Wednesday, January 20, 2010

You get what you pay for...

Money is never a fun topic, but with tax season in full-swing... I have money on the brain. I've been thinking a lot about my rates and how I bill for individual projects. I started working for myself almost three years ago and have not increased my hourly rate—not once. I originally came up with my rate based on what others were charging locally (I was still in Washington DC), as well as the time I would be spending on admin and self-employment taxes/insurance. I've always thought my rates were fair and in keeping with industry standards (more on that here)...

However, after moving across the country to a suburban setting, I found that my rates are a bit higher than those being charged by most designers/consultants in the area. As a result, I have very few local clients. I am trying to change that, but one of the obstacles I face (and all designers face) is to help others understand why things cost as much as they do... and to convince clients that having a family member set up a business website may not be the best strategy—even if it does save money initially.

A few things to consider:

1. Getting a project right the first time, rather than having to fix someone's mistakes saves everyone time and money.

2. Designers make their living doing just that—designing. So offering to pay $100 for a logo is sending the message that you either: a) have no idea how much time goes into logo design; b) you do not value a designer's contribution and are ok spending less than minimum wage for your branding; or c) really don't care about the final outcome.

3. Just because you're paying a designer $xx, doesn't mean that they're getting $xx at the end of the day. As with any other business, designers have overhead—computer(s), software, taxes, insurance, rent, administrative time... oh, and we also need a few dollars left over for food, mortgage payments, etc.

4. We're professionals. And clients should expect nothing less from a designer than a professional product created within the designated timeline, all while providing excellent customer service. That's our job. That is not necessarily the modus operandi of some guy a client finds to design their website for $200...

All that said, remember that you really do get what you pay for—with designers, with everything. If you're willing to sacrifice time and possibly quality, then by all means save your money. But if you're looking for a great product at a decent price, then I'm your gal!
(maybe I should raise my rates...)

Thursday, January 7, 2010

Onward and Upward

Another year. I'm getting ready to send out my last quarterly tax payment for 2009 and I cannot believe it went by so fast. It was a crazy year for my little business. I more than tripled my client base, and doubled my earnings from the previous year. I was also able to volunteer my design skills and meet some great people. But all of this rapid growth has caught up with me and I must pause to reflect on what's worked best and what I'm still struggling to accomplish.

Working independently has always been a goal of mine, but in practice I am finding it to be so much more complicated than just putting in the 9 to 5. I appreciate setting my own work hours (and days), and having some control over the clients and projects I choose. It's great to work from home, often in my pajamas. But what I wasn't prepared for (and am still struggling with) is that once I went to work for myself, I could no longer separate my business and personal life. Believe me, I've tried. I just need to find a system that works for me... one that doesn't include checking my email right before I go to bed.

I've always been one to benefit from structure, so this is the year that I get serious about allocating my time more efficiently. No more breaks from work to do the laundry or clean bathrooms. And no more client calls when I'm spending time with my daughter. Each is going to have their time (and place). I'm sure there will be some overlap. It's unavoidable. But my current system is a little too fluid, and prevents me from giving my full attention to any given task. I want higher quality interactions... and less distraction.

It's asking a lot. But I've never been one to ask any less of myself. So this year, I don't seek to take on a multitude of new clients, or even increase my earnings (though both would definitely be welcome). My goal is for balance and better relationships with those already in my life. And if any of you have any advice along the way, feel free to send it my way!
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