Pricing Design Work & Creativity - Stop Charging Hourly
Вставка
- Опубліковано 25 гру 2018
- Confused about how to price creative services? Are you charging hourly versus value-based pricing? Is there a better way to determine what is fair to you and fair to the client? Watch this video and see how much money you are potentially leaving on the table by not pricing the client. Price the client and not the job.
In this archive classic cutdown, listen to Chris Do as he shares one important principle in how to price design services.
Watch the original full uncut video here: • Pricing Design Work & ...
#pricing #design #services #logo #ValueBasedPricing
================================
🚀 Futur Accelerator
The step-by-step blueprint and coaching program designed to get your creative business off the ground:
thefutur.com/accelerator
🥇 Futur Pro
The professional creative community designed to grow your personal brand, your business, and your network:
thefutur.com/pro
✍️ Other Courses, Templates, and Tools:
thefutur.com/shop
🎙 The Futur Podcast:
thefutur.com/podcast
Recommended books, tools, music, resources, typefaces & more:
thefutur.com/recommendations
Music by Epidemic Sound:
share.epidemicsound.com/thefutur
Shorts Playlist:
www.youtube.com/@thefutur/shorts
We love getting your letters. Send them here:
The Futur c/o Chris Do
1702 Olympic Blvd.
Santa Monica, CA 90404
-
Host- Chris Do
Cinematography- Aaron Szekely, Mark Contreras, Ricky Lucas
Live Editor- Jona Garcia
Editor- Stewart Schuster, Mark Contreras, Aaron Szekely
Futur Theme Music - Adam Sanborne www.adamsanborne.com
Typefaces: Futura, Din, Helvetica Neue
Futur theme song- Adam Sanborne
===
*By making a purchase through any of our affiliate links, we receive a very small commission at no extra cost to you. This helps us on our mission to provide quality education to you. Thank you.
I literally just sent this to a client. :) I always do project-based billing. For all of the reasons Chris points out in this video. I just had a client ask me today (after providing them an estimate for a design project) "how long will it take you? If it takes you less will you charge me less?" I stuck to my guns and reiterated: "I am sorry, I do not do hourly billing, I do project-based billing." They asked again. I then sent a nice response and said that this video explains why in a more concise way than I ever could. They wrote back, signed my estimate, and now I am starting the project!
how did it go? what was the clients feedback after?
I'm curious alswell@@prashantkunder515
I’m from India and a graphic artist and my rule has always been simple:
1. Good Work
2. Fast Work
3. Cheap Work
The customer can have any TWO of the above, on the understanding that they will not get the remaining option.
Fast + Cheap = Not Good
Cheap + Good = Not Fast
Good + Fast = Not Cheap
The message in the video is - that you are WORTH it because you are doing GOOD work. Period.. Cheap and Fast are terms you should not use. (if youre good)
well-put, @randallk2556!
good point
I think everybody needs an extra cash every now and then. I'm on this position right now, but I'm working to choose my clients and projects on future
@@Meskarts You're missing the whole point of what he's saying. He is right.
Yeeeees, hourly is so weird, it's might be a good idea for repetitive tasks but not for design.
It wouldn't be a good idea for a repetitive task either and I say this because if I'm getting $17 dollars to do a task and after a couple months I'm 5x faster at it I'm now giving the employer 5x more work for the same hourly rate. So no hourly rate doesn't work in any job. Know your worth. The world has made up a modern day slave system that people's minds can not even wrap around.
@@ED-kv9pq I agree, wage slavery is not a meme but a real term. So what you are saying is not an exaggeration, paying just enough to buy food and housing is comparable to slavery.
@@EdLrandom Your a smart man brother. Gives me hope that not all people are blind and dumb. Thank you.
@@ED-kv9pq Eds together strong
@@ED-kv9pq there is salary but you dont want that because sure it helps you out when you get less hours but when you get more instead of overtime you still make the same so hourly is better in some jobs that may require you to work overtime if you work 5x faster ask for a raise a little bit above what you think you are worth and negotiate down if they wont give it its time to start looking for another job
This is the edited version of the video that pulled me in! Nice to re-visit it from time to time... and in a new cut! Nice! :)
Same here :)
SAME!!
Same!
Same here!!
Same !
This is like 3rd time I am watching this. Still golden. Chris gave me new perspective on how I run my business. He has amazing mentoring skills. I envy people who can work with him on daily basis.
There is nothing amazing about what he just said. More hours should be paid more but no one in the real world comes to you and gives you 3 months for a job that takes a week or 5 minutes. Clients research the market and compare offers and proposed deadlines.
This guy in the video makes money selling illogic under logic to naive people who understand nothing of how market and prices work.
Straight from the archives. Where it all started for me.
I wish I've found this channel earlier than last week. Any videos your fav?
I’ve been a plumber for over 13 years and when I clean drains sometimes the customers aren’t happy with how fast I got the job done compared to the price charged, despite the fact that I run a camera before and after and run the largest cutter through the drain and ensure that all blockages are removed and flow is restored. I feel like I’m those situations, I am being punished for my experience and expertise when it comes to how quickly I assess situations and know exactly what tools are needed for the job and how to use them efficiently and optimally. Fortunately I work for a really awesome husband and wife who have explained something very similar like this to customers and helped them understand.
Ah!The famous pricing video… never ceases to put a smile upon my face
Well that 2:30 video has helped me immensely on how to price a job. 4weeks of design and implementation will save a company hundreds of thousands of dollars.
It’s out of scope of initial work and it’s a complex issue. What’s it worth?
My hours or my experience? Hours it’s about 10k experience it has to be worth a minimum of 60k and even then I know it’s insanely cheap
This guy explains just exactly how I feel dealing with complicated customers! Beautiful!!!!!!!
"Time is the most important thing I have" well said! Very useful video! 👍
Yeah, especially these days that everything seems too fast and everything needs time, it is very important here too.
This is exactly how it's done. I worked on animated commercials and I was in charge of all the 3D process. The offer was basically "I need X in Y time and it needs to meet these expectations." After that the question was "Can you match the goal, the time and the quality target and if so, how much do you charge for the final delivery?" Done, no questions about payment per hour etc. Asking hourly rate has to be one of the most awkward and ridiculous things in the industry. People still do it by the way, the vast majority. Almost no artist I know tracks their hours correctly and that method encourages "messy" work and even lies by both the one requesting the services and the artist.
When you lock your keys in your car, you call the lockout guy, he shows up in 30 minutes, unlocks your car in 30 seconds, and hands you a bill anywhere between $50 and $250, especially if it's 3AM in the morning. It may seem frustrating and even absurd to pay this price for what seems like 30 seconds of labor. But we have to ask ourselves two questions here: One, were we really actually hoping he would struggle to take longer or were we wanting quick service so we can be on our way? Two, what would we truly have done if the problem were left solely to ourselves? Break a window?
One of the classics that completely changed my perspective in charging my work. Esp when a client comes in for a logo
Love this short version of the a Futur classic. This kind of content is pure gold to people looking to update the way they price their projects and working lives.
The Do-man at it again, dropping gems as always. Once again great content.
This type of meeting depends on what you bring to the table and what’s in your portfolio. Working fast and delivery amazing product worth a lot more to me. However, now it comes down to comparing all the designer I found that can also work fast and provide amazing work for less. Then the question become what makes you better than the other guy. This is where experience and portfolio comes into play.
That opener was just out of the world,and the questions that Chris asks 🙌🙌
So short yet so meaningful, i gotta watch it over and over again just to process one big thing that Mr. Chris said... Thanks TheFutur
I am currently attending college to finish out my degree in graphic design and just wanted to say that this video truly captivated me, I have watched the full video but brought this up in class as well. I recently had my first client for a website design and setup. I charged an hourly rate but after watching this video I truly see the value in charging a flat rate.
Thank you for extending your education beyond formal academics! World could use more practicing this good habit 👍
I revisit this video as much as possible. This video has helped to create clarity in my messaging when these sort of discussions arise with potential client-partners.
I love his mind, I 100% needed to hear him, I'm an older artist, I will use his teaches from now on, Thank you 🙏
One of the first videos that introduced me to Chris Do and the futur. Highly recommend checking out the full video
WOOOOOOW Throwback!!! Great stuff
THIS RIGHT HERE!!! - changed my life!
Chris Do, you are my spirit animal.
This is what we call old is gold! Not so old too though! But still ! GOLD FOR SURE 😍💪
such an underrated piece of advice
Okay I feel like this is one of the best pieces of advice you gave and i thank you for giving us this advice, but what if they say they can get it quicker and cheaper elsewhere then what you can do.
Spot on!!!
Bits of content! Thanks!
I have to memorise this...or get the "thinking" and "logic" clear in my mind, so it roles off my tongue, the next time this happens...lol
Great video, once again!!
I’ve only been pricing by the hour. And now I definitely need to figure out how to price by value.
This was a defining lesson for a lot of freelancers. I have a potential client who once, ask me to create a logo with "just letters" and FAST.
I hopped on a call and I told him what font and kerning to use. and Voila! Didn't even charge him and he never harassed me again
The killer! way too useful!
Bravo!!, Well Said!!
Hey! Happy Happy Christmas from Ireland!
☘️‼️💯🎼🌈🔥🇮🇳🇳🇴🇬🇧🇺🇸🇮🇪🇨🇦❤️☃️🎄🎅☮️💪🏽🤠👍🏽☮️🎅🎄☃️❤️🇨🇦🇮🇪🇺🇸🇬🇧🇳🇴🇮🇳🔥🌈🎼💯‼️☘️
Love this... id watch more..
A Futur classic. Now, is there a basic formula for determining the value of a project?
Yes. Next video I’ll show you.
@@thefutur great, would love to know as well
This is really underrated compared to when I see this video on other platforms (maybe because of reposts)
CHRIS YOU CHANGED MY HOLE LIFE! THANKS ALOT......😘
thanks a whole lot.
I want to see more contents like this please, amazing video. I want to see more about freelancing and the business of design. Eventhough you have. I want more.
More it is.
很不错的营销知识，学习了👍
You owe me for the value I create for you. Not how long it takes to complete the project.
CHRIS DO! G.O.A.T
Finally someone right on my street. Thank you! ♫
Great video keep it up I just found you on here!
Welcome to the futur.
I love this
Awesome
old but gold
Thank you.
I agree but it's not easy to convince this to many clients.
👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾😎💪🏽🙏🏽🤙🏽Like a BOSS!!!...You NOW have my ATTENTION.
superb!
Master do has spoken again
I really thoughtur gon put some dr Dre at the end. Always a classic, this one.
My father a AC technician, his clients ask him about his hourly rate, but my father never worked on that. He hated that thing, he charge according to the condition of job, since my father is senior and more experienced and his work is reliable, he charge more than the average market rates
this guy a genius
Like a boss!
This 🔥🔥
I was hourly paid in a factory environment, repairing things.
If I was paid by repair... I would have been on triple the wages of everyone else. I left un-booked jobs for the next shift all the time. (when the next shift was on nights.) So they could sleep during the night.
I once left a list of jobs to book that covered the morning shift as well... The other two counterparts complained that I should never leave that much un-booked time again. It meant that they had a shift where they had to avoid doing anything and look busy, which is harder than just doing something.
Your work shift always passes quicker when you have lots to do. When you have loads of time... Time passes slow. When you have no time.. its already gone.. ;)
Chris, question.
I’ve been captivated by the models you teach. However does this only apply to the design/creation, marketing and AD space? Could the value based pricing instead of hourly still be applied to something like a business that is a “school” or professional education. Like say a sports camp for kids, 1 on 1 coaching, professional firearms training with citizens, to law enforcement & military peers, security consulting for schools/businesses etc: really different modes than say creation, designing, marketing etc:
Any tips would be great!
Hey Chrish! from a client's perspective, When I can easily get hundreds of varieties of a logo from a logo contest website like 99designs by paying $300 to $500, Then why should I hire a freelancer to get 10 to 15 variations by paying $1k to $5k?
As I am a freelancer I have to face this question very often.
Hey Chris, what do you think about doing a design school, that degree really helps me charging how much i want for a logo or that's just a piece of paper?
It’s the Picasso parable. A person sees Picasso at a restaurant and proceeds to praise the artist. Then asks him to draw a sketch on a napkin and they would pay whatever he says it’s worth. He drew a quick gesture drawing of a bull in 1 minute. The person loved it. He said that will be $10,000. The person gasped and said why is it so expensive? it only took you 1 minute! Picasso replied wrong, that drawing took me 60 years plus 1 minute.
Hi folks. Totally new to graphic design. My question is why can't I quote a price in light of an educated guess of how long it might take to do, say, a logo. I will charge you more for edits, based on a diminished per hour charge, but there will be a cap. This would protect you from being screwed out of nonbillable hours working on the project, but motivate the client to get the logo just right through you, but also motivate the client to stop constantly revisioning of the project.
Saw this clip on the stories and went and quickly searched for it cause it relates a lot. Im a painter who r ecently started working for myself. I feel like im punished for my production, experience level when these comtractors want to pay by the hour not value of the job. Its like people feel happier when paying someone to take longer to do a task.
It's like having black boxes doing the work. You give them money (the same amount) and they output a logo (say equivalently satisfactory). Would you prefer a black box taking longer or taking shorter? Of course the fast one.
Agreed .. except for the example on "a couple of interns" .. because it's more relevant to the outcome that any experience or talent or creative thinking can produce .. just to be fair
Would you be able to apply this to a freelance developer as well?
I feel this idea applies to photography, and other creative fields easily.
of course! I think it's still buisness and takes times for both!
Yes 🙌
Facts
Look at ya'll going in deep in the backlog to make some of that micro content marketing ;3
have they done any video that tackles about "Can a Good Design Sell a Bad Product"?Im just curious if anyone has experienced this.
Wow I have a cleaning business and people seem to want to pay more by the hour. But they want less hours for the quality of the cleaning so I have to charge more for less hours sometimes. It’s weird. Or I charge them less by the hour and they tip me more? 🤔. Can someone tell me what’s best in my situation?
Love everything about this, except for one thing - "clearly understand what it is that you do"
Is this important for the logo? To clearly show the intention?
Looking at the apple logo, it really doesn't say much about computers.
Its a bite from the forbidden fruit- the sweetest fruit of all. ;)
Thats what happened when my colleague went on a maternity leave and i was also doing her work i worked super efficient and did both jobs in 9-5 but i was told by management that if it takes time then claim overtime otherwise it was conveyed that we are paying you for 8 hrs per day and work got done in 8 hrs so no extra pay
Um confused, then what do I have to say to my client? I just got onboarded to a new project and he keep asking me my rates so now what do I have to say to him?
To put it this way, as a business owner like himself. He wants to find the best deal like faster but has quality but also cheaper.
Time waits on no one. Use it wisely~
Curious how the impact of AI technologies such as Dalle-2 will have on professional graphic design.
I am wondering if this do apply at a larger scale.
When you have many employee ?
Even more so.
@@thefutur thx for the answer. Have you made a video about how to estimate, bill when you have several core of a project. Without hours rate ?
00:30 ... are we not in contact during those 4 months? I check up on people I'm working with.... just to see how they are going
I price for each work for each ig post or print or website layout.. price for h is not reasonable if you are pro.. i do beter something in 30min then someone will do 1 day with many updates..
There are two types of clients one who knows what they want from a style and design perspective and want to know how much it cost to achieve that. They require hourly rates. Clients who have no idea what they really want implemente a cost reduction strategy to limit their exposure understanding that they are unsure. Then there are other artists who just want to brag.
Wow
I tried getting a logo done last year I give the company my name my ideas what it represents and what its supposed to be.. they came back at me with a crappy logo that looked like they put together that day even tho they had been “working on it” for a week. I was upset with them and very disappointed felt like they did not even tried so I literally drew a logo my self told them the colors I wanted and then I was satisfied I felt like it was a waste of time and money the first time because I was paying them to get something together for me something unique and only I had and they delivered junk to me and I had to get my ideas going and brain storm what I wanted in my own because they couldn’t come up with an idea of a logo for my company oh and I also had to pay more because they had to make my idea happen on a PDF form and all other files.
where are the LAST WEEK IN DESIGN?? Where they at?
We’ve missed a few weeks.
you just had to put this in XD 2:35 trying to be a meme hahah
2:33
YEEEEEEEEEEEEEEEEES
When I take a step back and try to think from businessman's perspective... it must be that he expects to have to wait and have to wear his suits and go to meetings and discuss the progress of a logo and coordinate with a bunch of stakeholders and whatnot. Doing the whole businessman thing. When you take all those parts away due to you being so fast, they don't know what to do! Haha Almost like, subconsciously, that's truly what they think they're paying for. But in reality: High speed + High quality = High cost. It's the name of the game.
Can somebody tell me where is the long version of this video
I need it too please
Charging by the hour makes no sense at all.
Time
TIME IS MONEY for business owners. Why? because they have to execute their business idea/product first/faster than competitors.
I hope this help you understand why time is so valuable.
If I wanted to work by the hour, I could of just worked at a factory.
lol that thug life at the end :D
Yup and they only get use rights of one of the designs presented to them. They would also need to buy another one they may like alacarte.
I used Chris's formula and here is the client's reply, "You are so smart my friend. We don’t hire people of your caliber. Good luck" 😃 I lost a client
that explains their standard. you dont need them
Man-hours make sense for a known outcome derived from a repetative process such as in production lines etc. The same approach can't be applied to calculate the value for creative work where the outcome is not known in advance other than the objective. It is frustating to get this point across especially with Clients who are afraid to present the same reasoning to their superiors. They tend to push the value of work aside and insists on man-hours instead since this is easier to justify and would most likely have a "cheaper" outcome....