Week 2: Talis Resource Lists- My Business model
Following AIGA (The Professional Association for Design) for best practices in Graphic Design

I’ve always thought coming up with a pricing structure was a bit like sticking your finger up in the air and seeing which way the wind is blowing, but according to AIGA there is a process of setting fees and there are three fundamental conditions to consider - 1. Overheads (keep them low to stay in business) 2. Estimation (make sure you cover yourself with a clear and concise proposal and outline possible additional costs) 3. Market conditions (make sure you cover yourself for the project worth - where is it going to be used?).

It's essential to understand the project's brief and the client's specific requirements thoroughly, and this can vary massively depending on the client’s requirements and where the project is going to be used. This includes determining the complexity of the design, the intended usage, and the timeline for completion. AIGA recommends considering factors like the designer's experience and skill level, market demand, and the project's potential impact on the client's business.

Transparency is crucial, so it's best to present my clients with detailed proposals that outline the services provided, the estimated number of hours required, and the overall cost. Additionally, AIGA advises incorporating a contingency fund for any unforeseen changes or additional work so I need to make sure I cover these in detailed estimating. Regularly reviewing and updating pricing structures to reflect industry standards and economic fluctuations is also recommended, ensuring fair compensation for designers while maintaining competitive rates in the market.

Here are some best practices to also consider in my process of setting fees:

Materials - Have I got the facilities and supplies to oversee the project? Will I need to purchase anything else to complete the job and if I do have I covered myself in the estimate that these will be included or will be additional? Items may include stock images, fonts etc

Additional Services - Anything additional needs to be documented. Does the project require image retouching as the photography of a required standard, has copy been supplied in the correct format or may need to be rewritten, or maybe the photography supplied is not in the correct format and additional images need to be supplied (image searching can take hours). All of these need to be outlined and charged accordingly.

Estimating - The difference between profit and loss. Make sure you cover the complexity and all aspects of the project so you don’t need to go back to the client for unforeseen circumstances. If the project is large and complex, consider building in a contingency allowance so this doesn’t eat into your profit.

Revisions - Aways allow for a certain set of revisions (I always allow for x2 sets) and after that state that additional charges will apply at £xx rate. I always find this helps the client to focus rather than glimpse over what you have produced. It’s also best to categorise what is a revision and what is a design layout change.

Market conditions - This is not just based on the time it takes to produce and create the deliverables requested, but on whom it is going to be used by. For instance, an annual report for a Fortune 500 corporation is going to have a greater inherent worth than an in-house newsletter for a local business.

Usage rights - Is it likely that this work will be used again in future? If so will you be paid for it? Most of the work that designers produce have a limited shelf life but this should be considered for future use and future income.

Negotiations - It’s always good to ask the client if they have a budget set aside for the project. If so you can gauge their expectations. Its incredibly important to understand the goal of production negotiations. And a key point to remember is that you are not going to be a good fit for everyone and don’t commit to a project that will take all your time for o or little reward.