Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
billopen-endedorx1cmeter-run-ningx1dprojects.Itisfortheserea-sonsthatwebelievethatbillingratesnotonlyhavetobecare-fullycalculatedbutshouldbeacknowledgedwhenappropri-ate.Alsoseex1cRateVisibilityx1donpage5.ACTUALVERSUSIMAGINEDBILLINGRATESTheratesCrmsactuallyendupchargingbilledareoftenlessthantheratestheyusewhenestimatingbilling.Thatx19sbecausesomeworkhoursgounbilledwheninvoicingdueeithertoerrorsthedesiretopleaseaclientortosticktoanestimate.TheresultisthatmanyCrmshaveeffectiverealizedratessubstantiallybelowtheirestimatingrateorwhattheybelievetheyarecharging.Forthisreasonrespondentstothissurveywereaskedtopro-videtheiractualbilledratenottheratetheymightthinktheyareusing.Doingsocertainlydepressedsomeratesreported.Alsoseex1cEstablishingRatesx1dpreviously.SIZESOFRESPONDENTFIRMSThefollowingquestionwasincludedinthesurveyprimarilyasameansofsegmentingresponses.Whatisyourx11rmx19sfeeincomeTheresponsestothisquestionareunimportantfromasurveystandpoint.Itdoesshowhowev-erthatsurveyparticipationwasroughlyrepresentativeofthecreativeservicesindustrywheremostCrmsaresmall.TheabovepercentagerankingwouldlikelybereversedifitshowedshareoftotalclientspendingbyCrmsize.Continuedonpage5.2CreativeBusinessx14SeptemberOctober2011perhourtobeproCtable.AratehigherthanthisbaselinewillresultinmoreproCtaratelowerlessornone.Thatrateshouldbeusedforallclients.ThereisnoCnancialjustiCcationandseldomarea-sontohavedifferentratesfordifferentclients.Calculatingoneormoremul-tipleortieredratesbasedonworkplacefunctionsisabitmorecomplicatedbecauseitalsoinvolvesapportioningaver-agelaborcostsforthefunctionscovered.Theprincipleisthesamethough.Firmsusingtieredratestodayseldomhavemorethanthree.Withtheoccasionalexceptionofhigh-salariedprincipalsorx1ccreativestarsx1dCBdoesnotrec-ommendmultipleratesbasedonemployeesalaries.ItismorecomplicatedtoadministerandhaslittleCnancialadvantage.WhetheryourCrmpreferstouseoneorseveralrateskeepinmindtheinterrelationshipwithbillableefCciencylaborutiliza-tionrate.Abillingratemustprovideaprotatarmx19saver-agebillableefciency.IfbillableefCciencygoesdownandtheratestaysthesameproCtablywilldecrease.BILLINGRATESANDPRICINGAbillingratemultipliedbyesti-matedworkhoursneednotnec-essarilydetermineaprojectx19sprice.AllitdoesisprovideabestguessestimateofwhatshouldbechargediftheprojectistobeproCtable.IfconditionswarrantorthereisavalueorusagecomponenttoconsiderthepricecanbeincreasedknowingthatproCtwillincreaseproportionately.Converselyapricecanbeloweredasmightbedesiredforapromotionalorportfolioopportunityknowingjusthowmuchdoingsowillcost.BillingratesalsoprovideajustiCablebasisforthepricingofunanticipatedprojectchangesoradditionalservices.AndofcoursetheyaretheonlywaytoIncreasedaccesstoAdobepro-gramsandfreeonlineartandtem-plateshaveaddedtothepoolofdesignersregardlessofeducationandexperience.Thishasaffectedtheperceivedandactualvalueofgoodappropriatedesignanddri-vendownpriceswithallbuttheupper-endclients.Finallystartingtoseeincreasedbusinessoverthelast9months.Plantoraiserates10in2012.Billingatthesameratebutputtinginmorehoursthanestimat-edduetoincreasedx1chand-holdingx1dtimewithclients.ProCtmarginis14.6thisyearcomparedto21.3lastyear.Couldbebetterbutnothorrible.Biggerconceptualworkscanstillbehad.Smallerthingsarex1ctem-platedx1dandpulledin-house.Manylargeclientsarepushingback.Onehascutournegotiatedbillingrateby10.IhavefoundIgotbetterclientswhoappreciategooddesignbyraisingmyrate.Toomanyprovidersworkingatcut-ratepricesforclientstopayourpreviousfees.Wex19rejuststartingtoseesomereliefastheeconomyimproves.Crowdsourcinghasaffectedmybusiness.Idonx19twanttolowermypricingbutitishardtocompete.Totalfeesformostprojectsareapproximately50ofpre-recession.Contractsthatoncewentfor10karenowgoingfor5k.MyratesdroppedwhentheeconomytankedsoforthelasttwelvemonthsIhavebeentryingtogetbacktowhereIwas.Gettoknowpotentialclientsface-toface.Thatisthewaytogetyourhourlyrate.Decreasedbefore.Recentlyincreasedbutnottothesamelevelitwas12monthsago.Rateshavestayedthesamebutclientbudgetshavedecreased.RaisedratesinJanuary.Firstincreasein5years.Ix19vedevelopedatieredpricingstructurewherebytheclientreceivesmoreorfeweriterationsofinitialconceptsbasedonwhichtiertheyselect.Highertierincludesmorerdtimeaswell.Ratereducedfrom100hourtoabout75inrecentyears.SELECTEDSURVEYCOMMENTS452.5m61m2.5m