Low-ballers – Another fine look at the industry
I was fortunate enough to be sent an article by a friend today that talks about low-balling and the effects it has on the creative industry. It was interesting to see the mentality of these people and how a lot of it is done out of fear of getting a pay check, but how this is still the wrong thing to do. Thanks AIGA for posting another great article. Read the article and send it to a friend or a student.
~ Adam
December 30th, 2007 at 7:47 am
Good article; it’s important for everyone to remember the value of their creative work and the work of their peers.
I’m curious though… how does everyone know the market value of their design work? As far as I know, the last time that popular Pricing Guidelines book was updated was 2004… is something from four years ago still the standard?
When I started out, I guess I would have been called a “lowballer” when really I just had no idea what to charge… I didn’t know where to look, who to talk to, etc… I just charged what I thought it was worth. Now I charge quite a bit more (woo hoo!), but I’m still wondering if it’s the “right” amount.
So… anyone know the best way for a designer to actually KNOW what she/he should be charging?
January 2nd, 2008 at 10:01 am
That is a great question, and one that I know has plagued designers forever.
Personally I have done alot of networking and had many discussions with other designers, AE’s and other companies and we talked a bit about what is a good standard. Its not always easy to talk about this stuff with other people as they look at each other as competition.
I think if we use each other as our checks and balances it will be for the betterment of our industry.
January 2nd, 2008 at 10:28 am
I agree that collaboration and conversation help everyone involved, but I get the impression from lots of people in business (not just designers) that everything they think about is a “trade secret” which they refuse to share.
I thought a lot about this post over the last week, and talked to a bunch of business owners and designers about the issue, and found out that almost everyone has no idea if their pricing is “correct” or “standard”. The local coffee shop prices based on their cost of materials and their “friendly” ubiquitous competitor, but for designers I suppose this might be construed as undercutting?
Maybe the next few BADcasts could cover this? It seems like you guys might be in a good position to ask designers more about how they decide their pricing and their worth? I don’t care to know what they charge, but if this subject is worthwhile, I’d love to see you explore it.
January 8th, 2008 at 1:12 pm
Hey all, I recently found this little gem of a website. Ugh…
bootb
In-case my link doesn’t work: http://www.bootb.com/en/
January 25th, 2008 at 6:06 am
Great
January 29th, 2008 at 11:37 am
I have dealt with this very recently. A client with a decent amount of income based on estimates was requesting bids for redesigns of two sites. One their corporate and the other a property site(home building client).
We didn’t have much contact with the project manager to really delve into what they wanted/needed and in the end threw our bids out there for the sites.
We lost suffice to say.
Not that every company is healthy with profit and especially with home builders seeing “hard” times they might not be as apt to spend alot, but we were informed they had found qualified freelance help to complete the project. Most likely for half the fee.
This is a hard row for companies like my own to find the balance. Yes i have low overhead, but I probably should be working off of ideal overhead (for all of lifes expenses) vs. my self sacrificing mentality.
I think that many young designers and idiotic entrepreneurs can be to blame. Students that are educated enough properly from the beginning should be putting up a united front when people ask them (in their vulnerable post graduate state)to do work. Solidarity is needed. I never got proper education on what to charge before i left school and i think i did well enough for myself in figuring it out, but i pass this knowledge on when i meet students.
As for the entrepreneurs, unfortunately design is seen as art and art is not regulated. i don’t know if i’d love the idea of regulation of sorts in our profession, but we need some way to help our clients distinguish between Dr. Nick and Dr. Hibbert.