Estimates vs. Fee

[ljfagd]

How do you explain to clients that the estimate is not an official final price without losing their business? How do you make sure to get an estimate really close to the actual price? I am new at this. I just started my own business. Every client is going to have a different pickiness level, which makes it hard to guarantee satisfaction.
Thanks for any advice.
-Lisa (ljfagd)

[MPI]

One way that can work is quoting your price as an hourly rate, with a total project cost not to exceed a certain amount. This does a couple of things: it lets your client budget an amount that's more than enough to finish the job, and also gives you a hint at what their 'gulp' rate is (the price that makes them go *gulp!*).

Also, it's often easier to negotiate that theoretical maximum, since you can assure them that you probably won't hit it. And as they ask for noodly change after noodly change, you can send them updates on how much they're spending and they can control their own budget.

[PrintDriver]

In your end of the business it is probably better to have a fixed price in mind and absolutely work with a contract. Once the parameters of the contract change (ie they want more proofs or didn't supply copy on time) then it's your prerogative to change the price upwards.
Always work with a contract.

[greyghost]

I limit the number of proofs. More than 3 proofs are subject to my hourly fee getting tacked on to the proposed fee in the contract.

That's how you limit pickiness.

[budafist]

Good plan greyghost. Limited changes plus hourly fee after that is how I would do it too.

[ljfagd]

I specified that I would give 6 designs, and he could comment on them, then I would design 3, then I sould design 1. I thought that would limit pickiness. But I designed him 6 and he didn't like them much but liked a few OK. Then I designed 3 and he didn't like them, either, but said I was closer. Then I designed one that was an image of exactly what he described that he wanted, but he decided to stick with his current logo because he'd designed it himself. I have to settle for a cancel fee because it says that in the contract. Crappy! 20%! What should I do next time so that I get paid for the whole process?

[budafist]

That sucks ljfad, but I guess the the way to get paid is to ask more questions. You would have to give him a design he wants, but there's no pleasing some clients.

[ljfagd]

Ask client more questions like what?

[budafist]

Ask the client about the brief before you start any work. If they didn't really like the work you did for them, possibly you weren't supplied with enough information about the look and feel of what they wanted.

Asking questions often eliminates design options and saves time - you don't design things for them that they don't want.

Questions like target audience, competitive positioning, size of company, general mood intended etc. Also find out what colours the client prefers, what colours the client hates, images to be used etc helps out.

[PrintDriver]

Be a little more careful in your contract about where in the process your kill fee is. It sounds like you got all the way to 100% of contract before the project was killed. Be sure the client understands that once he kills the project, YOU own the copyright on any artwork produced and that he cannot go to his brother's nephew to copy your work in colors and starbursts.

[RainyTimes]

Always overestimate!

I'm fairly new to the graphic design business, but having grown up in a family business, I can honestly say, that it always works out better when you do.

Sometimes, as strange as it seems, doing that will help you to weed through people you wouldn't really want as customers anyways, and those who agree to have the work done, will genuinely appreciate what you do. Otherwise you are selling yourself short...for very little thanks.

Had to learn that the hard way.

[PrintDriver]

I'm not sure I would use the word 'overestimate'. It gives off the wrong impression.
Charge what your time is worth, offer an honest estimate, and use a contract.

[RainyTimes]

You're right PD,

I should clarify that....

When putting together an estimate, I always present the higher side of it- that way there is no hidden amounts that will sneak in at the end, and give the customer a surprise they wont appreciate. :eek:

Don't necessarily quote anything outrageously higher then it should be, I just always error on the side of it being a bit high, instead of too low.

If the final bill ends up under the estimate, as opposed to over, the customer will apprecite it, instead of the other way around -bill higher then estimate.

[PrintDriver]

The bill can't be higher than estimated if there is a contract involved. Either you honor the terms of your contract or you write a new contract if the scope of work changes - if you want to continue being hired.

[budafist]

What if the estimate allows for extra hourly changes?

[PrintDriver]

If it's in your contract and as long as you are up front about it first. You tell the client before you do the work that "here is where my contract allows for extra charges, do I proceed?". You don't slam em with a bill after the fact. It may be a waste of your time if they don't pay up.