On Oct 27, 2011, at 7:03 PM, Igor Roshchin wrote:
>
>
> Wed Oct 26 19:52:19 EDT 2011
> Cotty wrote:
>
>> On 26/10/11, frank theriault, discombobulated, unleashed:
>
>>> Thanks in advance for your input!!
>
> <..>
>
>> When I started out, I pitched myself where I thought companies could
>> afford - which didn't seem too cheap, nor too expensive. I was wrong.
>> The companies I do videos for *need* to feel they are getting the best
>> they can afford - when I put my prices up, the work increased.
>>
>> If your fee is too low, you'll have the penny-pinchers interested. Put
>> your fee up to what you might think is a bit too much, and you'll have
>> clients with fat wallets interested.
>
> Cotty's opinion is similar to what this guy expresses:
> http://www.danheller.com/biz-prints.html#5
>
>
> And Paul's up-front fee that goes toward the photos is a great model
> for what you described.
>
>
> Igor
>
>From a seminar many years ago, a pitch to full-time professionals who were
>thinking of full-time or part-time consulting work:
a. Figure what annual salary you are comfortable with.
b. Divide by 2080 to get an hourly rate.
c. Multiply by 2 to take account of factors such as business taxes, insurance,
etc.; idle time, sick time, vacation time.
(i.e., assume overhead costs of 100%)
d. Adjust slightly to take account of factors such as higher or lower overhead
costs in your given profession, lower rates charged by the bulk of your
competitors, etc.
e. If you are not going to bill for expenses directly, then figure typical
overhead for typical jobs, divide by the number of hours on a typical job, and
add that to your hourly rate.
So, to simplify the math, say you are shooting for an annual income of
$104,000. That would be an rate in the neighborhood of $100/hr. including
overhead but not including expenses.
The above all assumes that you value your time and have alternative pursuits
(e.g., harassing cormorants and ducks on the waterfront) to occupy you when you
are not gainfully employed. This model has you charging for your time and any
product sold (8x10 prints) is just a supplemental income stream which will
allow you to travel first-class to GFM. If you don't value your time, then
just charge for the product produced; figure your expenses, and charge enough
markup to cover those. This 2nd approach isn't so much a business/professional
model as a hobbyist model.
To mesh this with Paul's approach to billing, I would charge your $100/hr (or
whatever) upfront based on anticipated time involvement, but that includes at
least xyz images from which the client will receive x prints of a given size.
stan
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