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Positioning, Proposals & Pricing

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PPT from HOW Interactive Design Conference Business Bootcamp 2012

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Positioning, Proposals & Pricing

  1. 1. Business Bootcamp: Positioning, g,Proposals & Pricing With Ilise Benun and guests www.marketing-mentor.com
  2. 2. We help creative professionals (in-house and out) (i h d t)promote and pp price their work.
  3. 3. Ilise Benun• My positioning: I specialize in business issues for creative professionals.• Full-time mentor• Lots of presentations/workshops• Author of 7 books
  4. 4. www.marketing-pricing-guide.com www.creativeguidetomoney.com
  5. 5. WhoWh are you and why d h are you here?
  6. 6. What i Wh t is it about b tinteractive projects?
  7. 7. They are: • More complex • More technical • More difficult to scope out • More challenging to price • More prone to scope creep • What else?
  8. 8. In-house In house Vs. VsOutsourced
  9. 9. In-house survey: ResourcingWho do your internal clients always turn to for creative projects? They are required to come to use to get it done (even if we have to seek outside assistance) We h W have an outside t id 11.1% agency/design studio of record this gets bid to first 22.2% They can source the work y anywhere they want (we compete against 61.1% freelancers, outside agencies, and consultants 5.6% Other (please specify)
  10. 10. Part 1:Positioning
  11. 11. The problem: h blClients don’tCli d ’ understand d t dand/or value al eyour services services.
  12. 12. The solution: h l Clients must b Cli beassured th t you d thatunderstand their nderstand specific needs needs.
  13. 13. Positioning = clarity• what you offer y• for whom• how you’re different y
  14. 14. Big ideas What i the Wh t is th perception?ti ? • Blurry or clear? General or specific? • O d t k or strategic partner? Order-taker t t i t ? • Specialist at anything? •KKnowledge of t h l l d f technology? ?
  15. 15. A B C D“Fill In The Blank” is an “Fill In The Blank” is a “Fill In The Blank” imagination and business We deliveraward-winning, strategic digital design and innovation exposes, big ideas anddesign firm specializing interactive product strategizes, strategizes and creates even biggerin branding di b di and corporate t development company d l t ideas, products, and results withcommunications across based in New York City. partnerships, delivering more agilityall media. innovative design with and efficiency We create beautiful, aspirational intensity. A than largerSince 1984, we’ve helped , p useful, and unique , q multi-platform innovation New Y k N Yorkleading companies content-driven products studio known for its digitalaround the world across digital and dimensional design agencies. Wedo one thing traditional platforms. process that transforms succeedexceptionally well: build Were passionate about the smallest idea into the becausepowerful brands that helping our clients largest deliverable, XXX were good,grow their business. achieve their business has powered start-ups in not because objectives, while meeting various industries from were big. the highest standards of interaction design and telecommunications, production. software, and retail to ft d t il t Fortune 500 companies nationwide since 2003.
  16. 16. In-house survey: PositioningHow do your internal clients perceive you? As a production shop - a non- creative resource that just executes their ideas 11.8% 11 8% 11.8% 11 8% As strategic partners - people who understand the brand and can collaborate on big 17.6% picture marketing ideas and technology solutions As technology specialists - collaborators who are up to date on the latest technology and can suggest new solutions 58.8% Other (please specify)
  17. 17. Positioning tools• Positioning Statement• Your name (firm or department)• Your titles• Your tagline• Your Twitter handle• The name of anything you publish
  18. 18. Your Positioning g State e t Statement It’s for you -- for internal usage only.Its purpose is to define for yourselves -- to yourselves -- what you stand for and what makes y stand out. y you
  19. 19. Worksheet 1. Whom are you best equipped to serve? y q pp 2. What challenges do they face? 3. What do they love about y y you? Sample Positioning Statement We partner with clients to create strategic design solutions for indulgence brands – brands that offer an elevated experience to consumers seeking the good life. We work closely with clients to understand the brand’s promise and relevance to consumers, and then translate that into emotionally compelling branding, packaging and marketing materials. Our work grabs the eye and captures the heart. Our specialties are wine, spirits, beer, specialty food and beverage.
  20. 20. Interactive Sample Positioning StatementWe partner with clients big & small, synthesizing information about theconsumer, the company needs, the product implementation andexecution to create designs and experiences that are rich & intuitive,measurable & on brand.We love working with people and nurturing the business relationship,demonstrating to everyone we work with that solving tough problemsand designing products is a rewarding, learning-based process (and isfun!).Always brand-focused, our expertise lies in ideation, creative direction,and design for websites, web and mobile apps.Our specialties are technology companies, products, restaurants, food &beverage, and new business owners.
  21. 21. Reinforce your positioning• Get results of your work and share them• Publish case studies and success stories• Distribute an email newsletter• Bring new technologies to the table• Do “special” projects to show strategicthinking and knowledge of technology
  22. 22. Show your team’s value team s • In person: Show off a recent piece of high- high quality work (in a leadership or networking meeting ) • Online: Build a portfolio website or capabilities brochure and drive traffic to the site. • Vi email + social media: Sh Via il i l di Show samples and/or l d/ case studies (in another departments staff meeting or ….) )
  23. 23. Part 2:Proposals
  24. 24. The problem: The client doesn’t doesn tknow what they need.
  25. 25. TheyTh say…. We need a web site.
  26. 26. In-house survey: ProposalsWhen estimating a project for internal clients, do you: Provide details verbally? Prepare a simple estimate? 17.6% Prepare a detailed proposal? Other (please specify) 35.3% 17.6% 29.4%
  27. 27. You need to know (or find out): • Your hourly rate. • Ho long it takes to do the work. How ork • Your overhead, mark up and profit • Your client s budget range client’s • How important price is to your client
  28. 28. Best practices for proposals• Qualify first (whenever possible)• Ask smart questions (for positioning)• Simple estimate or multi-pg document? multi pg.• Focus on the prospect’s needs• Show relevant samples• Present it in person (whenever possible)
  29. 29. Types of proposals 1. Simple one-page agreement one page 2. Basic estimate (2-3 pgs) 3. Medium (3-10 pgs) (3 10 4. Large (10+ pgs)
  30. 30. Proposal reviewP l i
  31. 31. Cameo #C #1
  32. 32. Erin Pheil• Degrees in Psychology + Digital Media• Started timeforcake in 2002.• Thought I was a designer.• Made lots of mistakes.• Slowly realized I was passionate about the bigger picture & proving results.• Now focused on making meaningful differences and differences—and proving it.Also…• All i to cane sugar Allergic t• Is mountain biking or snowboarding if not at her computer.
  33. 33. Website Blueprint What is the Website Blueprint?
  34. 34. Website Blueprint: BenefitsThe Client… • gets to see how you work • eliminates uncertainty & guesswork from the selection process • is empowered to make a more informed choice • makes better use of th i ti k b tt f their time and b d t d budget • reduces risk (they don’t have to commit to an entire project)You…You • get paid for your hard work + expertise • have the opportunity to learn how the client works • become a trusted authority/partner during the process • can feel confident you’re giving the client what’s best for them
  35. 35. Website Blueprint: Contents Always start out with: • Overview of Client + Site • Client’s Primary Online + Overall Business Goals Client s • Biggest Challenges Faced + Proposed Solutions
  36. 36. Website Blueprint: ContentsAlso included… • Sitemap • Functionality flowcharts (if applicable) • User profiles • List of specific feature requests • Technology recommendations • Punchlist of all work required • Master list of deliverables • Considerations for future • Pricing
  37. 37. Part 3:Pricing
  38. 38. The Th problem: blTheyTh won’t pay what ’t h t you need to charge o
  39. 39. In-house survey: PricingWhen doing a web site (or other interactive project) forinternal clients, do you: clients Tell them how much it will cost? 11.8% Have to fit within their budget? 5.9% Have a chargeback system in place so they know the value of 52.9% what theyre buying? 29.4% Money/price isnt part of the conversation.
  40. 40. Are you talking to the wrong people?
  41. 41. Show Your Value/Process Absence blindness • If they can’t see what you do, they can’t value it. • If they don’t value it, you don’t get credit for it • If you don’t get credit, they won’t pay for it. Make your customer a smarter client about what they’re buying by elaborating on your process.
  42. 42. www.accidentalcreative.com/podcasts
  43. 43. Pricing strategies • Time-based (when necessary) ( y) • Project-based (best for everyone) • Package-based (for structure) g ( ) • Retainers (for cash flow)
  44. 44. Standard pricing memo• Actuals from past 5 comparable jobs• Averages• Adjust for oddities
  45. 45. Process / ballparks• Diagnostic/phase 1 (10k or 20k)• Visual identity (20k to 40k)• Messaging platform (15k to 30k)• S Style guide and training (10k) ( )• Website (60k to 150k)• Implementation (tbd- scope or pass)
  46. 46. Our i i depends on: O pricing d d• Accurate time-tracking• Past actuals informing estimates• A clear scope of work > contract• Fixed, inflexible hourly rates• Transparency with clients about money
  47. 47. Daily, accurate time-tracking by all staff, freelancers
  48. 48. Past actuals
  49. 49. Cameo #C #2
  50. 50. What sWhat’s your top takeaway? • Positioning? g • Proposals? g • Pricing? • Other?
  51. 51. That s itThat’s it. Questions?
  52. 52. Resources
  53. 53. Special offer onDesigner sDesigner’sProposalBundle$20 off withpromo code“SAVE20”www.proposalbundle.com
  54. 54. The 13th EditionGraphic Artists Guild Handbook:Pricing Ethi l GuidelinesP i i & Ethical G id lihttp://www.graphicartistsguild.org/handbook/
  55. 55. Free tips
  56. 56. Free session
  57. 57. Contact me ilise@marketing-mentor.com (201) 653-0783 Blogs: www.marketing-mentor.com www.marketingmixblog.com g g www.creativefreelancerblog.com Podcasts: http://marketingmentor.libsyn.com/ Twitter: http://twitter.com/MMToolbox Facebook: http://www facebook com/pages/Marketing http://www.facebook.com/pages/Marketing- Mentor/178441188839486

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