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need help on what to charge for design work
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Senior User
Join Date: Aug 2002
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I have a friend who asked me to help him take a load off by doing some work for him. The problem is, I do not know what to charge, and what the best way to come about coming up with a final price for my services. Is there a good way to do this? Do I look to see what other people charge online or do you guys have any tips or advice on what the best way to do this. I don't want to be cheating him, or think that my prices are outrageous that he thinks i'm insane, but a good price for me so that I'm not underpaid and to where he doesn't think i'm overcharging.
it was a few logo designs, 3 to be exact, but he wanted 2 variations for each so they can pick from. and then after that I had to make a business card and letterhead for each. Just incase you guys are wondering what I did or designed. Now the problem is, to give him a final price for what I've done.
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Fresh-Faced Recruit
Join Date: Nov 2006
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How many hours did it take you to do the work? Pick an hourly rate that you think is fair (to you) and charge him for the actual amount of time that you used to work on the deliverables.
I no longer do anything at "package pricing" anymore - I strictly bill for my time.
If you did not keep an accurate account of your time, then that changes things quite a bit. I use Billings2 to track my time and create invoices directly from it.
Now, as to what you are going to charge on a per hour basis, that all depends on what you think your time is worth.
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Banned
Join Date: Jun 2005
Location: Indy.
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Senior User
Join Date: Aug 2002
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i have the experience to design and be creative, but i never really done another side jobs, or freelancing work much. I'm just curious to how people charge for their design services, as a set price or hourly rate. Cause I've heard of both sides. Just wanted to get everyone else's opinion on here, that's all.
digitalscrap I was thinking of doing the hourly thing as well... sounds fair to me. Is billings2 an os x app to keep tabs of your time spent on a project? Is that the best one their is?
Thanks for the input!
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Fresh-Faced Recruit
Join Date: Nov 2006
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Yes, Billings2 is an OSX app that makes it really easy to keep track of time spent working on a project (or part of a particular project). It also generates invoices for you based upon the time you work and the parameters you set. It's really easy to use and works really well. I can't say if it is "the best", but it is what I use and and I find it very helpful.
Here's the website if you'd like to read more about it - Billings 2: Time tracking and invoicing for Mac OS X
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Senior User
Join Date: Aug 2002
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digitalscrap I just downloaded a trial and wow, this is what i've been looking for all these years! It's a joy to work with and very userfriendly, you can even make your own invoice templates too! Thanks so much for telling me about this app. This really takes the question work on what to charge.
A question though. Do you include taxes in your final price? Not sure what that would be used for or when and when not to use it.
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Mac Elite
Join Date: Mar 2001
Location: Madison, WI
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Originally Posted by nycdunz
A question though. Do you include taxes in your final price? Not sure what that would be used for or when and when not to use it.
Assuming you mean sales tax, this depends on your state. You can probably get a copy of your state sales tax guide online, or just ask an accountant.
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Senior User
Join Date: Aug 2002
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Macola, yes sales tax is what I meant. I thought this was optional and was up to you to decide if you wanted to include tax or not in your final price.
for those of you who do work on the side for your clients, do you charge them sales tax or no? And also if you do freelance work on the side with your fulltime job are you required to get a business license or no?
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Last edited by nycdunz; Mar 7, 2007 at 02:29 AM.
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Moderator
Join Date: Jun 2000
Location: inside 128, north of 90
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it's a really good idea to agree on a price/hourly rate before doing the work. If this wasn't a friend of yours you could have been burned.
I've never bothered with sales tax, but then freelance isn't my fulltime gig.
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Fresh-Faced Recruit
Join Date: Nov 2006
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Originally Posted by nycdunz
Macola, yes sales tax is what I meant. I thought this was optional and was up to you to decide if you wanted to include tax or not in your final price.
for those of you who do work on the side for your clients, do you charge them sales tax or no? And also if you do freelance work on the side with your fulltime job are you required to get a business license or no?
Generally, services aren't subject to sales tax, but physical deliverables very well may be, even if you are only charging them for your services. As Macola stated, it is definitely best for you to check you state's tax codes - you don't want to get into any trouble.
Glad to hear you like Billings2!
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Dedicated MacNNer
Join Date: Feb 1999
Location: ME
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Do yourself a big favor and DO NOT open a real can worms. If you do not have a state sales tax number, DO NOT GET ONE. Once in your state's tax system, you will be required to monthly file your billing AND pay sales tax on all taxable INVOICES, even if you have not been paid. Most states recognize that "creative or marketing consulting" is not subject to sales tax.
Save yourself from a big headache and "consult"
W2
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