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How to charge

Design fees AjayVaibhav

Writing Letters

Estimating Fee

Invoicing

Fees

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What is Fees• Selling your

– Talents– Training– Experience

• In the form of time in– Thinking– Meeting– Drawing

– Traveling– Research

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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.

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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

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Writing Letters about Fees

• Introduction• Summary of the brief• Services provided• Fees• Special Clauses• Additional fees

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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

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Fees• Stage One Rs.

• Stage four Rs.

• Stage three Rs.

• …

• Fee installment• Expenses chargeable• …

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

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

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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

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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.

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

Charging fees

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Lump sum or fixed• Clear brief• Preparing and submitting preliminary Design Proposals

» Product» Graphic» Engineering» Furniture» Textile» Fashion

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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» …

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Percentage• Are usually on a sliding scale

- as production costs increase, the percentage fees come down

» Interior design» Exhibitions» Shops» Shop fittings

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Royalties• Things to be sold to general public• Large quantities

» Furniture» Fashion» Textile» Domestic equipments.

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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

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Invoicing

• When to invoice– Is your design approved and had final clearance at

the stage» Every month, when?» Can you afford to wait ?

• Professional people always “render” their invoice……..

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• 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 1/3 of the fees Rs.5000 Total 13,000

• For stage Four Balance Rs.2000 (final balance)

Invoicing•Work cost is 1,00,000•Total Fees@15% 15000

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Thank you