My Dad, who was president of a large commercial photoengraving company, always said: "Costing is a science, but pricing is an art".
Very profound. Finding what is cost is pure accounting while trying to figure out a price that will make people buying is an art.
Yes, here at work we just time estimated a big design job for 16km of freeway widening including about 8 bridge replacements.
Work for me is at a 1500 person plus multi-disciplinary consulting engineering firm with some subconsultants hired in as specific niche expertise is required.
We applied our standard markup factor, which is 3x our team salaries for our executive team review.
This markup rate is aimed to cover insurances, salaries and benefits, office and leasehold gear payments, equipment supplies, internal overheads of support functions like accounting, HR, IT, internal Project Management, etc.
Senior executives cut the markup to 2.7x (still profitable) in a bid to secure the job. Our bid proposal (which is evaluated and scored on qualifications 50%, past ratings with the client agency 40%, and our fees 10% has been accepted.
So now 130 full time person years of design work to the usual full qualtity assurance and quality control requirements needs to get done and issued for construction bids in the next three years.
Fortunately I just have a team of 5 to manage and liaise with only three other departments groups most of the time. Oh, and 10 other work assignments presently in various stages of completion, as well as two proposals for smaller jobs for existing clients I still need to finish and submit.
So when you grouse about the challenges of freelance, rememeber the corporate alternative. It pays, but there is not a lot of artisitc creativity in my day job.
my real name, imagine that.
typical mark up is 3x cost
i bid on a huge job a while back, and
i was asked to state in the estimate
hard (direct) and soft(indirect) costs, and what percentage
of the total job my profit was to be ....
it was a brutal estimate ...
This thread really, really needs to be moved to the Presentation and Marketing forum.
“Photography is a complex and fluid medium, and its many factors are not applied in simple sequence. Rather, the process may be likened to the art of the juggler in keeping many balls in the air at one time!”
Ansel Adams, from the introduction to The Negative - The New Ansel Adams Photography Series / Book 2
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Originally Posted by MattKing
Blansky is right. I used to work for a studio in Kentucky that is the highest priced in the state. It attracted a high dollar customer. We even had President Clinton while he was in office. We charged the hell out of stuff. A single 5x7 RC print would cost $89 unframed. But that print had to pay for his time shooting it, my time processing the film, retouching the sitter, printing the negative, spotting, mounting the print on board, our office staff calling and scheduling the sitting and sales appointments, and the sales person presenting the proofs. That still doesn't include the film, paper, chemicals, water and electricity for all of the above, business licenses, and taxes.
Because of all that, we charged a lot. $120 for a one hour sitting, prints are sold separately. Large framed fiber prints were pushed during sales for several hundred apiece.
I can directly relate to that.
Originally Posted by Mainecoonmaniac
Now with some life experience I've started again and Im approaching the 'not quite just a hobby' mark again too. Strike two it seems. This time I stand a better chance. Wish me luck. Backing it up with a nursing qualification this time.
All that really matters in the end is the image, not what your using to create it.
The last commercial job I took, I accepted scale from the publication. Happens that I made $400 plus all expenses for a one day shoot for "Fine Homebuilding Magazine" The shoot was above Teluride, Co. for an article a friend was writing for them, and I was working as a carpenter on that project anyway. I made double my regular days pay plus some extra for that, took all of an hour of my time after work to shoot the items needed.
The real tip off of this problem is the flickr credited (probably only payment made) in the image on that page.