The Process of Setting Fees

There are three fundamental conditions to consider during the process of setting fees. One is the cost of staying in business (overhead), second is a best estimate of the nature and complexity of the proposed project (variable costs), and third is knowing the intrinsic value of the final product (market conditions). No matter the size of the organization, it is most likely to enjoy long-term success when there is detailed, up-to-date information available on its consumption of resources translated into financial terms. Resources may be staff and freelance personnel, supplies and materials, and outside services.

Therefore, it is imperative to set up a record keeping system that tracks time, payables, and income. Record keeping can be approached in a variety of ways. An experienced accountant should be retained in helping to determine whether the business requires a customized bookkeeping system or whether off-the-shelf software may be suitable.

This is an excerpt, for the full text view the attached pdf. "The Process of Setting Fees" by Eva Bruck from Professional Practices in Graphic Design, Tad Crawford, ed. Allworth Press, 1998. Re-printed with permission of author.