Pricing a project

SAT, 14 APR 2007

Pricing is always a very sensitive issue, pricing it too much you lose a deal, pricing it too low you make a lost. But what is the right price? And how should you charge, per project, hourly or per retainer basis? These are the hard questions that we all have to deal each day, be you the vendor or the customer.

Brian Fling from Blue Flavor, has written a great article about pricing your project; there are a couple of tips we all can learn from, and at the end he concludes that:

Honesty and transparency should always be the heart of all projects.

And I can’t agree more.

General. Entrepreneurship
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Tue, 17 Apr 07 08:39 am . Su Yu3n wrote:

Hey Herry! Nice article, thanks for sharing! It really describes the situation that design agencies are in. I guess its something very subjective that will keep changing as the company grows and its requirements change. And the situation is definitely harder and trickier for smaller firms as opposed to large agencies who can charge by the hour and not worry about business.

Tue, 17 Apr 07 08:36 am . Herryanto Siatono wrote:

Yeah pricing is it art which is hard to master, it’s great to have an article like this that elaborates what’s happening behind the scene.

Tue, 17 Apr 07 06:22 pm . Su Yu3n wrote:

In your opinion, for the same job with the same requirements, do you think its better to charge big clients higher(equal to market rate) and lower(less than market rate) for smaller clients who are just starting off? Or charge them the same fee?

Tue, 17 Apr 07 07:59 pm . Herryanto Siatono wrote:

For me, I would quote the same fee, because your rate is what’s been perceived of your worth.

But again, pricing is an art especially in the service industry, many times there is no one size fits all, depending on the situtation, depending on the size of the projects, and other factors, it forms the margin you can play with.

The bottom line I think is probably back to common sense.

Wed, 18 Apr 07 12:19 pm . Aen wrote:

You have a typo. It’s Brian Fling not Brian Ling. Brian Ling’s the author of designsojourn.com and a friend of mine haha!
Good article.

Wed, 18 Apr 07 12:01 pm . Herryanto Siatono wrote:

Oh ya…hehe…thanks Aen!

Fri, 20 Apr 07 01:24 pm . Casey Chiang wrote:

Herry, the classic book on this topic is:

http://www.amazon.com/o/ASIN/0131856774

Fri, 20 Apr 07 07:40 pm . Herryanto Siatono wrote:

Looks like a very good book, good reviews in Amazon. Thanks!

Wed, 6 Jun 07 12:29 am . Steven wrote:

What about a downpayment by the client for an initial milestone. After that milestone has been reached, a discussion about pricing for the rest of the project. This allows everyone involved to understand visually what X amount of dollars is worth.

Wed, 6 Jun 07 09:28 am . Herryanto Siatono wrote:

@Steven, that could be an option, but many times, clients would like to know the whole project cost before hand for budgetting purpose.

That arranagement I think is a good idea to trying out a new vendor.

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