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Opinion 4 - Hourly vs Flat Rates

Hourly Versus Flat Rates

A common decision to be made when starting a graphic design project is whether to charge a flat or an hourly rate. Each method  has pros and cons, as well as ways to work towards a fair deal for both you and your client.
       
 

Hourly Rates

In general, charging an hourly rate is best for work that is considered "updates," such as changes to a website after launch or revisions on an existing print design for additional uses. It may also be the right choice for small projects, especially if it is difficult to estimate the number of hours of work necessary to complete the project.

Pros
- You the designer know you will be paid for actual hours worked.
- The client knows they won't pay more for a guaranteed flat rate.

Cons
- You are not guaranteed a minimum payment for the project
- The client doesn't know exactly what the project will cost them.
- The rate is based on hours, rather than what you may consider the value to be
  to the client. For example, a logo design may take 15 hours, but its value to the
  company could be much higher.

Flat Rates

It is common to charge a flat rate for large design projects and for repeating projects for which the designer can accurately estimate the hours. In some cases, flat rates should be based on an estimate of the amount of hours a project will take to complete, times your hourly rate. In other cases, the value of the project may be higher than just your estimated hours. For example, logo designs are often valued high regardless of actual hours worked, because of their frequent use and visibility. Other factors that can affect price include the number of pieces printed, sold, or one time vs multiple use. Depending on the type of project, a percentage can often by added to cover client meetings, unforseen changes, email correspondence and other activities that may not be taken into account in your estimate of hours. How much to charge and how to discuss it with the client is up to the designer.

Pros
- The client knows what they are paying from the beginning, unless there are
  changes to the scope of the project.
- The designer is guaranteed an amount, even if the job is finished quickly.

Cons
- As the designer, you are taking a risk that the job will not take longer than
  expected. However this situation should be covered in your contract.

A combination of Hourly and Flat Rates

Usually the best solution is to use a combination of these methods. If you do choose to charge by the hour, the client should be given an estimate of the amount of hours the job will take, at least in a range. For example, you could tell your client, "I charge $X per hour, and I estimate that the job will take 5-7 hours." As you work on the project, if you see the estimate is off, you should discuss this with the client before proceeding and tell them why your estimate is changing. The last thing you want to do is slap the client with a surprising bill at the last minute and have to explain yourself then. Often the estimate will have to change because the project took an unexpected turn or the client asked for many changes. Discuss this with your clients as early as possible. If you cannot provide a small range at the start, provide a wider range, such as 5 - 10 hours and explain why.

If you choose to charge a flat rate for a project, this doesn't mean you are working for your client for an unlimited number of hours until the project is complete. While there may be a little more flexibility when working by the hour, your contract should lay our the scope and terms of the project. To avoid an endless project, you can:

- Include a detailed outline of the project so you can adjust your rate if the outline
  changes. For example, if a 2 sided, text heavy brochure turns into a 4 panel folded
  piece with custom illustrations, the price should change.
- Clearly spell out how many rounds of changes or edits are included in your flat
  rate.

When quoting a flat rate, it is still important to include the hourly rate that you will charge if extra work is needed that is beyond the scope of the agreement.
In the end, experience will help you decide how to charge for your projects. Once you have completed a number of jobs, you will be able to more accurately provide flat rates, control your projects through your contracts and communicate with your clients about budget issues.

Article Source: http://graphicdesign.about.com/od/career/a/hourly_flat.htm
 
     
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Opinion 5 - Website Design Pricing

Web site Designing costs can be broken down to depending on the type of site, wherein sites are classified as low end, mid range and high end sites. A low site offers a 2-4 pages of content and uses existing graphical themes or sock graphics are purchased. The designing package does not provide any animation page or any database
       
  interaction feature. The standard rates of such low end sites range approximately from $500 - $2000. On the other hand a mid range website costs approximately $2000 - $5000. The website includes 5-7 pages of content out of which some is developed. In addition, the designer provides 2-4 original graphics and a standard layout with some customization. Animation includes JavaScript mouse over changes but data interactions are not provided. A high end website involves a high cost and the standards rage from $5000 - $10,000. A designer provides 12 or more pages of content, or even contents that are pragmatically / dynamically generated. The design has a unique layout and extensive graphics with navigation schemes. The animation is often done in JavaScript, Animated GIFs. Dynamic HTML and Flash. In addition, designers also provide with SQL or Flat File database interaction.

Article Source: http://ezinearticles.com/?expert=Marcus_Peterson
 
     
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Summary - Average Graphic Design Prices and Rates


Graphic Design Rates

Low End - $40 - $80 per hour
Mid Range - $80 - $160 per hour
High End - $160 - $250 per hour

Graphic Design Flat Fees per Application

Low End Logo Design - $150 - $450
Mid Range Logo Design - $500 - $2000
High End Logo Design - $2000 - $5000

Business Stationery - $150 - $250

Low End Brochure - $30 - $450
High End Brochure - $300 - $600

Web Design Prices

Low End Site (2-4 pages) - $500 - $2000
Mid Range Site (5-7 pages) - $2000 - $5000
High End Site (12 or more pages) - $5000 - $10,000
 
     
     
       
  Edited by Elly Klamo
Articles from various sources
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Graphic Design Articles

          The Graphic Design Process for
          a Logo Design - Sydney Services
           Graphic Design Prices and
           Rates Guide - Sydney
 
     
   
 

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           The History of Graphic Design  
           What is a Design Application?
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