Sam Brown ~ David Airey's Design Pricing Formula

#393 17th August 2009 at 1am Link 3 Comments

I really like David Airey’s recent article on the ever evolving and on-going struggle of pricing with his rather interesting Design pricing formula.

level of expertise + project specification + turnaround time + service and support + level of demand + current economy + physical location = TOTAL COST

Read David Airey’s Design pricing formula →

Your guess is as good as mine as to what each of these numeric values are, but these are all definitely things worth considering when working out a price. I’d be interested to hear peoples thoughts on how the current economy and physical location should affect prices?

Alex Blundell 20 August 2009, 00:40 #1

This (suprisingly) looks failry similar to how I calculate my rates. According to David’s formula, mine would look something like this:

level of expertise x turnaround time + service and support +/- level of demand = TOTAL COST

level of expertise (In the form of hourly rate based on what I think I AM worth, this generally wont change)

~~project specification~~

turnaround time (In hours)

service and support (billed at my hourly rate or quarterly)

level of demand (It goes without saying really that if i’ve not got much on, I may do a deal in order to get the job, generally though this will not be a contributing factor)

I can’t see current economy + physical location though really being a factor for me at this stage.

I can imagine this would be fairly standard way for a lot of designers but it would be good to get some other peoples input on exactly how they calculate there rates.

Sam Brown

David Airey's Design Pricing Formula

Comments

Alex Blundell 20 August 2009, 00:40 #1

David Airey 20 August 2009, 08:37 #2

Cyprian GwÃ³ÅºdÅº 23 August 2009, 11:04 #3

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