New Business Need HELPP!!! (minor issues)

[Divine]

Hey thereee, I've been on this website for quite some time now, and I've never thought of posting anything except for now...

...I was just wondering, since I'm starting a new business (well already started) I'm kind of stuck on the pricing, at the moment the services I'm offering are as follow;-
Business cards (Design and print)
Compliment Slips
Logo Design
Letter Heads
Websites.etc

Im just wondering what kind of figure should I price these at ??

Should i do it hourly or per design???

Hellppp please

Thanks!!

[CkretAjint]

I would charge hourly for the designs. As for how much? Your on your own for that since we cannot dicuss pricing on this site. Take your hourly rate and multiple it times how long it takes you to complete each one for an estimate. Sorry, can't be of much more help.

You think you would know that by now being the long time lurker you are. *shrugs*

[Red Kittie Kat]

Hey thereee, ive been on this website for quite some time now

Then you should know we aren't allowed to discuss pricing.

Please read this from the FAQ


http://www.graphicdesignforum.com/forum/showpost.php?p=198710&postcount=8

[Virgo Nightingale]

First off, welcome aboard, Divine!!

We can't actually discuss pricing on the forum. BUT, you can check out this thread in our FAQ (http://www.graphicdesignforum.com/forum/showpost.php?p=198710&postcount=8) that should help answer some questions about how to arrive at your pricing structure.

Check out the other threads in the FAQ also, there's tons of useful info in there!

Enjoy your stay!! :)

[Red Kittie Kat]

Well there is 3 of us right on top of things :D

[Virgo Nightingale]

Right on top of that Rose!! :D

[CkretAjint]

Is that good or bad for a Friday night? *ponders*

[Red Kittie Kat]

hehe :D

[Divine]

Awwww, Dang!! lol
I'm sorry, I honestly didn't know that. Really 'stuck in the mud' with this. Oh well, I'll see what I can find, Thanks

[Red Kittie Kat]

lmao CA ... well I keep saying I need to get a life .. I guess this is my life. :D

[Red Kittie Kat]

Awwww, Dang!! lol
I'm sorry, I honestly didn't know that. Really 'stuck in the mud' with this. Oh well, I'll see what I can find, Thanks


It's quite alright Divine .. read those articles .. there is a lot of very helpful info there for you. I bet you will find the answers you are looking for :)

[CkretAjint]

Yah, it was either hang out at home and rock out by myself, or go pick up my friends cat to cat sit this weekend (which I don't want an animal in my apt)... *shrugs*

[Divine]

Yeaa, I've read some, and they just say, that 'You should work out your expense, then times your hours, and you get the price you need to set it at'?


To me, it makes no sensee, argh!

[CkretAjint]

How much do you want to make? How long does it take you to make a business card design start to finish (research, sketches, comps, changes, final product...)

Total $$ you'd like ÷ time taken to create = hourly rate = your estimate.

[Virgo Nightingale]

That's really the best we can give you, since there are simply way too many factors that go into how you price your work. Keep reading, keep researching. You'll eventually get a feel for what your price range should be.

[frankster]

Yeaa, I've read some, and they just say, that 'You should work out your expense, then times your hours, and you get the price you need to set it at'?


To me, it makes no sensee, argh!

If you can't budget and time manage and do basic arithmatic then you might be in trouble running your own business. I don't think this is the problem though.

I suspect what you are actually having trouble with is figuring out how much you can charge and still remain competitive. That I'm afraid really depends on your client base and your location. Best bet there is asking for quotes for the services you are planning on offering from other designers like yourself locally to figure out where you can place yourself in the market, not on a forum comprised of folks from all over the world. Once you figure out what is a competitive rate you hold that up against your base rate for expenses and if it offers you a lower hourly wage than mopping the floor at pizza hut, then you rethink your business plan.

[Divine]

If you can't budget and time manage and do basic arithmatic then you might be in trouble running your own business. I don't think this is the problem though.

I suspect what you are actually having trouble with is figuring out how much you can charge and still remain competitive. That I'm afraid really depends on your client base and your location. Best bet there is asking for quotes for the services you are planning on offering from other designers like yourself locally to figure out where you can place yourself in the market, not on a forum comprised of folks from all over the world. Once you figure out what is a competitive rate you hold that up against your base rate for expenses and if it offers you a lower hourly wage than mopping the floor at pizza hut, then you rethink your business plan.


Wikedd, I get what your saying. The thing is, I dont have much competion, but I dont want to charge way too much so that i'd scare my clients away. Just need to work out an average price...Which is proving to be more than i expected.
I don't know what designers are charging these day so if i think of a price now, it'll be a stab in the dark.

Thats the main thing that get me down, I just dont know what you guys charge!:(

[Ned]

Thats the main thing that get me down, I just dont know what you guys charge!:(

You don't want to know what I charge. You'd have a heart attack. ;)

[frankster]

Thats the main thing that get me down, I just dont know what you guys charge!:(

We charge wildly varying amounts because we all live in different areas, cater to different clients, provide different services and have different overheads.

You must have some competition you can source pricing from. Do you live on the moon? Are you even planning on recruiting local clients or are you going to wade into the murky depths of the internet for them?

[Ned]

You must have some competition you can source pricing from. Do you live on the moon?

I'm sorry Frankster... That made me laugh out loud. :D

[PrintDriver]

GAG handbook.
http://www.amazon.com/Graphic-Artists-Guild-Handbook-Guidelines/dp/0932102131/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1203779794&sr=1-1
Adjust for you skill level and location.

I'm concerned that you do not understand the basic math of salary + overhead / hours = price

[Divine]

Thing is I really don't know what my salary and my only overheads are ink, paper etc.

I dont really want to charge per hour, i want to charge per design.


...If that makes any sence??

[Divine]

oo forgot to add, dont really know what designers are charging these days. I dont have much competition around where I live, well non that I know of, to try and get a benchmark price...

[mojoprime]

maybe you might find a printer that would take you under their wing and offer a little guidance, perhaps in exchange for some business on down the road or something. maybe or maybe not. but i'm with PD -- get the handbook.

[Spunky Nerd]

Since you said you have already started this business what have you been using as pricing??

[Divine]

Nah I havent started as such, Ive just bought the equiptment, total came up to £4040, but I can't really start my business without a rough price, can I?

And, i dont need a printing service, I've just bought my own a1,a3,a4 printers.

[Spunky Nerd]

It seems to me that if you were going to start your own business and already have all of the equipment to do so that you wouldv'e though to create a business plan... or at least wouldv'e figured out a base range of pricing before jumping into the buying of equipment.

[Divine]

Yea? ive got a business plan, BUT as i keep stressing i dont kno what the average design price is. The reason why I dont want to charge per hour is because i always think that my clients are going be like WTF when they look at the price (if its high) and I'm kinda young so they'd probably be wary of paying me, no?

[Spunky Nerd]

Call some people in the area (printer designers etc) and ask what they charge... It sounds like you aren't wanting to do the leg work to figure out what you should be charging

[CkretAjint]

Sounds like your doubting your skills as a designer when you say that. That's the price you charge, keep them up to date on their hours for each project, give them a ballpark of average hours it'll take when you quote them. They can do the math and then there are no surprises.

No printing service? You're gonna print 1,000's of posters out at your house? :confused:

Sounds like your putting the cart before the horse here. You bought everything and are trying to start a business, without knowing what to charge. What if the going rate is only $5 an hour? You'll be paying off equipment for years!!!

[Divine]

Yea I kinda get you, Theres only a couple printing services near my area that I know of. But im not sure if they're designers, i think they're just do printing services.

I think you might know the company, KallKwik ?

[Virgo Nightingale]

GAG handbook.
http://www.amazon.com/Graphic-Artists-Guild-Handbook-Guidelines/dp/0932102131/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1203779794&sr=1-1
Adjust for you skill level and location.

I'm concerned that you do not understand the basic math of salary + overhead / hours = price
PD's answer here is about as short and sweet as it's gonna get. I'm not sure what else you think we can tell you. There is NO WAY for us to know what's an appropriate rate for you to charge. Buy some books, do some research, contact other designers in your region (I know, there's none in your area, so expand your search radius). We really can't do this for you.

And fwiw, I think laying out money for equipment before doing research as essential as what rate you'll charge really is backwards. You have to have any and all financial details in order before you open your checkbook – make sure you know how you'll make money and how much you stand to make before you decide to invest in anything like a new business.

[Drazan]

First thing you need to do is figure out your costs and overhead.

Costs are real items. Ink, paper, equipment, pens, pencils, software, computer, etc.

Other overhead are figurative items. Taxes, lights, lease/rent/mortgage, car, insurance, marketing, etc.

Once you have a list of what it costs for you to live (take home wage), the cost of materials, and the cost of other overhead then you'll have a number to work with.

Take that number and divide by the number of hours you will be working in that period. For example, all basic cost and overhead may be per month. Take that number and divide by the number of hours that you can realistically work.

When I say realistically work, I refer to the fact that no one can work a full 40 hours per week on billable hours. Unless they put in well over 40 hours of effort.

That end dollar amount is the per hour you must charge in order to survive. What you add on to that then is profit.

~~~~~~~~~~~~~~~
Once you have the price per hour, then you can multiply up by how long it takes you to do a project. Experience will produce better quotes. Then you can take that number and quote per project.

It's a formula that only you can crunch numbers on.

Don't be afraid to charge what you are worth. Even if you are in the mindset that you can't afford a service, doesn't mean that your clients are in the same mindset. And don't think of it as expensive think of it as value per dollar.

The printers you have may work for short runs, but when a customer wants 1,000 or 10,000 prints of something you will need to find a printer to handle it. Also the smaller printers are really not cost effective for printing quantities of things.

Jade

[CkretAjint]

I think you might know the company, KallKwik ?

The shoe shine company?

[Spunky Nerd]

The shoe shine company?

haha:p

[Divine]

Wikedd, thanks Drazen,

KallKwik the printing people thingy majicc