How to charge for your animation / Creative work :
There are different ways to do it. If you are an Indie -
1) If the client has a budget, it's easy. Both of you agree or disagree and then adjust.
2) Else....
a) Do your work estimate. Calculate the the Man-hours needed.
b) Charge $12-50 per hour depending on your Comfort Level.
If you have a team :
a) Do your work estimate
b) Check out the talent involved and their respective man-hours.
c) Calculate the total Salary Component for those man-hours.
d) Charge "2X" of the salary component.
Note : Big guys / Consultants charge 3X of the salary component.
Hope it helps. This is what usually I follow as an Entrepreneur and my office offered the costing to the clients based on these principles without referring to me every time when there was a need to quote.
But as a creative artist, I am very arbitrary. I mostly followed the rules of an Advertising Agency ( I owned one) - "Opportunity Cost". I followed this principle even for my software projects. And my Strategic Guiding principle : 1/10th Cost...3X Price with 4X extra features (planned by the client ) offered on the very 1st meeting. That means the Price remains close the Top Quote and a good Production Process keeps the cost low, thus ensuring even a better margin and very little cash outflow.
I tried to compete with bigger guys so that I could get a better Price and Margin.
In my younger days, this has helped me take business away from Lotus Notes, Microsoft Consulting, CMC and many big guys.
Before you start ridiculing, let me share my guiding principles : "A company is as good as the Man it is being represented by". So I map the thinking ability of the Executive of the Competing company who makes the presentation to my client, not the Company per se. So Lotus Notes or Microsoft never bothered me as competitors. Rather they offered me an opportunity to get better profit. I could always unsettle their plan offer with a few strategic questions posed to the client.
But young executives don't understand these simple game plans. MBA's and the board members have their own way of thinking and sometimes you have to let the control go, if you want to scale up the business.
Edited
10 Years Ago by
prabhatM