Question about a proposal

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Permalink Reply by Joshua Thomas on September 30, 2008 at 4:13pm

We're a small company, as well, but we do a lot of load-sharing with other companies and agencies in order to find our clients the best fit. Because of this, we typically always keep creative direction and processes separate from production.

Splitting up the pricing between creative direction and layout/production really depends on how (exactly) you want to delineate the tasks. In other words, how are you going to define the two separate tasks? And will it be only two separate tasks?

Since every publication is completely different and will have different production needs you'll have to map out what you think the entire design and production cycle will look like. If you think there are certain areas which are too vague to calculate a realistic amount of time, then perhaps include miscellaneous variables for those items like:

"Creative consultation is based on an average of 20 hours per issue. Additional hours will be billed at X"

Also, when we look at how to split production from creative, we look at the job this way:

"What parts of this job could I simply write up instructions, hand-off to any non-creative technical person and expect the same results that our creative staff would produce?"

In the end, it may end up that your hour per page average may be 3 hours per page on features or other creative-intense pages but only 15-20 minutes per page on static department pages.

And I would definitely suggest offering a third "combo" pricing structure. Discounting a combo rate is always enticing to companies primarily concerned with the bottom-line ... but even if you don't want to discount rates on a combo pricing structure, simplified billing can often be enticing, as well.

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Permalink Reply by Julie Bateman on September 30, 2008 at 4:24pm

Thanks Joshua!

In the past, I had always broken estimates into a lot of detail - but lately clients seem to prefer less descriptive estimates. Do you break yours down or do you just keep the breakdown in your own notes to justify the final cost if asked?

I've mostly done corporate design in the past - and the first contract I got for editorial design was by accepting the publisher's budget so I've had a lot more questions than usual for this proposal.

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Permalink Reply by Joshua Thomas on September 30, 2008 at 4:35pm

We kinda' went down a similar path. Years ago, our invoices were (in my opinion) overly simplified. It was too hard for us to really gain any analytical information, track cost, etc. from them. But then we swung too far in the opposite direction. Our invoices became way too complicated and far too micro-itemized.

Nowadays, we still keep things itemized but they're very straight-to-the-point line items.

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Permalink Reply by Julie Bateman on September 30, 2008 at 4:37pm

Yeah.. that's pretty much what I do now. I have to say, I like it when the client just gives me their budget and asks if I can work within it though!

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Permalink Reply by Robert S.C. Kirschner on October 4, 2008 at 4:49pm

Julie,

Always keep the pricing separated for unique services. The third option for pricing for the whole package must always be presented with a bonus service not asked for in the RFP. Added value always wins at the end of the day.

Good luck...Robert

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Permalink Reply by Julie Bateman on October 6, 2008 at 9:04am

Thanks Robert. I sent the proposal in last week, so we'll see what happens!

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Permalink Reply by Kevin Convertito on November 4, 2008 at 1:20pm

The parts should be more expensive than the whole (like car dealers do)...For Creative Direction, bid per mag...page production per page is OK, but I'd do that by mag too. Yes, bid a third, discounted combo rate. Just like design you can show 'em their version, your version, and a combo of the two...with good direction from you, a less expensive production person is a definite option -- just don't undervalue your Creative Direction...the lower page production rate may really not be worth your time...maybe try something along the lines of: Direction only = $3k/mag; production only = $3k/mag; or both for $4500/mag, etc... Good luck!

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