work • Best for nebulous, undefined deliverables • Better for developers than creative • Easier to say no to changes • Rush rates are your friend Hourly Pricing Pros
  100. Pricing for the Web | Brad Weaver • Clients often

    hate it • Unpredictable • Profit requires staffing, subcontracting, or lying • Penalizes you if you’re fast • For longer-term clients, harder to raise rate • Easier for clients to kill the project Hourly Pricing Cons
  101. Pricing for the Web | Brad Weaver Hourly isn’t complicated,

    but it’s messy.
  102. Pricing for the Web | Brad Weaver Great for clients

    who always want more and change their minds constantly
  103. Pricing for the Web | Brad Weaver Model 3: Retainers

  104. Pricing for the Web | Brad Weaver • Set amount

    of money each month • Hourly, but guaranteed • Use it or lose it vs. prepaid hours Time-based Retainer
  105. Pricing for the Web | Brad Weaver • Builds client

    relationship • Steady income • Planning is easier • Greater time for creativity Time-based Retainer Pros
  106. Pricing for the Web | Brad Weaver • Clients expect

    a discount • Clients think you work for them, on their schedule • On-site time may be expected • Less valuable work to “burn hours” • Can create a backlog of work • Profit opportunity limited without staff or subcontractors Time-based Retainer Cons
  107. Pricing for the Web | Brad Weaver Model 4: Package

    Pricing
  108. Pricing for the Web | Brad Weaver • Posted publicly

    • Fixed cost • Includes multiple services/ deliverables, i.e., design and development, branding and web Package Pricing
  109. Pricing for the Web | Brad Weaver • Makes it

    difficult for clients to “bargain you down” • Good for repeat clients and agency relationships • Good for clients with multiple businesses or business units • Good for template-oriented designers • Client feels in control Package Pricing Pros
  110. Pricing for the Web | Brad Weaver • Minimal opportunity

    for profit without high volume • High volume means tight timelines • Difficult to do high quality work • Zero room for error • If you like avoiding confrontation, this is good Package Pricing Cons
  111. Pricing for the Web | Brad Weaver Model 5: Investment/

    Ownership
  112. Pricing for the Web | Brad Weaver NO

  113. Pricing for the Web | Brad Weaver “Beware of clients

    who want you to work for equity or other things that can’t be easily converted into rent.” ! - Mike Monteiro “”
  114. Pricing for the Web | Brad Weaver Model 6: Residual

    Income
  115. Pricing for the Web | Brad Weaver I wouldn’t recommend

    it
  116. Pricing for the Web | Brad Weaver RFPs & Discovery

  117. Pricing for the Web | Brad Weaver “We never respond

    to RFPs”
  118. Pricing for the Web | Brad Weaver Respond with a

    Contract, not a Proposal
  119. Pricing for the Web | Brad Weaver Discovery – Get

    Paid to Provide a Quote
  120. Pricing for the Web | Brad Weaver What did you

    say?
  121. Pricing for the Web | Brad Weaver Discovery

  122. Pricing for the Web | Brad Weaver Which is Best?

  123. Pricing for the Web | Brad Weaver • Design •

    Front-end dev (HTML, CSS, JS) • Template projects • One-off components Flat/Value Pricing
  124. Pricing for the Web | Brad Weaver • Complex dev

    • Team contributions • Repairs/maintenance • Strategy, consulting, UX Hourly
  125. Pricing for the Web | Brad Weaver • Strategy, consulting,

    UX • Repeat creative • Sites that require routine maintenance • Content Strategy/Writing Time-based Retainer
  126. Pricing for the Web | Brad Weaver • Small business

    • Theme/template based • Startups and launch sites • Good if you’re just starting out Package Pricing
  127. Pricing for the Web | Brad Weaver Key Takeaways The

    Rules
  128. Pricing for the Web | Brad Weaver 1 2 3

    4 5 6 7 8 Track Your Time Track Your Communications Get a Contract Define Scope Invoice on Time Set Boundaries Revisit / Post-mortems Manage Your Money
  129. Pricing for the Web | Brad Weaver Resources

  130. Pricing for the Web | Brad Weaver • Creative Professionals

    Guide to Money -Ilise Benun • Design Is A Job - Mike Monteiro • Freelancer’s Bible - Sara Horowitz • Double Your Freelancing Rate in 14 Days - Brennan Dunn • Rework - 37signals • The Hidden Agendas: A Proven Way to Win Business & Create a Following - Kevin Allen • Web Design Confidential - Amanda Hackwith • The Real Business of Web Design - John Waters • The Business Side of Creativity - Cameron Foote • How to be a Graphic Designer Without Losing Your Soul - Adrian Shaughnessy Books
  131. Pricing for the Web | Brad Weaver • 99u •

    Freelancer’s Union • Creative Mornings • Marketing Mentor • How Design • International Freelancer’s Academy • Business of Freelancing (Podcast) Web
  132. Pricing for the Web | Brad Weaver • Freshbooks, Harvest,

    Solo • Timely, Function Fox, Freckle • Rescue Time, Slife • Basecamp, Trello, Asana, Flow • Slack, Campfire • Ballpark, Bidsketch Software
  133. Pricing for the Web | Brad Weaver • Mark McGuinness

    — Lateral Action • Ilise Benun — Marketing Mentor • Ed Gandia — Freelancer Academy Coaching
  134. Pricing for the Web | Brad Weaver github.com/ bradweaver/ pricingfortheweb

  135. Pricing for the Web | Brad Weaver #awdgpricing

  136. Pricing for the Web | Brad Weaver “The value of

    a dollar is social, as it is created by society.” ! - Ralph Waldo Emerson “”
  137. Pricing for the Web | Brad Weaver Thank You!