I’ve been sewing and designing for years. But I have been told I do not charge enough for the work I do. I was just approached by a woman who has plenty of money to start up a business. she wants me to design, pattern and possibly set up a staff together to out put the work. I do not know were to begin on pricing or charging for this major endeavor. If there is anyone out there that is familiar with the monies that go along with a job like this please let me know. Also if you had any interesting situations that may have come up while working on a job like this.
Thanks Helen.
Replies
I would go for a partnership or percent of profit. Sounds like she couldn't have her business without your skills. Take advantage of that. Whenever you are negotiating price start ABOVE what you would think is fair and will make you happy. You might get it. If not you can negotiate to where you would be happy. Whatever you do, don't sell yourself short. Go for a big piece of the action, especially if you are this critical to success.
Edited 6/7/2007 7:21 pm ET by solosmocker
Thanks for the advice. I have always priced my wwork to low.But over the last year I've had a rude awakening.
Helen
I agree with solosmocker after reading a few books at the library yesterday I started to think about it a lot I was reading so many different book ideas that's when I started working on my contract again
One simple rule--your price should scare away somewhere between 10 and 20 percent of potential customers, or you aren't in the right ballpark for either what you charge, or to whom you market your services. No business with accurate market plans and pricing strategies can sell to everyone out there.
Most common mistake is failing to account for all of the fixed costs you incur just to get and keep the doors open, even without selling a single service. A portion of the cost of all insurance, licenses, state fees and taxes, bank account maintenance fees, accounting/payroll service charges, utilities, rent, advertising, cell phone, internet provider, equipment service contracts, health insurance, employee benefits, payroll tax (FICA), state and federal unemployment, etc...MUST be rolled into your base rate, whether that be by hour, by the square yard, by the product, or whatever. Check with your local small business association for people who can help you with this.
A trick: set your charges, then if you need to attract a desireable customer and fear the cost may be offputting, you can say they will get an introductory discount, or a some other label that makes them understand they got a special deal, but that the regular price is different. If they like your work, they'll return at the real price.
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