I get this question a lot since my new book, “The Creative Professional’s Guide to Money” came out.
So I’ve been trying to find out.
Last month, I recruited 10 designer to join me for a “Pricing Call.” I gave them all the specs for a sample web site project and an estimating worksheet to fill out. Then we all got on the phone together for 90 minutes and each participant described how they got to that price. Here’s what we saw:
- The prices ranged from $2800 to $22,000!
- Number of hours spent was 50 at the low end and 115 at the high end.
- Hourly rates ranged from $36.50 to $275
The experience of the participants ranged widely also. We had relatively new designers who had only done a couple web sites, as well as veterans who’ve been doing them for a while with a clear process in place both to execute and price the projects.
When I wrote about this in my Quick Tip from Marketing Mentor, one response I got attempted to explain the disparity, suggesting that it “speaks to the wild variation in pricing models and fee structures…but also the fact that people should be asking more questions before quoting.”
We’re trying to address this, to educate designers and other creatives about how to price, to learn from others who’ve been successful at putting a process in place. That’s where the next DesignCast comes in: “The Pricing Game” on June 14 at 4 PM EST.
During the DesignCast, 3 designers will each describe their process for getting to a price for 3 different projects — a non profit corporate ID project, a web site project and a 3D promo. (Sign up here).
But the question stands, what are the main problems you face when pricing a project? Post your questions here and we’ll try to get you some answers.