Before you make an estimate or proposal make sure you understand exactly what the client wants. If you give an estimate to soon, before you know exactly what the job requires, you’ll find yourself in trouble – either you’ll take a loose because you didn’t charge what the job is first, you’ll run out money before the project is complete or you’ll have to tell the client the estimate was incorrect and the job will cost more money. This will hurt your reputation for being honest and reliable. To combat all this, spend a few hours with the client and find out exactly what they want.
When pricing a job there are four things to consider.
- Scope of the job
- Services to be rendered
- Staff requirement, including their time and cost
- Your schedule.
A design business must have the right work to build a reputation for quality. The first priority is the client. Staff, contractors, vendors and everything else is secondary. If this fails then the business will not be successful and profitable.
Carefully defining and assign a project is the best way to determine the appropriate pricing method to use. A project can take anywhere from a week to a few months. If you price it correctly, manage your time and have the right people on the job you will have a very successful business.
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