Pricing for the Web - Speaker Deck

Slide 1

Slide 1 text

Pricing for the Web | Brad Weaver PRICING FOR THE WEB How to Do Great Work Without Losing Your Shirt (and Soul)

Slide 2

Slide 2 text

Brad Weaver @suckerpunchinc

Slide 3

Slide 3 text

No content

Slide 4

Slide 4 text

Designer, UX/IA, Front-end Dev

Slide 5

Slide 5 text

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

Slide 6

Slide 6 text

Pricing for the Web | Brad Weaver Money is uncomfortable.

Slide 7

Slide 7 text

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 “”

Slide 8

Slide 8 text

Pricing for the Web | Brad Weaver Making Money a Priority Doesn’t Make You a Jerk

Slide 9

Slide 9 text

Pricing for the Web | Brad Weaver It Makes You a Professional

Slide 10

Slide 10 text

Pricing for the Web | Brad Weaver a person engaged in a speciﬁed activity as one's main paid occupation rather than as a pastime.

Slide 11

Slide 11 text

Pricing for the Web | Brad Weaver It means you have self-worth.

Slide 12

Slide 12 text

Pricing for the Web | Brad Weaver but… today, most of us are charging far less than we’re worth.

Slide 13

Slide 13 text

Pricing for the Web | Brad Weaver Clients want to talk about money!

Slide 14

Slide 14 text

Pricing for the Web | Brad Weaver Clients aren’t buying design every day…

Slide 15

Slide 15 text

Pricing for the Web | Brad Weaver …you can’t expect them to just know how this works.

Slide 16

Slide 16 text

Pricing for the Web | Brad Weaver ***ADD IMAGE - Candy Mountain*** Land of Unlimited Funds

Slide 17

Slide 17 text

Pricing for the Web | Brad Weaver We can educate our clients.

Slide 18

Slide 18 text

Pricing for the Web | Brad Weaver A Better Question

Slide 19

Slide 19 text

Pricing for the Web | Brad Weaver How much do you charge?

Slide 20

Slide 20 text

Pricing for the Web | Brad Weaver There is a Formula

Slide 21

Slide 21 text

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

Slide 22

Slide 22 text

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

Slide 23

Slide 23 text

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

Slide 24

Slide 24 text

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

Slide 25

Slide 25 text

Pricing for the Web | Brad Weaver hours ÷ expenses + proﬁt = rate 10 to 20% on top of Expenses

Slide 26

Slide 26 text

Pricing for the Web | Brad Weaver instacalc.com/22297

Slide 27

Slide 27 text

Pricing for the Web | Brad Weaver You Have the Secret Formula

Slide 28

Slide 28 text

Pricing for the Web | Brad Weaver But, It’s Not That Simple

Slide 29

Slide 29 text

Pricing for the Web | Brad Weaver Value

Slide 30

Slide 30 text

Pricing for the Web | Brad Weaver pushes market rates down & creates unnecessary mystery for something that should be clear Pricing in the Dark

Slide 31

Slide 31 text

Pricing for the Web | Brad Weaver Ask Your Peers

Slide 32

Slide 32 text

Pricing for the Web | Brad Weaver Less

Slide 33

Slide 33 text

Pricing for the Web | Brad Weaver More

Slide 34

Slide 34 text

Pricing for the Web | Brad Weaver Deﬁne Your Market

Slide 35

Slide 35 text

Pricing for the Web | Brad Weaver Atlanta = 105% New York = 140%

Slide 36

Slide 36 text

Pricing for the Web | Brad Weaver Your Experience

Slide 37

Slide 37 text

Pricing for the Web | Brad Weaver UX Designer $75,000 to $120,000

Slide 38

Slide 38 text

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

Slide 39

Slide 39 text

Pricing for the Web | Brad Weaver Web Designer (<5yrs) $53,000 to $80,000

Slide 40

Slide 40 text

Pricing for the Web | Brad Weaver Front-end Developer $65,000 to $90,000

Slide 41

Slide 41 text

Pricing for the Web | Brad Weaver Rails/PHP Developer $72,000 to $92,000

Slide 42

Slide 42 text

Pricing for the Web | Brad Weaver Find Your Rate

Slide 43

Slide 43 text

Pricing for the Web | Brad Weaver Either way, YOU need to know what it is.

Slide 44

Slide 44 text

Pricing for the Web | Brad Weaver Sharing is Caring

Slide 45

Slide 45 text

Pricing for the Web | Brad Weaver What I Charge

Slide 46

Slide 46 text

Pricing for the Web | Brad Weaver $125 to $150 an Hour

Slide 47

Slide 47 text

Pricing for the Web | Brad Weaver

Slide 48

Slide 48 text

Pricing for the Web | Brad Weaver There is Always Someone Cheaper

Slide 49

Slide 49 text

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

Slide 50

Slide 50 text

Pricing for the Web | Brad Weaver Compete on quality, value, and ﬁt for your business.

Slide 51

Slide 51 text

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.

Slide 52

Slide 52 text

Pricing for the Web | Brad Weaver If they aren’t at least trying, you probably left money on the table.

Slide 53

Slide 53 text

Pricing for the Web | Brad Weaver Avoid Emotional Pricing

Slide 54

Slide 54 text

Pricing for the Web | Brad Weaver Your gut is not a calculator

Slide 55

Slide 55 text

Pricing for the Web | Brad Weaver Price with pride and conﬁdence — as professionals, not as technicians.

Slide 56

Slide 56 text

Pricing for the Web | Brad Weaver Enough with Emotions

Slide 57

Slide 57 text

Pricing for the Web | Brad Weaver How Much is a Website?

Slide 58

Slide 58 text

Pricing for the Web | Brad Weaver Key Takeaways The Rules

Slide 59

Slide 59 text

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

Slide 60

Slide 60 text

Pricing for the Web | Brad Weaver Different Approaches

Slide 61

Slide 61 text

Pricing for the Web | Brad Weaver • Value/Project Based • Hourly • Retainer • Package Pricing Pricing Models

Slide 62

Slide 62 text

Pricing for the Web | Brad Weaver Model 1: Value/Project Pricing

Slide 63

Slide 63 text

Pricing for the Web | Brad Weaver • Fixed cost • Tied to deliverables • Paid in 50%, 33% or 25% increments Flat Project Pricing

Slide 64

Slide 64 text

Pricing for the Web | Brad Weaver • Clients prefer it • Very common • Predictable • Opportunity for proﬁt is high Flat Project Pros

Slide 65

Slide 65 text

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

Slide 66

Slide 66 text

Pricing for the Web | Brad Weaver • $5,000 to $15,000 for most basic custom sites • $15,000 to $50,000 for dynamic sites, basic commerce • all depends on your business and skill Average Flat Cost

Slide 67

Slide 67 text

Pricing for the Web | Brad Weaver How to Calculate

Slide 68

Slide 68 text

Pricing for the Web | Brad Weaver Your rate x How long you think it will take

Slide 69

Slide 69 text

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

Slide 70

Slide 70 text

Pricing for the Web | Brad Weaver • Size of client can be important • Proﬁt motivation • Knowledge of Subject or Process Depends on the Client

Slide 71

Slide 71 text

Pricing for the Web | Brad Weaver Charge Bigger Clients More

Slide 72

Slide 72 text

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

Slide 73

Slide 73 text

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?

Slide 74

Slide 74 text

Pricing for the Web | Brad Weaver The client is paying you for solutions…

Slide 75

Slide 75 text

Pricing for the Web | Brad Weaver not the time that it took to get there.

Slide 76

Slide 76 text

Pricing for the Web | Brad Weaver How do I do it?

Slide 77

Slide 77 text

Pricing for the Web | Brad Weaver Ask the Client for a Budget

Slide 78

Slide 78 text

Pricing for the Web | Brad Weaver Don’t Make This Mistake

Slide 79

Slide 79 text

Pricing for the Web | Brad Weaver Tie payments to speciﬁc deliverables on a calendar that are under your control, not the client’s.

Slide 80

Slide 80 text

Pricing for the Web | Brad Weaver Model 2: Hourly Pricing

Slide 81

Slide 81 text

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

Slide 82

Slide 82 text

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

Slide 83

Slide 83 text

Pricing for the Web | Brad Weaver Hourly isn’t complicated, but it’s messy.

Slide 84

Slide 84 text

Pricing for the Web | Brad Weaver Great for clients who always want more and change their minds constantly

Slide 85

Slide 85 text

Pricing for the Web | Brad Weaver Model 3: Retainers

Slide 86

Slide 86 text

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

Slide 87

Slide 87 text

Pricing for the Web | Brad Weaver • Builds client relationship • Steady income • Planning is easier • Greater time for creativity Time-based Retainer Pros

Slide 88

Slide 88 text

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

Slide 89

Slide 89 text

Pricing for the Web | Brad Weaver Model 4: Package Pricing

Slide 90

Slide 90 text

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

Slide 91

Slide 91 text

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

Slide 92

Slide 92 text

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

Slide 93

Slide 93 text

Pricing for the Web | Brad Weaver Investment/ Ownership

Slide 94

Slide 94 text

Pricing for the Web | Brad Weaver NO

Slide 95

Slide 95 text

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 “”

Slide 96

Slide 96 text

Pricing for the Web | Brad Weaver RFPs & Discovery

Slide 97

Slide 97 text

Pricing for the Web | Brad Weaver “We never respond to RFPs”

Slide 98

Slide 98 text

Pricing for the Web | Brad Weaver Respond with a Contract, not a Proposal

Slide 99

Slide 99 text

Pricing for the Web | Brad Weaver Discovery – Get Paid to Provide a Quote

Slide 100

Slide 100 text

Pricing for the Web | Brad Weaver What did you say?

Slide 101

Slide 101 text

Pricing for the Web | Brad Weaver Discovery

Slide 102

Slide 102 text

Pricing for the Web | Brad Weaver Which is Best?

Slide 103

Slide 103 text

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

Slide 104

Slide 104 text

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

Slide 105

Slide 105 text

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

Slide 106

Slide 106 text

Pricing for the Web | Brad Weaver • Small business • Theme/template based • Startups and launch sites • Good if you’re just starting out Package Pricing

Slide 107

Slide 107 text

Pricing for the Web | Brad Weaver Resources

Slide 108

Slide 108 text

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

Slide 109

Slide 109 text

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

Slide 110

Slide 110 text

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

Slide 111

Slide 111 text

Pricing for the Web | Brad Weaver • Mark McGuinness — Lateral Action • Ilise Benun — Marketing Mentor • Ed Gandia — Freelancer Academy Coaching

Slide 112

Slide 112 text

Pricing for the Web | Brad Weaver github.com/ bradweaver/ pricingfortheweb

Slide 113

Slide 113 text

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

Slide 114

Slide 114 text

Pricing for the Web | Brad Weaver Thank You!