How to negotiate design and production fees

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

We first ask the artist what he wants to charge for our project. More often than not, he will turn it around on us and say, "Well, what's your budget and we'll see if we can work with it." Since we already have a good idea of what we can pay, we'll come up with a figure slightly below that, to give ourselves room to negotiate.

These are the most common response scenarios:

A. "That sounds great. When can we start?" This usually means you quoted a higher fee than the artist expected. Everyone should be pleased.

B. "That's less than I had in mind, but I'd like to work with you, so I'll do it." You quoted a price he expected, more or less. You can do business if he seems eager to do the project. But if he seems to say "yes" because he is desperate and his attitude is bitter, you might not get his best effort. In that case, we'd say, "Perhaps this is not the right project for you."

C. "That's quite a bit less than I expected. Can you do any better on the price?" If I think the artist's work is worth more, and I think I can get more money, I'll fight for it. If I can't get a higher budget, I'll say, "I'm really sorry we can't work together on this, but the next job that's right for you, with a higher budget, is yours."

D. "You must be kidding. That price is outrageous and insulting." To something like that I'll say, "I'm sorry you feel that way, but there are a great many artists as talented as you looking for work, and I'm sure I'll find one who will not only work within my budget, but who will also be more pleasant and professional to deal with." And I never call that person again.

Setting boundaries

Another variation in pricing style, which lends itself mostly to designers, is the hourly rate. This is usually used by artists, designers and production people who work on computers. Most of the freelancers we hire for a day or week are hourly workers. Experienced computer artists make between $25 and $38 an hour. But some will charge as much as $200 an hour. If you decide on an hourly rate, be sure to set maximum boundaries--and be sure to put it in writing.

Formalizing the arrangement with the artist

In fact, any arrangement you make with an artist should be formalized and put in writing. As David Goldman says, "A purchase order is a contract that protects both parties equally. A negotiation must be documented in writing before an assignment begins, and should be signed by both parties."

To sum up, the best way to get the best work for the best price is to be clear, honest, friendly and knowledgeable. Give value for value,a nd ask lots of questions--both of your peers and the artists you work with.

Have some set budget in mind before you start negotiating. Trade off generous time allotments, creative freedom, extra reprints, additional future work and a great working relationship for a better price for topnotch work.

And remember: Get it in writing.