How to charge Design fees Fees Writing Letters

How to charge Design fees Fees Writing Letters Estimating Fee Invoicing Ajay Vaibhav Home Letter

What is Fees • Selling your – Talents – Training – Experience • In the form of time in – Thinking – Meeting – Drawing – Traveling – Research Home Letter

Design Fees • No design fees ever be quoted until after briefing meeting and then always in writing. Golden rule • Never quote fees off the cuff however hard you may be pressed to do so. Home Letter

Writing Letters about Fees • Side of contract • Imp. If work is abandoned before it finishes • Virtually a Legal document • Well constructed, Impressive to demonstrate • Clear • Logical • Problem understanding Home Letter

Writing Letters about Fees • • • Introduction Summary of the brief Services provided Fees Special Clauses Additional fees Home Letter

Services provided • Stage One » Discussion with Specialists » Agreed number of visits » Primary design proposals • Stage two » Developments work; checking prototypes and samples • Stage three » Finished working drawing » Adaptation for size and range » Advising during production & first batch Home Letter

Fees • Stage One Rs. • Stage four Rs. • Stage three Rs. • … • Fee installment • Expenses chargeable • … Home Letter

Special Clauses • • • Ownership and conveyance of copyright Breaking clauses and fee payable for abandoned work Permitted modifications Free specimen and design credits … Home Letter

Additional fees • • For extra visits For changes to brief For Traveling time … Home Letter

Estimating Fee • The Secret of all successful estimation is to know the selling cost of an hour of your own time. • Chances of greatly underestimating your work on a job • Try to counteract right from start by adding 25%, 50%, 75% or even 100% in job hours Home Letter

Estimating Fee – (e. g. Typography assignment) • • • E. g. Your rate is rs. 100 per hour Drawing board : 4 hrs. Add Half of it: 4+2= 6 Wrapping and mounting +0. 5: 6. 05 Telephoning, letter writing (taking appointments) +0. 75: 6. 8 Get to your client’s office +0. 25: 7. 05 Meeting with client +0. 5: 7. 55 Back + 0. 25: 7. 8. . Say 8. 0 8 * 100 = 800 is the fee to be charged. Home Letter

Charging fees • • • Lump sum or fixed Hourly- rate Percentage Royalties Consulting and retaining fees Home Letter

Lump sum or fixed • Clear brief • Preparing and submitting preliminary Design Proposals » Product » Graphic » Engineering » Furniture » Textile » Fashion Home Letter

Hourly- rate • Design is a completely unknown quantity • After First stage • Easily Can be called a halt » » » Checking prototypes House style or corporate identity program Range and color Supervising production … Home Letter

Percentage • Are usually on a sliding scale - as production costs increase, the percentage fees come down » » Interior design Exhibitions Shop fittings Home Letter

Royalties • Things to be sold to general public • Large quantities » » Furniture Fashion Textile Domestic equipments. Home Letter

Consulting and retaining fees • Fairly well – established designer • Growing reputation » Consultancy services only » Separate fee for Design, Drawing board work … • Mutual agreement for one or more years • Retain exclusive service for particular design • Not to work for any other client, until termination Home Letter

Invoicing • Professional people always “render” their invoice……. . • When to invoice – Is your design approved and had final clearance at the stage » Every month, when? » Can you afford to wait ? Home Letter

Invoicing • Work cost is • Total Fees@15% 1, 000 15000 • For stage one 1/5 of the fees Rs. 3000 • For stage Two 1/3 of the fees Rs. 5000 Total 8000 • For stage three • For stage Four 1/3 of the fees Balance Rs. 5000 Total 13, 000 Rs. 2000 (final balance) Home Letter

Thank you Home Letter