Blogging And All That Malarkey

Worth

Yesterday I took a call (and received an email) from a long-standing client. I designed for them in 2001/2. Over the last year, the staff responsible for updating their site had changed, they had mislaid their passwords and they needed help. So help was what they got.

Helping this client took less than two minutes out of my day. Will they receive an invoice for a minimum time-block? Hell yes. Fifty squids in fact. Will they be happy to pay that. I hope so, because the cost to them in time, stress and other factors of us not being on hand to help could have been far more.

One of the reasons why, I think, we're still here is profitability. We charge top rates, not because we have a high opinion of ourselves (actually that too), but because we want to make sure that we'll be in business in one, three, five, ten years time. Being here matters to me, I love my work, but it also matters to the people we work with who need to count on our support in years to come.

So what is the moral of this story?

If you're a designer running your own business like I do, don't devalue yourself and your work by cutting your prices, especially in these difficult times. Your value is in more than just the hours, days or weeks that you spend working on your current job, or the next. Your value to your clients is that you'll be there for them, to help them when they need it, in the future.

To make sure that happens you must make money. When a potential client asks if you'll work for a lower rate, explain to them that it's in their interests that your business is happy and healthy and that what they might save now will likely cost them dearly in the future if you're not around.

Here endeth the entry.

Leave your comment

Lewis Litanzios

May 8 2009 @ 08:58pm #

Personally, I raised my hourly quite considerably recently. Best thing I’ve done in a while, and it hasn’t disrupted my work throughput at all:

- Clients, and studios, take you more seriously;
- You take YOURSELF more seriously.

Remember that all work and no play makes experimentation and education difficult to say the least (looking more on the skills side of sustainable business management there)

L

PS. Loving posting on your wonderful new blog Andy :]

Sean Johnson

May 8 2009 @ 09:02pm #

wise words

JJ

May 8 2009 @ 09:10pm #

You’ve said something that needed said.

Many people in the creative industries are too quick to do a small favour. Small favours tend to beget bigger favours and before you know it you are paying for your clients marketing/advertising out of your own pocket.

Gary Maddock-Greene

May 8 2009 @ 09:12pm #

Dammit Andy you’re right :o)

Ryan Roberts

May 8 2009 @ 09:29pm #

Couldn’t agree more, I’ll be putting my rate up soon as it’s become evident I’m not charging enough (a client telling me I’m not charging enough was probably the biggest hint, haha). I personally think the web design industry seriously undervalues itself, especially freelancers.

Phill

May 8 2009 @ 09:34pm #

This is something that’s been on my mind for a long time now and I’ve often not billed for something that I feel is trivial (like resetting passwords and setting up mailboxes) but now I can see it’s been undermining my whole business. From now on *everything* gets billed out.

Thanks Malarkey ;-)

The Wise Owl

May 8 2009 @ 09:56pm #

Here here captain Malarkey

simon r jones

May 8 2009 @ 10:39pm #

I agree lowering prices does devalue what you offer. I wouldn’t normally charge a client if I was in the middle on an ongoing project, though.

We put a quote together once for a client, who after they moaned a bit we went back with a cheaper price (for the same work). Didn’t help us in the end, the client decided not to go ahead and admitted they questioned the value of our work if we were prepared to simply reduce the price. Never again. We stick to quotes now and only reduce prices if the deliverables are reduced too.

Seems the sensible way to do business..

Vladimir Carrer

May 8 2009 @ 10:57pm #

I absolutely agree! Every time I agreed to do small favour for free I regretted many times.

Josh

May 8 2009 @ 11:24pm #

Ah, Objectivism in action!

I could not agree more. Nothing bothers me more than somebody who has a great “idea” and expects me to make a website for very little or free. These people think the “idea” is worth more than the actual work that makes it a reality. Because I am a designer and can “do this techy stuff”, the idea people think that I am bound to a social obligation to help them.

The sad thing is that, in the beginning of my career, I fell for this ploy and I continue to see developers and designers fall into this trap. They do this because they believe that it will pay off later. The truth is that, unless you have no portfolio at all, doing this devalues yourself and sets you on this path for the future.

We designers and developers are offering a skilled, value-added service. If a lawyer can charge for a block of time for just a couple of minutes work, so can we.

Erik Wallace

May 9 2009 @ 12:25am #

A timely article. I’ve recently been considering dropping my hourly rate because of the poor economy, but I hadn’t taken into account the value you mention. Excellent advice, thank you.

EKM

May 9 2009 @ 01:14am #

My understanding is that lawyers tend to keep a notepad right next to their phone, and charge in 6 minute increments (1/10th of an hour).

10 short phone calls (easily a week’s worth) is suddenly an hour of work. At my rate, that’s almost half my mortgage payment per month.

It adds up.

Mikey McCorry

May 9 2009 @ 01:17am #

I haven’t, nor do I have any intention of dropping my hourly rate, however I always feel bad about charging clients for a minimum time block for 5 minutes work, and they always appreciate that I’m willing to do these teeny-tiny things for them at “no charge” once in a while.

However, of course, you are are correct. As my client list builds, so does the time I spend on these teeny-tiny things, and I’m sure most of my clients will be happy to pay for the fact that I’m available to fix these things at a moment’s turnaround.

I still don’t feel right charging the “fifty squids” for a couple of minutes, but from now on I will be more aware when a client might be trying to benefit from my generosity.

Lewis Litanzios

May 9 2009 @ 01:32am #

@Mikey McCorry raises a point.

For me working linearly on one thing at a time is important (similarly to working with DESIGN APP > XHTML/PHP > CSS > Javascript)

Being able to drop things at the ‘drop of a hat’ and flit about with another client for five minutes here and five minutes there is distracting, and can be annoying when you’re working under pressure already.

I think if you give clients the impression you are willing to drop other things to work on their ‘five minute’ task, then it conveys the wrong message is so many ways.

It’s also best for me, personally, to work on a planned list of things for [them]. Incidentally I can charge for this and not feel bad about it.

There’s obviously pro’s and cons to this argument (and by no means have I sussed it yet), but doing these types of small jobs does fall into the ‘just being an approachable freelancer’ category, which is important for anyone starting out - needless to say, something Andy will never have to worry about again.

L

Andy Clarke

May 9 2009 @ 01:55am #

Lewis Litanzios: doing these types of small jobs does fall into the ‘just being an approachable freelancer’ category, which is important for anyone starting out - needless to say, something Andy will never have to worry about again. — Oh no, trust me. No matter what perception people might have, I mostly/often do small jobs.

The Wise Owl: Sarah, how many times do I have to tell you? It’s admiral, not captain.

Sara

May 9 2009 @ 02:27am #

On this topic, what is a reasonable fee structure for site design & maintenance. Do you charge hourly or a flat fee based on complexity of the project? I live in LA and prices here I assume would be higher than, let’s say, the midwest.

If anyone is willing to share their rates, that would be appreciated. Or other info pointing to such information.

Thanks.

Lewis Litanzios

May 9 2009 @ 02:31am #

@Andy Yea, small jobs in other warm, gorgeous, far-flung countries :P

Good post mate.

Erik Wallace

May 9 2009 @ 02:46am #

Along the lines of Sara’s question… some of my clients have inquired about sites built with CMS so they can make updates themselves. This is wonderful for them, but for us web professionals it really diminishes future work and fees for updates. If anyone has built CMS sites for clients, have you charged extra (knowing you won’t be able to bill for updates) or just let it be?

Andy Clarke

May 9 2009 @ 03:25am #

Erik Wallace: If anyone has built CMS sites for clients, have you charged extra (knowing you won’t be able to bill for updates) or just let it be? — As Owen will testify, often we build a site and afterwards spend time fixing it when clients break the templates. I have one client who I regularly fix his markup. He calls it Having the web fairies visit.

Sara: I don’t charge for maintenance on a regular basis. Instead, like a plumber, I charge a call-out fee, then look at the job, take a loud, deep intake of breath and say This is not going to be cheap love! ;)

Chris James

May 10 2009 @ 11:35pm #

Re: The approachable/financially viable balance.

The problem for me is something to do with the emotional attachment we’re bound to have with our work.

When I have worked as part of larger agencies, someone else does the billing. They just look at the time and bill it - they’re removed from the job and don’t have the emotional attachment.

As a freelancer we have to wear all the hats. The discipline of billing requires dropping the emotion. This can be harder than swapping between logo design to web page design to corporate branding to illustration…

- Doesn’t make us bad people though. Just not as rich as we could be.

Leven

May 11 2009 @ 01:13am #

bullocks, I’ve helped many client for free even when it cost me more time than 2 minutes. I’m still here after 10 years. 50 bucks won’t let you go bankrupt and you ar not degrading yourself when you don’t send an invoice for such little work.

Actually, what you do do is higher the change that your client will go somewhere else for there next real project.

My 2 cents..

Lewis Litanzios

May 11 2009 @ 01:31am #

@Leven You could sure bribe a spelling b judge with that extra $50 though ;]

Erik Wallace

May 11 2009 @ 11:57am #

Leven, I also have some clients I’ll consider doing little bits of work for sans charge. Typically friends of friends or excellent clients that I’ve had a long time. I see reasons for both sides of the argument. In special circumstances it’s worth doing something for no charge so long as it’s appreciated and you know it will be cementing a better relationship with the client. I do see Admiral Clarke’s point of view, it’s important to keep money coming in… your time as a freelancer isn’t free and some clients after getting a break once may expect it in the future. It could become a slippery slope.

Lewis Litanzios

May 11 2009 @ 07:27pm #

Trust me. It’s ALWAYS a slippery slope.

[They] tell their friends and so the circle starts, and before long your justifying your hourly to umpteen people on the phone on Monday morning - THAT’s more of a ball ache than actually having the heart to invoice in the first place.

Wholly with the admiral (can’t believe this one is taking off, but happy for you Andy) on this one*

Photography

May 13 2009 @ 08:50pm #

Exactly nice conversation friends.

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Worth

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The Wise Owl

Josh

Andy Clarke

Sara

Andy Clarke

Chris James

Leven

Hardboiled Web Design by Andy Clarke