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Author
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Topic: Finished Design Pricing
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BigMan
unregistered
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posted 12-19-2003 01:40 AM
Considering, there is a product design that a company is wanting to purchase. How should I price the work if they want the design? Should I re-calculate the hours worked. Any advice would be appreciated.
Thanks
IP: Logged |
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unregistered
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posted 12-19-2003 10:45 AM
you may have to re-phrase your question, it's a bit cryptic.Are you saying some company wants to hire you freelance to design something for them BUT they want to own the rights to the work that they are paying you to do? ...hmm :squint2: IP: Logged |
annie
unregistered
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posted 12-19-2003 11:17 AM
figure what it cost you but keep that close to your vest...what it is worth to them? is the real question and it may take some probing and some negotiation...but you got what they want and that is a good place to beIP: Logged |
Pro-D
unregistered
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posted 12-21-2003 01:15 AM
You should not consider your finished design in terms of labor cost. It is an intellectual property (like a book or a song) and you should consider the potential commercial value of your design and start from there. You may want to consider a guaranteed base price plus royalty if the sales exceeds certain number. In this way you will avoid the pit fall of royalty (they may never market the design or they may just want to kill the possibility of your design ever commercialized by buying it) and the pit fall of fixed pricing (the product may be a wild success selling billions but you only get $10k, for example). You should certainly talk to a lawyer when you draft a contract.Good luck. IP: Logged |
oblivious
unregistered
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posted 12-21-2003 06:30 PM
quote:
Originally posted by BigMan:
Considering, there is a product design that a company is wanting to purchase. How should I price the work if they want the design? Should I re-calculate the hours worked. Any advice would be appreciated.
Thanks
there are alot of factors here, but it might make sense for you to look at royalty type percentages... say 3%(?) of the gross sales would be generous and encompase ideation on through to prototype and engineering...
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Pro-D
unregistered
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posted 12-22-2003 02:56 PM
One thing that you really have to be careful is that they may not buy your design to produce it. Maybe your design is close to what they were thinking about shipping. They are afraid of a lawsuit, mayube. So, if you do the royalty thing, you may never see a penny....IP: Logged |
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