How to negotiate design and production fees

Folio: The Magazine for Magazine Management, Annual, 1995 by Vera Steiner

As the principal of a design studio, I have to deal with both sides of the question of negotiating fees on a daily basis--first negotiating my own design and production fees with my clients who are editors, publishers and art directors, and then becoming the client with illustrators and photographers whom I commission for my clients' projects.

This is probably the toughest part of the job, with the possible exception of dodging bike messengers in New York City. The process falls into three basic parts: deciding what you are willing to pay for a job, detemining what your negotiating strengths are, and finally commissioning the job and negotiating the fee with the artist.

What is the job worth?

Flexibility and a willingness to approach each project individually are important in determining what you think is a fair price for a job. We quote a flat per-project fee that we feel is appropriate for a specific project. However, we have a general "laundry list" of prices for jobs that are similar. We customize that price based on many factors: size and complexity of the job, number of pages, usage rights, color circulation of the publication, whether it is consumer or business, standard or tabloid format, and so on. We also factor in how much time is allotted for the project and how many design variations the client wants to see. Then we add on estimated costs and expenses, which we guarantee within 15 percent of our estimate.

Taking the nuisance factor into account

There is another aspect of determining price that is not openly discussed, but everyone figures it in--or should. We call it the nuisance factor, and it's just what it sounds like. Early on, an astute designer might discern that a client is going to be difficult or fickle--or worse, just doesn't know what he wants. Or it may become apparent that the artist is a prima donna who will be difficult to work with. Either situation means more work and more time spent on the project than normal--which you must factor into the price you're willing to pay.

To enhance your skills at coming up with payment quotes to offer an artist that are both within your budget and fair, consider the following steps:

* Shop around. See several artists (in person, not just their portfolios).

* Get recommendations from others who have had similar projects at the time.

* Compare apples to apples. If your project is a publication redesign, don't get quotes from a designer who specializes in annual reports. If your photo shoot is of a company executive, don't get price quotes from a still-life photographer.

* Look at lots of portfolios, even during times when you don't have a specific project.

* Compare prices between artists who have similar amounts of experience in your type of project. A hot young talent fresh out of art school may not yet grasp the concepts of budgets and deadlines. This doesn't mean you shouldn't use him; it just means you shouldn't compare his fees to a more experienced artist's fees.

* Go to art school exhibits to discover new talent who may be more eager for exposure and printed samples than a big dollar figure.

* Even if you don't think you can afford a particularly well-known talent, ask. If she is between projects or likes you, your project or your magazine, she will often do the job at your lower price.

* Don't be too proud to beg and grovel. I often tell high-priced illustrators and photographers (truthfully) that I know they are used to getting more for their work than we can afford to pay, but if they can find it in their hearts to do this for us at this price, we will be sure to make it up to them in the future. This has really worked for us, and there is nothing unsavory about it. If you don't ask, you don't get.

Enhancing your negotiating stance

Once you have determined what you think is a fair price for your job, it's time to start negotiating with the artist. David Goldman of the David Goldman Agency says, "There are a couple of aspects that can enhance your negotiating stance, First, guarantee that the artist will be paid on delivery or within seven days of submitting the finished artwork. This is always attractive to an artist in need of money, in lieu of the extra $100 or $200, in these tough times. Second, offer the artist numerous reprints--25, 50, 100 or even 200. This will give the artist the ability to do a direct-mail promotion while saving him printing costs."

Wendy Tiefenbacher, who as photo editor of Meetings & Conventions commissions a large amount of photography each month says, "My rates [budget] are low, compared to the rest of the industry, but I still want to use the best photographers. So I'll gang up shoots, give the photographer more than one assignment."

Goldman adds, "The prestige of working with a certain art director or designer, or for a very prestigious publication, is an important factor to many artists" and may help in negotiating the price downward.

The negotiation dance

The artists or photographers with whom you discuss assignments are likely to start the negotiations with the highest figure they feel they may get, but will have in mind a figure they can live with. The purchaser should set a figure he'd like to pay, but have a maximum figure in mind that he could come up to, if necessary. When we commission an illustration or photograph, this is how the negotiating "dance" usually goes: