Become a smarter marketer.

Join Over 567,000 Marketing Professionals

Become a PRO member

Know-How Exchange

Topic: Other

Search more Know-How Exchange Q&A from Marketing Experts

This question has been answered, and points have been awarded.

How To Calculating Production Cost?

Posted by emac_t on 250 Points
Dear all,

I'm a Creative graphic designer, running my own design house for the last 4 years. It has been a one man show most of the time. I hire photographers and copy writers for certain projects.

Recently I talked to a marketing personal where he will bring in clients and provide some branding ideas to sell the creatives which i produce. He suggested to share profit as 65% for me and 35% for marketing. that is after reducing copywriter/photographer/traveling costs. But I do have other costs involved like Computer time (wear and tear/software upgrading etc, Electricity, phone calls and internet and rent. Since I'm already doing my own clients work and slot in what ever jobs that this marketer brings it difficult to calculate that expense. But I want to put a price for it. how can this be done?

I will be happy to answer any further questions.

Thank you.

for things that we outsource like printing we share 50-50. which is apart from design services.


  • Posted by Jay Hamilton-Roth on Accepted
    The costs you're quoting are part of what your fee already covers. Don't get too focused on nickel-and-diming the relationship. Focus on the quality of the customer, the partnership value, and long-term benefits.
  • Posted by Peter (henna gaijin) on Accepted
    I am with Jay. Just focus on the easily trackable variable costs that go directly with that customer. Basically, the money you spend directly related to that customer, but not the money you spend to keep the business running.

    The overhead costs (rent, utilities, etc.) should be part of your 65%. Only exception is if there are long distance calls/fax for that client, those can be billed (though if it is just a few bucks, I probably wouldn't). Keep it simple, and don't make your partner think you are nickel and diming.
  • Posted by emac_t on Author
    Thanks for the response, I certainly don't want to be nickel and diming. will it be ok to charge atleast 6% for the production cost from the total bill which we produce to the client.

Post a Comment

What's New

  • What Marketing Can Learn From Sales: An Introduction to Account-Based Marketing
    Register today and join us for this eye-opening look into the prospecting process and how account-based marketing can change your sales funnel: What Marketing Can Learn From Sales: An Introduction to the Account-Based Marketing Approach, on Thursday, May 21, 1pm ET.
  • Take 10: A Step-by-Step Guide to Product Selection
    In just 10 minutes, we'll share a comprehensive step-by-step approach to product selection that will step up your selling success!
  • Marketing Campaign Strategies for the Social and Mobile World
    This PRO seminar will help you get your mobile-first plan in place by teaching you how consumers are using their mobile devices to connect with businesses!
  • The New Email Marketer
    As email continues to reign as one of the most profitable and successful marketing channels, today's email marketers are now expanding, embracing and integrating other channels into their email marketing programs. With email strategies often acting as connectors to website, mobile, social, print, and in-store strategies, email has become the hub in driving cross-channel integration.
MarketingProfs uses single
sign-on with Facebook, Twitter, Google and others to make subscribing and signing in easier for you. That's it, and nothing more! Rest assured that MarketingProfs: Your data is secure with MarketingProfs SocialSafe!