Lowering Rates?

Lately I've been reading a lot of articles about hourly rates and the effect our country's recession is having on them. Many freelancers are lowering their rates to keep business flowing in as much as possible, since consumers and businesses are cutting back costs. Other designers are doing away with hourly rates altogether, creating one-stop pricing per project, no matter the size or the scope. Then there's the other group of people who are just choosing to wait it out and do nothing, as far as a price change is concerned.

Of course, as designers and as small business owners, we've seen "calculate your rate" worksheets - those fill-in-the-blank sheets of paper promising to help you figure out your rate in order to cover overhead, tax and income costs. But what these worksheets don't calculate is the possible fluctuation needed to accommodate an unstable economy.

In my personal opinion (and I always have one), I feel it's somewhat "used car salesman-like" to move your prices up and down based on what people can afford to pay. As a professional, I feel it's more appropriate to run a special, or a promotion of some sort, should customers need a break. I was hoping to get a little feedback on this, just to see what other designers and small business owners felt about the issue.

Day 4: Run a Promo

Running a promotion can be a great way to increase your sales, gain referrals or get a little exposure in your area. There are many different campaigns businesses of any type of put on. A few ideas are as follows:

1. Discount a product or service: People love discounts, even small ones. Whether times are slow or you're just looking to build your work load a bit, create a campaign and offer something as small as 10% off the customer's next purchase.

2. Referral Campaigns: These promotions are great because they don't require much. Simply base your campaign on the premises that if a client refers you to someone and that new individual signs a contract for work or buys a product from you, the original client receives a discount, gift or coupon. Let your clients (the people who've worked with you first hand) be your salesmen.

3. Get One, Give One: These campaigns are similar to the referral program. For example, if your client buys a new lawnmower, they get another one for free - but they have to give their voucher for it to a friend. You're then getting business from your current client base while building a new one. Obviously, lawnmower giveaways are a bit pricey, I know...

4. Customer Appreciation: Customers and clients love to feel loved. Why not give them the warm fuzzies by showing you appreciate them? This is could be a party, an open-house, a gift in the mail, a discount, etc. A great way to give yourself some positive coverage.

So these are only a few ideas, but the possibilities are limitless. The bottom line is, if you need to beef up your client base, if you don't have enough work flow, or if you just want to do something a little different, there are lots of options. And I'm sure your clients, both current and prospective, will take notice of your efforts.

Condensed Proposal Format

One thing that I'm not afraid to complain about is writing client proposals. I absolutely loathe the task. I feel there's nothing that takes more energy than trying to capture all of my creative juices and transform them into an essay. Yuck.

I recently found a book called "Selling Graphic Design" by Don Sparkman. There just so happens to be a section purely dedicated to writing proposals. And the best part is, they're not long proposals either! I recommend picking up a copy of this little resource, but I'll supply you with his super simple, short and sweet outline in the mean-time.

1. Capabilities Statement: Don states, "This is your area within the proposal to show why your company is the best suited for this project. It can contain a history of the firm as well as past experience your company has had in managing similar projects."

2. Project Overview: "This part of the proposal contains several key elements that explain to the client what you perceive the scope of work to be, as well as what they will provide... Show some thinking on your part." Don recommends including a background paragraph about the project along with a work requirement section. This section is a "complete description of the project's specifications such as: size, number of pages, etc."

3. Technical Proposal: "The technical proposal is a description of the scope of work from your point of view as well as your insights as to how the project's production process can be improved. This is not a free design consultation. It is meant to show the client that the designer isn't going to approach your project with a cookie-cutter or standardized method."

4. Cost Proposal: As explained in the title, this is the area where a breakdown of costs would occur. While a number may be presented, it should be made clear this number is only an estimate, not to be taken as a price.

Other elements Don says you may want to include are a timeline, a client list, as well as your trade customs or contract.

The Proposal

One of the most overrated pieces of design work, I feel, is the coveted proposal. Sure it's helpful for clients in selecting a designer and their proposed design solution. But how much sense does it make, really?

I have found that the proposal walks a fine line between suggestions and spec work. Let's be frank, a client puts out an RFP because they want to see what a designer envisions for them. Great. But being the visual creatures that designers are, how do we tend to best communicate our visions? Through example graphics, diagrams, sketches, etc. So what's the difference between providing a client with a proposal filled with mini-graphic samples and mock-ups and providing a full-size mock-up piece in itself? Aren't they both versions of spec work in one way or another?

There have been a few clients recently who have come my way and asked for a proposal. While I'm happy to compile my thoughts and professional suggestions for them, I try my best to avoid using designs in the document. Furthermore, it only creates the possibility of plagiarism. There are the few bad apples that would think, "I have your ideas, and how it's supposed to look exactly! What do I need you for now?" Sounds paranoid, I know, but I have to watch out for my business. This can make things tricky.

When I do have to put a proposal together, I choose to include photos of the current client's materials, store, etc. I simply create an editorial out of them, compiling my thoughts on how to improve each scene in the corresponding photo. I don't provide sample design work - the work that I would actually execute had I been handed the job. The format goes something like this:
1. Intro (a brief summary of the problem)
2. Problem(s)
3. My Suggestions
4. Notes/Appendix

Many people suggest including a budget and/or a timeline in this document. But for me, I prefer to be a little more realistic. The client should have told me both of those things before I was requested to submit my proposal. And if they haven't, I know that my ideas better be pretty adaptable, or if insanely necessary, I ask. So that's that. The proposal in a nutshell. :)

Customize Those Christmas Cards

The holidays are rapidly approaching and now is the time that most businesses start passing around those cards for signing. But before you purchase just another card from those online bulk vendors, or pick up a 100-pack at your nearest Sam's Club, try creating something a little unique first. If you intend to make an impression with your holiday greetings, be sure to do it right. The following article by Fred Showker couldn't say it any better.

Successful Holiday Postcards
By Fred Showker

It doesn't take a lot of time, money or effort to create, print and mail a postcard. But when done right, a postcard can be enormously effective. So, it's the perfect vehicle to use in place of a holiday greeting card for your business. Around the holiday season, everyone is busy, and many times your postcard will be seen and enjoyed before the envelopes with traditional cards get opened... if they get opened at all. While you could apply these rules to any postcard promo, we'll assume this will apply to commercial greetings rather than personal.

1. Make your list, and check it twice
Select those people from your client list who bought from you most recently, most often, and who spent the most money. In trade lingo, this is called RFM: Recency, Frequency and Monetary Value. Don't overlook those who may have been out of touch for a while. Everyone likes a greeting.

2. Make it bright
When you look at a well-designed card, there is usually one dominant feature to catch your eye. It could be the headline or the picture, but not both. Something has to dominate. And while it might be tempting to throw in a little starburst that says "look", be careful how you use it. When you emphasize everything, you emphasize nothing. Your image should have a holiday image, but that's not imperative. Just make it fun and eye-catching.

3. Invite them in
You should want to give the recipient a reason to think about you and possibly visit you. That means some incentive. Discounts and sales are among the most common offers because they steer business your way that might otherwise go to competitors. But anyone can have a sale. Make it a private sale only for people on your mailing list and you gain loyalty and sales. If your business thrives on repeat customers, a well-timed reminder is as much customer service as it is a traffic builder. If you want to stay away from commercialism, just decide on a day, and have an open house. Time it for a couple of hours spanning across the end of the business day and invite folks to drop by after work. Have a bowl of holiday punch, and an assortment of cookies, candies, fruits cheeses and breads. It doesn't have to be lavish -- it's the offer that counts.

4. Highlight the Season and the Event
To professional mailers this is the oldest trick in the book: a discount, free gift, rebate, or your holiday open house. So powerful is a good offer that very often it appears in the headline of the letter. Make sure the the date, time and address is included. Time and again, its been proven that more people respond to an offer when there is a specific time involved.

5. Give'em a Push, and a Way Out
You got the readers attention and guided them through enough information. You aroused their interest and desire. Now you have to let your readers know the important details. Make it easy on the eye, but hard to ignore. Tell people what you want them to do. If they can't make it, be sure to offer a counter-invitation. "If you can't make it, feel free to call or stop by any time, we'd love to see you. Make sure your contact information is clear.

6. Follow the Trail, Follow Up
A postcard can also be a method of response. It can take the form of a coupon, a gift certificate, or a ticket to an event. Ask people to present the coupon to take advantage of an offer or "special gift". Counting coupons helps you measure the effectiveness of your promotions. That way you can better understand what worked, and who came. Don't forget their address will be on the card, making it easy to follow up after the holidays with a "thanks for coming" reply. A nice way to extend the promotion over into January.

7. Give Guests and Printers Time
The old saying, speed-quality-price, pick any two, is equally true in the printing business. If you re working with a printing company, give the finished piece to your printer well before you plan to mail it. This will give the printer time to do the job right and may save you money on rush charges. You want the post card to be in the recipients hands at least two weeks from your event. So start with that target date and work backwards with your printer for a press date.

8. Change the size and shape to stand out
If you've always sent the same 4" x 6" postcard and its always gotten respectable results -- why not try something different? Test a 6" x 9," and see if it catches people off guard and sticks out from the bunch. You can also try custom shapes. A real estate agent might try a postcard in the shape of a house. A moving company could try a postcard in the shape of a truck. The USPS is now allowing this new form of postcard marketing.

9. Make it Picture Perfect
Proof and Proofread before printing -- when everything is together and are ready to print, proofread it again. Then ask someone else to go over it. Don't forget to proofread those things you see all the time, like your name, address and phone number. After all, you don't want to go to the expense of printing something that you cant use because of a mistake.

10. Make it Memorable
Scour your stock photography archives, or other clip services you may subscribe to. It may even be worth purchasing a stock photo CD to find just the right picture to go with your message. If you've got the knack, make a digital photo of something your target audience will be familiar with. Or, photograph you and your staff, then modify the image in Photoshop... put your staff's faces on 8 tiny reign deer; put your face on the Grinch; put everyone's faces on a row of snow men! There are lots of great ideas that will be wonderful attention getters, and perhaps even a card the customer will want to keep. Above all, make it fun, inviting, and cordial. Your client will think kindly of it, and you'll have the opportunity to make that all-important client contact once again.

Dealing With Competition

Competition, in my mind, is always a good thing. It pushes us along and keeps us on our toes. Being in a suburb of the Twin Cities, the market I live in is currently saturated with graphic/website design firms, agencies, and freelancers. So how does a person make their mark while so many others are trying to do the same thing?

In my experience, there are a few tricks that I've found to be helpful. First and foremost is style. The way that I design and the look of my product is very unique. My love for vintage-style work and retro graphics sets me apart right away from other designers. While this look may appeal to some prospective clients, it could also turn a few away. The nice thing is that people who approach my business have usually already checked out my site. They know the type of work that I do and they tend to already have a sense of who I am as a designer. My work samples and promotional materials attract a certain audience, and I appreciate this because I know I won't be forced to design in a style that doesn't fit my personality or my business.

The second thing is exposure. By creating brochures and keeping them sprinkled throughout my town, entering contests for design, and by often attending networking groups, people can put a visual to my business name. When they hear or see "13thirtyone Design," I want them to be able to know myself or know my work. This way, I won't blend in with the "yellow page" designers.


Finally, and unfortunately, is the daunting task of researching the market. As said before, the area in which I live is completely congested with designers. While I am a member of my local area Chamber of Commerce and Professional Women's Network, I also try my best to pick up clients in other cities. Lately, I've been working with some new clients from La Crosse, Wisconsin. This is great for me because the area is looking for a new designer's style. Furthermore, I know my competition isn't really looking for work there.

Co-existing with the competition can be a little tricky. But it doesn't have to be a bad thing. It only pushes me, personally and professionally, to grow in different directions, ones that aren't as obvious at first glance.

Good Manners Equals Good Business

The century-old rule of "treat people how you want to be treated" has time and time again proven its truth to me. In an earlier post, I once talked about how showing people that you're thinking of them and dropping a client a nice note is a better way to market than to send out mass postcards or emails (see post title "That Fuzzy Feeling" from August). In truth, I started writing these little "thinking of you" notes because I received one personally from someone I was doing business with. And it made me feel reassurred that I had chosen right company.

Recently, I ran into a client situation where good manners and courtesy came through for me again. I had been working on an account with a client and was sure to treat them as I do all my other accounts: with prompt responses, efficient work paces and thorough communication. Without much warning, another designer had offered a proposal for the project I had already been hired for, and had been working on for about 8 weeks. Confused about the new possible direction, versus the current one I was working on, the client wanted to think about which designer they'd like to continue to work with.

While some designers may have become frustrated and impatient, I told myself to empathize with my client. To let them know that I was surely there for them if they wanted my help and that I would continue to do my best to offer them prompt communication and quality work, should they choose to stay with me. Being a graphic designer, we are often critisized for having egos and thinkig our work is always the better than the next artist's. I wanted to avoid this stereotype as best as possible and continued to tell my client that while I offered them a solution that I thought worked best for their current objectives, we could definitely work together and discuss a new approach to take. I wanted them to be happy and satisfied with not only the design they were choosing, but with the designer as well. Sure enough, my empathy for the client helped me out. The client chose to stay with me, I was sure to say thank you for their continued busienss, and we've moved on to the next phase of the project.

By no means is this post to display the client in a poor light. It is simply one of many examples when good manners, courtesy, and understanding can get you through a rough patch with an account. In all truthfulness, and not to sound corny, I truly feel that the client relationship is stronger and healtheir for having communicated to openly and effectively.

Season's Greetings?

I've already seen advertisements for business-to-client Christmas cards. Are people really ordering their Christmas cards already?! This got me thinking...

In regards to my most recent post, "The Art of Self-Promotion," I talked about being different and trying to seperate yourself or your business from the crowd. What better opportunity than to not send a Christmas Card? Why not a Happy New Year's card? Or even some cheesy play off of Valentine's Day like, "we love our clients?"

How great would it be if your company's card was not only opened, but actually read? With the masses of cards we all get in the mail from the middle to the end of December, it makes sense that we would want to do something different. Afterall, the whole reason these cards are sent in the first place is to remind our clients about us and to wish them well. Why not wish them well when no one else is?

The Art of Self Promotion

"It's not what you know, it's who you know." We've all heard this little phrase time and time again. But in the business world, how will those people know us enough to remember us if we don't stand apart from the crowd?

Whether we're trying to communicate to current or prospective clients, constant self-promotion is a must. This doesn't mean Xeroxing 500 fliers at your local copy shop and then slapping them up around town on billboards. It means taking your individuality and reinforcing your brand's image on postcards, ads and in newspapers. By creating promotional materials that are consistent with your brand identity, your repeated efforts will surely gain clients' attention.

Everyday our mailboxes are packed full (at work and at home) with direct mail pieces. Sadly, many go straight to the trash and marketing dollars have gone to waste. So how can we promote our business while staying unique enough to be noticed? Here a few ideas:

Idea Box: We all have old ideas for promoting ourselves that we didn't have time to put into motion before. These are marketing opportunities waiting to happen!

Creative and Unique Postcards: Think about sending a strangely shaped piece of direct mail. Or what about a 3-dimensional object? Anything different and unusual is good because you'll surely be seen amongst the junk mail.

Photography: People are visual creatures and they need stuff to look at. If your brochures and communication materials are filled with sentence after sentence, consider investing in some stock photography to liven things up a bit.

Logo Consistency: If your company has five different logos, drop four of them. It takes 3-4 times of staring at your business before a person will remember it. No reason to throw extra logos at them!

Thank You Stationery: I, too, feel that often I don't have time to jot down a hand-written thank you. But imagine a colleague or client's surprise at receiving a nicely, custom designed note card. The handwritten address on the envelope is enough alone to get a person's attention. Plus, people always appreciate the five minutes you're willing to dedicate to them.

Be Yourself: The great thing about people watching is that everyone looks completely different! Businesses are the same way. Bring this individuality out in your company. Don't be afraid to look different and use graphics out of the ordinary - people will remember you more for it!

Cold Emailing vs. Cold Calling?

Unfortunately, times can get slow for all of us. This morning I was reading a short blurb from HOW Design magazine discussing a design firm who regularly uses cold emailing instead of cold calling. Read blurb below:

Peleg Top, of Top Design Studio, finds Web and email addresses for his prospects in trade publications. "Cold email marketing works better than cold calling on the phone," says Top. "It enables the prospect to respond without a confrontation." Top tells of sending an email message to a prospect at a record company that he wanted to work with. "A day later she responded with a positive response, and we're now going through the introductory mode."

Each time writer and photojournalist Jed Block does email marketing, he gets at least one job as a direct result. "And a job that I probably wouldn't have gotten otherwise," he adds. That's what happened when he sent a warm message to Mary Kramer of K&G Tax Consultants—warm, because Block is a client of the firm.

Hey, Mary:
I just updated my Web site and thought you'd be interested in an exercise that appears under "Current Piece of Work." If you haven't visited for a while, I invite you to look around the site. It's not all business—most of the time, I try to have a little fun.
This is a onetime mailing that I thought might interest you. If you'd like to stay in touch, the site makes it easy for you. And please don't hesitate to contact me if I could ever help out.
Thanks,
Jed Block,
who writes for businesses and people wanting to communicate clear, stimulating, professional information with others.
http://www.jedblock.com

"What grabbed me was that all his message did was introduce his Web site," says Kramer. "It wasn't a big pressure thing. We had been thinking about doing a Web site for a year, so we were looking for help. When I got the message, I looked at his site, which was really creative. Plus, he was local." Since then, Block has worked on their brochures and a few small mailings, as well as their Web site.

I really like this type of marketing. I feel that these days, companies can come across as being not very genuine. In a recent post I discussed that a great reminder to your clients about your company is to simply send a quick note, sort of "thinking of you" in feeling. I truly believe that if you let it be known that you put forth a little bit of effort, people will respond.

That Fuzzy Feeling

A few months back, a prospective client had come to me with a need for some design help. During our first meeting, she was explaining to me the values of her start-up and how passionate she was about it. Her business was selling hand-made jewelry. This jewelry is not your average looking, homemade stuff. It's very high quality and well crafted. I love it so much that I literally bought a necklance right off of her neck once.

The other night I was out with some friends and wore the necklace. I received compliments on it like crazy! Of course, being a small business owner myself, I was sure to give her credit and offer contact information. Yesterday, I decided I'd let her know just how much praise this necklace had received. I felt really good about the gesture, as I'm sure all business owners love to hear when someone truly appreciates their product.

But then I was thinking about it - instead of spending a chunk of change on postcards or an email marketing subscription, why not use a genuine note or two to keep in touch with past clients? I certainly wasn't trying to sell anything. I wasn't offering a "tip" or "trick" that someone didn't really want to hear. I simply passed along a nice note and tried to make a person feel good. I think that's much more effective marketing of myself and my business...and it's free.

did you know?

One of the services that 13thirtyone Design offers is wedding invitations. What's funny is that some people are amazed at how complex and customized the invitations really are. These invitations aren't your average white ribbon on white paper ones. I try really hard to embody the personality and tone of each couple into their invites. What's great about offering this service is the true appreciation and meaning that comes from working with these clients.

a logo is worth a thousand words.

So yesterday I had to give a little presentation to my fellow Chamber of Commerce members in our Leads Group. Every week one member takes about 20 minutes or so to talk about their business, their services and what a good referral would be. This helps the other group members to understand what exactly they're referring.

I have to be honest and say that I did run through my "speech" about 10 times in my head. As the newest member of this group, I felt it was best if I kept my lecture to a short and sweet overview of who I am and what 13thirtyone is all about. I quickly blabbed about my educational history and my work experience before starting my business. I then introduced the services I offer by bringing up how important it is to have a consistent and credible looking logo and overall brand. I thought I might expand on that point a little bit as, again, I only had 20 minutes yesterday.

Today there are so many companies fighting for the same consumer. Mom and pop shops and large corporations alike all want the same person to buy their product/service. While there are still some people out there who try to support start-up companies as much as possible, the average consumer tends to buy from the most credible source. Does this mean you have to have a huge office and an amazing budget and print four color ads twice weekly? No. However, if said consumer has to pick between a huge store with a cool and trendy vibe that's well known versus a small company with a great customer service repuation, but with poor visual appeal, who do you think looks more credible? The big guys.

I have met so many amazing people since starting 13thirtyone. My fellow small business owners are smart, timely and appreciate every sale they make and every inquiry they receive. I truly feel that they value the customer whole-heartedly and will try their best to make that customer happy. Sadly, I don't think these values are enough to attract new clientel. It only makes sense that you should have an image/logo/identity that also shows how great you and your company are. Offer the new customer an amazing package - not only you and your business, but a great looking product!

We live in time where looks do matter - a lot, unfortunately. I by no means am suggesting to "sell yourself out" or to not hold true to who you and your business are. However, if you can take your personality and incorporate it with a really cool identity, I think it will speak more than a thousand words on behalf of your company.

Pricing Design

The other day I had a very interesting conversation with a fellow small business owner. As we were chatting, she made a point that was so short and sweet, I haven't been able to get it out of my head since. She said, "You should never feel guilty about the price that you charge. If you feel you are providing a quality service, and that it has value, then you should probably be charging even higher than what you already are."

There are so many books and articles about pricing graphic and website design. The concept is pretty simple: figure out how much money you'd like to make in a year as a freelance designer and calculate that down to the hour. For every project or service you provide, multiply that rate by the estimated number of hours it takes for you to complete that job (visit creative latitude's salary calculator at http://www.creativelatitude.com/neils_newbies/neils_newbies_0206.html).

It sounds so simple. But why do some clients take such offense to pricing? Is it not pricing in general, but just the particular service they're paying for? Do they think graphic design is not worthy of paying the price for a professional?

I've had clients make me write a detailed report of every minute and what I was doing during that time. They wanted to see if I was upcharging them for no reason, or if I could really account for all of the time I had proposed in my estimate. I feel like this scheme is almost a backwards way of making a designer feel guilty for charging a professional rate, if a rate at all.

There will always be clients who are just in it to get something for nothing. I've learned that in these situations, it's not worth my time and to close the door on that opportunity. By doing work for less than you know it's worth, it becomes a discredit to yourself and to the profession. For more passionate words on the subject, visit www.no-spec.com.

Being the Salesman

One of the hardest things about being a small business owner is the need to be your own salesman. I think what makes this aspect of the work so intimidating is "moneytalk". Have you ever had a great conversation with someone whether it be a colleague, customer or client, or even a friend, and as soon as payment comes into the conversation, the person becomes more rigid and very serious? Very seldom do I have a sales conversation with someone that is filled with light-hearted chit-chat during numbers-speak. I'm finding that by remaining as open and as casual as possible, people tend to be a bit more receptive. But are there any other tricks that might help? How do you handle sales tension?

The other thing I've learned not too long ago, is that no matter how much you advertise or no matter how great the deal, people won't bite unless they truly want or need too. Sounds like common sense doesn't it?

As one of my business goals, I try to take on one pro-bono client per year, so I can do my part and give back. A perfect candidate would be an organization that's heavly involved in the community, an interest that I might share, or a cause that I very much believe in. I called one such candidate one day (who's website was in need of an upgrade) and offered a free website re-design to them. All that was in it for me was community involvement and to get a little exposure. I thought for sure the spokesperson for the organization would say yes - how could anyone turn down a free website by a professional? My forecasted problems only included wanting too many free services, and wanting it completed too fast. I was wrong.

The person I spoke with became very angry and accussed my of hating her website she had worked so hard to create. As I am a professional, I hope you assume I would say nothing of the sort. I quickly scrambled to tell her I, by no means, hated her website. That, again, I was simply looking to help a cause I believed in by offering my craft and, if all went well, gain a little exposure in the area. Needless to say, I had a bad taste in my mouth after the conversation was over.

This is how I learned that even if something comes free, a person will not take it if they don't want it. That I shouldn't waste my time trying to sell people on something they're not looking to buy - I shouldn't waste time trying to change someone's mind. Maybe it's not so common sense after all.