Question

Topic: Branding

Product Line Identity Pricing Criteria

Posted by Anonymous on 9/26/2008 at 12:01 PM ET 250 Points
I am a creative director/designer, and have been asked to submit a proposal for a franchise owner of 9 stores within a nationwide retail chain. The opportunity involves creating an in-house product line identity to be used on various packaging. While it is intended only to be used within the 9 stores, there is potential that the ID could be sold to other franchises. What components and criteria should I base my pricing structure on?
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RESPONSES

  • Posted by ilan on 9/26/2008 at 12:09 PM Accepted
    I would say that the main criteria for the design quality is the positioning of your franchise client.
    If it is an upscale product/service, price it accordingly.
    If its a mass market, low level segmentation position, go a bit lower.
    But to me personally, the main thing is not the number of stores.
    The main thing is the amount of work!
    Branding work could be the same for one store or 100 stores...
    Its up to you to measure your own value and contribution to the growth of this client.
    If you position yourself as the valued expert, charge accordingly.
    If you are just "the designer", a guy who is replaceable at any time for some other guy with a Mac, you can't charge much.
  • Posted on 9/26/2008 at 4:24 PM Author
    Thank you both for your insight! I am self-employed, and hope to grow with this client. Your comments about obtaining future work with this client are exactly right. However, I also don't want to miss out on other bigger picture franchise opportunities.

    Thanks again!
  • Posted by matthewmnex on 9/28/2008 at 8:39 PM Member
    If I may,

    Whilst everyone wants to protect their future incomes and look at the long the picture, you also have to understand the value that you bring to the project / client.

    If I retain a lawyer for a project, he gets paid by the hour. If I retain a consulting engineer, he gets paid by the hour.

    You role within the whole scope of the project is a small one. There are also plenty of free lance designers in the market as well as design agencies that will be hapy to pick up the project.

    Just decide for yourself how you want o charge your customers for the work you do. Hourly, monthly or on a project rate. Then put your proposal to the client and if he likes your work and your price, he will take it. If not, he will look elsewhere for a designer that is more affordable.

    If you are not sure how much to charge, I suggest that you get online and canvas some free lance and design / ad agencies. Then get an idea from them how much they charge for their work and how they structure their agreements.

    Sorry to be tough but I want to bring you back down to earth before you start dreaming about lifetime royalty payments for a service that is frankly a very simple one that you are offering.

    Good luck.

    Matthew
  • Posted on 9/29/2008 at 8:10 AM Author
    Thanks for your input!

    My question was rooted more from the perspective of dealing with a franchise opportunity for the first time, and making sure there wasn't something else I should consider in the proposal process.

    I am comfortable and confident with the hourly rate I charge, and totally understand my role in the project. While it is true there are many free lancers out there that will make it look pretty, my role is to create a brand that will elicit a positive emotional response to the product. I don't necessarily agree that the service I will be providing is a simple one.

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