The first step to getting paid what you are worth is a better understanding of the right questions and answers when talking about price. Your ultimate goal is to quote a price both you and the client can live with and profit by.
What Does it Cost?
This process begins when a prospective client or customer asks the big question: "What do you charge?" Because they are asking the wrong question you must start here with your understanding of the correct question the client is really asking.
There are actually two different corrections to this question and you must determine which of the two the client really wants to know. The first correct question is that they really do have work for you and are asking "What does it cost to pay you for your work?"
Understanding that this is the real question, from here you go on to get a complete project description to give them a cost for it. This includes getting the number of views or elements for the images, variations of the views, backgrounds, usage information, approval stages, and of course deadline information. It is impossible to get too detailed a project description! The more information you can get, the more accurate the cost.
The second correction is that they don't have a job at the moment, but would like to know what it would cost to work with you when they have one. With the increase of price consciousness among clients, this is a great concern. It is also very difficult to answer. How do you quote a job when you do not know what the client wants yet?
The best solution is to understand that what the client is really asking for is some way to measure you against other photographers and illustrators. An hourly or day rate cannot answer this question for several reasons. It is not an accurate measure of cost, as it does not include expenses. It does not transfer usage rights; the real sale is selling the rights to use your illustration or photography. An hourly or day rate also implies employment and you know the client does not want to employ you.
When this situation is presented to you, your best bet is to prepare some simple measuring devices to use when the client wants a price, but doesn't have a job to quote. Try using a price range or asking them to describe a typical job or even pricing something they like out of your portfolio or that they see on your website - anything to give them your measure.
Depersonalize Fee Negotiations
Because you are the creative and are selling your services it is very hard to maintain objectivity. To make negotiations less personal and stressful, you need to turn the client away from the use of the pronoun you charge to talk about what it costs.
You will notice in all of the "scripting" in this article, I am using the magic words "it costs" instead of "you charge," You can depersonalize even more by talking about average costs, normal costs or industry standard costs. Anything you can do to avoid the client jumping to the incorrect conclusion that this money is going into your coat pocket. It is not appropriate (and the client really does not care) to discuss profit and loss, sales and overhead. Depersonalize the discussion and it will increase your objectivity and professionalism.
Budget Talk
You can always ask, but sometimes the budget is something the clients will not tell you about upfront. If the client does present you with a budget for a specific project description, then you can work from there on the next step. But often they will not, and you should prepare a script in advance so that you can handle any direction the "how much do you charge" question takes you.
For example, try this script:
"From what you described, it will cost $15,000 for that amount of work. How does that fit your budget?"
Because you have asked, the client can respond to this open-ended question with information. This script question asks the client to think instead of the more common use of the closed question you would never want to ask: "Does that fit your budget?" That particular question just begs for rejection of your price.
Notice that the word "how" makes all the difference. "How" tells the client you want information, not a yes or no answer. In fact, you should avoid asking yes/no questions whenever you negotiate anything.
Also note that using the word it makes the photography or illustration less personal to you. The less personal the negotiation, the better you can handle the situation. Also take note of the "test question" part of the script, how does that fit. The client can think about your question and if they respond positively, then you go forward to the written proposal. If they are negatively about your price, then you go back to fee negotiations.
Make a Proposal Out of a Price
Now that you and your client have a price you both agree with, the final step is to create an effective and irresistible proposal. Creating a proposal out of your price demonstrates your professionalism and helps you get the work - especially when your client needs to pass along your price for approvals.
To create a proposal, you will need both electronic (PDF) and print versions of an estimate confirmation, cover letter and samples of your work. Never assume the client remembers your meetings, your conversations, your work or any the reasons they called on you in the first place!
A professionally presented proposal consisting of a cover letter and samples along with the cost estimate, tells the client (and the committee they have to seek approval from) "Yes, this is what it costs, but look at what you will get!"
Resources
Photographer's Business Guides:
- ASMP Professional Business Practices in Photography, 7th Edition
- Business and Legal Forms for Photographers (4th Edition)
- The Professional Photographer's Legal Handbook
- Licensing Photography
Illustrator's Business Guides:
- Inside the Business of Illustration
- Business and Legal Forms for Illustrators
- Licensing Art & Design, Rev. Ed.