Calculate Your Flat Fee or Project Estimate
The basic formula for figuring out how much a specific project will cost is Hourly Rate x Labor = Flat Fee and then taken a step further (Hourly Rate x Labor) + Other Expenses = Project Estimate.
- Hourly Rate. This is the rate you have determined that your time is worth. See "Calculate Your Hourly Rate" for how to come up with this figure.
- Labor. In order to set a flat fee or quote a project price you'll need to know how long it will take to complete the job. This is time spent doing research, conceptualization, choosing fonts, creating layouts, printing out proofs, making client-directed changes, meeting with the client, talking to the printer - in other words, all the time required to take the project from beginning to end. If you have no past experience on which to base this you may have to sit down and time yourself doing different kinds of tasks (scanning, image editing, printing out proofs) and entire projects (laying out a brochure, a newsletter, an ad). You can also consult with other designers to find out how long it should take to do certain tasks. Estimating time is a process that may become easier as you gain experience with working on various projects.
Multiple your Hourly Rate x Labor to reach a basic flat fee for brochure design or creating an ad or whatever the project you are pricing. At this point you may need to do additional research to find out if this comes out to a reasonable fee for your client and if it is in keeping with market conditions. If not, you may either have to find clients who can afford you or figure out if your hourly rate is too high or your time estimates are way off.
- Expenses. If you will handle the printing for the job (whether that is desktop printing or working with a commercial printer) it is typical to add an extra 10-20% onto what the printing will actually cost. This is your fee for any additional time involved in dealing with the printer.
There may be some one-time expenses associated with a particular job. For instance, the client may require a specific typeface that you'll have to purchase. You may choose to pass that cost along to the client. The cost of paper, envelopes, or other supplies specific to that project would be included.
Although it may not be included in the quote you give for a project, responsibility for additional charges not included in the project estimate should be specified in the contract. These might be unexpected rush delivery fees, excessive revisions, or additional client meetings not previously budgeted for.
- Project Estimate. (1 x 2) + 3 = 4 This is your estimate of what a specific job will cost the client. It includes your labor costs, the cost of printing and supplies, and other incidental expenses. This project estimate would become a part of your contract for that job.
Your Assignment: Use this lesson and the resources in the sidebar calculate a flat fee for some of the typical projects you expect to be doing in your desktop publishing business. Use the sidebar resources for additional, detailed advice on setting rates and determining if your hourly rates and project pricing is in keeping with what other freelance designers are charging.
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