The Design Professional’s Guide to Pricing Design Services
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Most Architects and Design Professionals are trained to price design services by; estimating their cost to complete the work, balancing it with local market conditions and then negotiating with the Client. A cost-based approach to proposing design fees frequently leaves Design Professionals; competing on fee, alone, to win new work; bartering for position at the negotiation table; and writing proposals that fail to communicate the value inherent in the services offered.
In this publication we take a look at a better way to price design services. By following an interest-based approach Architects and Design Professionals can write proposals that; separate their services from their competition, cater to the needs of a larger client base and offer solutions that clients want to pay for.
By adopting a pricing strategy known (by economists) as Price Discrimination we’ll learn a different approach to pricing design services, an approach that avoids tough negotiations, reduces scope creep and increases our conversion rates.
This publication also details how companies and service providers in other industries have overcome the problem of fee erosion with the implementation of Price Discrimination. We’ll discuss the commercial and ethical considerations of different pricing models and how to implement a best-practice approach to proposing fees for design services.
If you suffer from heavy fee negotiations, low conversion rates, scope creep, low fees or if your clients simply don’t value the service you offer, then this guide is for you.