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Don't Take Advantage Of Your Design Clients - RD068

Don't Take Advantage Of Your Design Clients - RD068

FromResourceful Designer: Strategies for running a graphic design business


Don't Take Advantage Of Your Design Clients - RD068

FromResourceful Designer: Strategies for running a graphic design business

ratings:
Length:
21 minutes
Released:
Apr 14, 2017
Format:
Podcast episode

Description

Would clients stick with you if you take advantage of them? I was thinking recently how our design clients rely on us when it comes to their branding and marketing material. How easy would it be to take advantage of that trust and make a few extra dollars on each project we bill them for. This reminded me of a joke I heard not too long ago. A young boy enters a barber shop and the barber whispers to his customer, "This is the dumbest kid in the world. Watch while I prove it to you." The barber puts an old crumpled dollar bill in one hand and two brand new shiny quarters in the other, then calls the boy over and asks, "Which do you want, son?" The boy takes the quarters, thanks the barber and leaves. "What did I tell you?" said the barber. "That kid never learns!" Later, when the customer leaves, he sees the same young boy coming out of the ice cream store. "Hey, son! May I ask you a question? Why did you take the quarters instead of the dollar bill?" The boy licked his cone and replied, "Because the day I take the dollar, the game is over!" The moral of this joke can apply to our design businesses just as easily. I’ve talked before about pricing strategies for your design business, as well as how raising your prices can actually attract more design work. But one thing I haven’t talked about before is our ability to take advantage of our clients. We work in an industry without standardized pricing. Someone could literally pay $5 for a logo or fifty thousand dollars. We’ve seen it happen both ways. And paying more doesn’t necessarily mean you’re getting a better product for your money. With this wide pricing range available to us, it could be tempting to take advantage of our clients for a few extra dollars here and there. it would be so easy to pad your time if you’re charging by the hour. After all, your client doesn’t know how long you actually spent on their project. If you bill by the project you could easily pad that price as well in order to put some extra dough in your bank account. I’ve seen it happen before. I’ve seen designers boast about it. They get greedy and if it works once they try upping it again next time. But just like the kid in the joke, if you take more for your services than they merit, your game could soon be over. I knew a designer who priced himself beyond what his market could afford and he suffered. In fact, a couple of my clients are with me for that exact reason, their previous designer got greedy and started charging too much. I’m not saying you’re not worth your rates. In fact, most designers I talk to are not charging enough for the services they provide. What I’m saying is know what your rates are and stick to them. This applies to all levels of business. I know some designers who won't take on projects under $5000, and that’s fine. There is a market at that level of work. But the same rules apply to them as to those who do less expensive work. If they charge $10,000 for a corporate website that’s only worth $7,000 it could come back and bite them. This doesn’t only apply to cost. The same goes for services and features. There’s a term that started in the restaurant industry but has migrated across all business. It’s called the upsell. If you’ve ever been asked if you would like to turn your meal order into a combo, that’s an upsell. They are trying to persuade you to purchase something that sounds like a great deal. A fry and a drink for an extra $1? What a bargain. You'd be crazy not to take it. What they did was get you to spend an extra dollar, money you weren’t planning on spending to begin with, on something that cost them only $0.30. They didn't have your best interest in mind. They were simply trying to make an extra $.070 off you. The same applies to your business. If all a client needs is a very simple $500 website don’t try to sell them a $1000 website full of features they don’t need. Again, I’m not saying upselling is wrong, providing what you add is of value to the client and isn'
Released:
Apr 14, 2017
Format:
Podcast episode

Titles in the series (100)

Offering resources to help streamline your home based graphic design and web design business so you can get back to what you do best… Designing!