You’re in the Money
In our last post we identified some of the advisors you need on your team as you start a graphic design business. Lucky for you, the logistical fun doesn’t end there. Armed with your graphic design education and ready to take on your first project, you first need a pricing structure. Design firms typically charge on a fixed-fee basis. So, how do you figure out what that should be?
What Are You Worth?
First, consider the time it takes to complete different projects. From logos to collateral to business cards, what is it going to cost your firm in hours? AIGA offers some tips on how to stick a price tag on your creative muscles. As mentioned in their Center for Practice Management, factor in potential redesigns or delays caused by the client and spell out the cost of these situations upfront. Setting expectations early benefits you in the long run.
Next, what else do you need? Brainstorm all production or material costs associated with each project, and make them a line item in your fee structure. And don’t just go with the first printer you call. Just as you researched graphic design schools, research your potential business partners. Get to know your local resources and put your best negotiating foot forward. Cutting costs on overhead expenses can help you reduce your prices, making you stiffer competition.
Why Does It Matter?
With new technology and more graphic design colleges than ever before, talent is abounding. According to the Bureau of Labor Statistics, competition within the industry will be stiff, meaning that you need to distinguish your firm by any means. Be organized. Be a professional. Invest time to understand your graphic design business.
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