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How to Price
Your Work
Brad Weaver
@sbradweaver
Hello.
Brad Weaver
Partner // Director of Design at Nine Labs
@sbradweaver
Obligatory Greetings.
Money is
Uncomfortable
PRICING
FOR PROFIT
“Money taps into our deepest
emotions and symbolizes what we
fear, hope for, and desire in life.”
-Mikelann Valterra
My Story
why I’m up here
Avoid
Emotional Pricing
Your gut is not a calculator.
Professional
(n). a person engaged in a specified activity as
one’s main paid occupation rather than a pastime.
Clients want to
talk about money
… they just don’t know how.
How much is a website?
or App, Logo, Photoshoot, Brochure, etc.
We can educate clients
to ask a better question…
How much do
you charge?
Profit & Stability
Get Control with
Solutions-Oriented Thinking
Step 1
Know What You Need
Stop flying blind.
Your Shop Rate
There is a formula
Yay!
There is a formula.
Yay!
(expenses + profit)
÷
hours
=
rate
(expenses + profit)
÷
hours
=
rate
Recurring Expenses
+
1/12 of Annual Expenses
+
30% for Taxes
(expenses + profit)
÷
hours
=
rate
Additional 20% of
Total Expenses
(expenses + profit)
÷
hours
=
rate
Number of Billable Hours
for Deliverables
per Month
(expenses + profit)
÷
hours
=
rate
(expenses + profit)
÷
hours
=
rate
($10,000 + $2,000)
÷
80 hours
=
$150 per hour
Your Shop Rate
But, Why?
Who, What, Where, When, How
It’s not that simple.
If it were, we wouldn’t be here.
This is not your billing rate!
If it were, we wouldn’t be here.
But, Why?
Who, What, Where, When, How
Value
Who, What, Where, When, How
PRICING
FOR PROFIT
“Clients pay you for solutions,
not the time it took you to get there.”
-Mike Monteiro
Market Rates
Who, What, Where, When, How
Quality
Good, Fast, or Cheap.
Pick Two.
Raising your Prices
You can do it!
Raising your
Prices
You can do it!
What do I do
with this thing?
7 Pricing
Models
Hourly Billing
Flat Project Pricing
Package Pricing
Value-Based Pricing
Time or Value-based Retainers
Performance Pricing
Equity Pricing
Hourly Billing
Hours out, dollars in.
Flat Project Pricing
Fixed Fees for fixed deliverables.
I Suck at Estimating
Like Peanut Butter & Jelly
Package Pricing
Publicly defined costs
for tangible services.
Value-Based Pricing
Getting paid for your brain,
not your hands.
I take less time to
get to a solution.
Getting it done right without watching the clock.
What your market
will bear
Your track record
and past experience
The perceived value
to the client
Value is in the
eye of the beholder
Comparison is key
How do you find out what
others are charging?
Time-based Retainers
Hours out, dollars in… but guaranteed.
Value-based Retainers
Now we’re cooking.
*Retainer Agreements
A critical caveat.
Performance-based Pricing
Risk for future reward.
Equity or Ownership
Risk for future reward.
Which is best
and when?
There’s no such thing as one size fits all.
Hourly Billing
Hours out, dollars in.
Strategy/Consulting
Design
Front-end dev (HTML, CSS, JS)
Template projects
One-off components
Flat/Value Pricing
Hourly Billing
Hours out, dollars in.
Complex dev
Team contributions
Repairs/maintenance
Small strategy, consulting, UX
Hourly
Hourly Billing
Hours out, dollars in.
Strategy, consulting, UX
Repetitive/Cyclical creative
Sites that require routine
maintenance
Content Strategy/Writing
Time-based Retainer
Hourly Billing
Hours out, dollars in.
IA/UX
Campaigns
Branding & Marketing
Content Strategy
Value-based Retainer
Core Practices
Putting the “fun” in fundamentals.
Avoid Emotional Pricing.
Your gut is not a calculator.
1
Track Your Time
2
Log Communications
3
Get a Contract & Deposit
Avoid Emotional Pricing.
Your gut is not a calculator.
4
Define Scope in Writing
Avoid Emotional Pricing.
Your gut is not a calculator.
5
Invoice on Time
Avoid Emotional Pricing.
Your gut is not a calculator.
6
Set Boundaries
Avoid Emotional Pricing.
Your gut is not a calculator.
7
Review Immediately
Avoid Emotional Pricing.
Your gut is not a calculator.
8
Manage Your Money
Resources & Tools
Get a bigger bookshelf (or iPad).
github.com/bradweaver/
pricingfortheweb
November
2015
@sbradweaver
Thanks!

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