Maria Piscopo's Business Library Tips

Visit Maria online at www.mpiscopo.com for all the latest business tips, seminars and workshops

Pricing & Negotiating Skills
Make More Money - Have More Fun! Part II
By Maria Piscopo

Now that you and your client have a price you both agree on, you'll find that a better-looking cost proposal can be the difference between getting the job or not. Whether you are doing design, illustration or photography, a meticulous presentation of your price better demonstrates your professionalism and expertise. This will help the client decide to hire you instead of your competitor.

As a creative professional, you have two conflicting needs. One, give your client what they want at the price they want. Two, get the work you want, cover ALL expenses and make a profit. An effective presentation of your cost proposal can help you do that! To show you the best way to present your price, we will "walk-through" a typical creative services cost proposal.

First, we'll look at the most basic element of any price proposal, the contract.

THE CONTRACT

It is most effective to print contract information on your own letterhead to look as professional as possible. Sample forms with standard contract law used all over the world are available from industry publishers such as Allworth Press (New York) and NorthLight Books (Cincinnati, Ohio). PLEASE HAVE YOUR PERSONAL ATTORNEY CHECK ANY CONTRACT BEFORE YOU USE IT FOR CLIENTS. Production expenses can only be estimated and your form should state the client agrees to pay ACTUAL expenses. State CLEARLY what your price includes so that your client knows exactly what they are getting.

It is very important to check on the name of the person with the authority to hire you and pay you. Many clients are given the responsibility to find you, but need further approval to hire you! Break down the description into each step of the creative and production process. Spell it out!

Don't let any expenses come out of your fee. Calculate the delivery charges, special research needed, proofs, special digital delivery - any possible expenses.

Any alteration in the assignment could cause a considerable increase in expenses that must be approved by the client. Getting a detailed job description can avoid having to go back to the client for more money to produce what they really want. Legal terms and conditions of a contract will vary slightly between different creative services, so be sure to use the current industry standard.

PACKAGE YOUR PRICE

Unless you KNOW you already have the job, you may need to give the client more than a contract to help the client decide to hire you. After all, you have told them what it would cost to hire you, but not why it is a good idea!

ADD A COVER LETTER

A good cover letter should warm up an otherwise cold-looking contract and give your client a reason to give you the job. Here is an example of a cost proposal cover letter.

Dear Robert,

As we discussed, enclosed is our cost proposal for the portrait photography we discussed. In addition, you'll find the special black & white samples you requested. You'll find our style of portrait photography will be exactly what you need for your client's brochure. Because we have been established portrait photographers for over 12 years, you will receive the experience you need for this project.

I'll call next week to find out when you will be making a final decision on this job. We are looking forward to working with you!

Sincerely,
Maria Piscopo

ADD SAMPLES

Include samples of the work you will be doing. In this case, the client is interested in a subject expertise, portrait photography, and in a particular style, black and white. Never assume the client will remember the work they saw in your portfolio or promotion materials. Count on having to visually re-establish your creative services credentials. This will help you get the job because you have shown you can do the work requested. Also, samples will help your client help you get the job when he or she has to present your cost proposal for decision by a committee that has never seen your portfolio!

ADD PROOF

In addition to your contract and samples, you can submit proof of your ability to help the client decide to hire you. This would be any item to give you more credibility and can certify for your reliability. Examples of proof include testimonial letters from satisfied clients, awards you have won, exhibits of your creative services, a list of clients, references, organizations you belong to or magazines you've been published in. Anything to give you additional credibility.

With a legally "tight" contract and a beautifully presented package that proves your worth, you can make more money and have more fun!