How to charge

Design fees Fees

Writing Letters

Estimating Fee

Invoicing

Ajay
Vaibhav
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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 clients 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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 Charging fees
Lump sum or fixed
Hourly- rate
Percentage
Royalties
Consulting and retaining 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
Professional people always render their invoice..

When to invoice
Is your design approved and had final clearance at the
stage
Every month, when?
Can you afford to wait ?

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

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)

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Thank you

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