positioning, proposals & pricing

Business Bootcamp:Business Bootcamp:Positioning, g,

Proposals & PricingWith Ilise Benun and guestswww.marketing-mentor.com

We helpWe helpcreative professionals

(i h d t)(in-house and out)promote and price their work.p p

Ilise Benun• My positioning:

I specialize in business

Ilise Benun

I specialize in business issues for creative professionals.

• Full-time mentor

• Lots of presentations/workshopspresentations/workshops

• Author of 7 books

www.creativeguidetomoney.comwww.marketing-pricing-guide.com

Wh d h Who are you and why are you here?are you here?

Wh t i it b t What is it about interactive projects?interactive projects?

They are:They are:

• More complex• More technicalMore technical• More difficult to scope out• More challenging to priceMore challenging to price• More prone to scope creep• What else?What else?

In houseIn-houseVsVs.

OutsourcedOutsourced

In-house survey: ResourcingIn-house survey: ResourcingWho do your internal clients always turn to for creative

projects?projects?They are required to come to use to get it done (even if we have to seek outside assistance)

W h t id

22.2%

11.1%We have an outside agency/design studio of record this gets bid to first

They can source the work

61.1%

5.6%

22.2% yanywhere they want (we compete against freelancers, outside agencies, and consultantsOther (please specify)

Part 1:Part 1:PositioningPositioning

h blThe problem:Cli d ’ Clients don’t

d t d understand and/or al e and/or value your servicesyour services.

h lThe solution:Cli b Clients must be

d th t assured that you nderstand their understand their specific needsspecific needs.

Positioning = clarityPositioning clarity• what you offer y• for whom• how you’re differenty

Big ideasBig ideas

Wh t i th ti ? What is the perception? • Blurry or clear? General or specific?

O d t k t t i t ?• Order-taker or strategic partner?• Specialist at anything?

K l d f t h l ?• Knowledge of technology?

A B C D“Fill In The Blank”imagination and business innovation exposes, strategizes and creates

“Fill In The Blank” is an award-winning, strategic design firm specializingi b di d t

“Fill In The Blank” is a digital design and interactive product d l t

A B C DWe deliver big ideas and even biggerstrategizes, and creates

ideas, products, and partnerships, delivering innovative design with aspirational intensity. A

in branding and corporate communications across all media.

Since 1984, we’ve helped

development company based in New York City.

We create beautiful, useful, and unique

even bigger results with more agility and efficiency than larger N Y kmulti-platform innovation

studio known for its dimensional design process that transforms the smallest idea into the

, pleading companies around the worlddo one thing exceptionally well: build powerful brands that

, qcontent-driven products across digital and traditional platforms. We're passionate about helping our clients

New York digital agencies. We succeed because the smallest idea into the

largest deliverable, XXX has powered start-ups in various industries from telecommunications,

ft d t il t

powerful brands that grow their business.

helping our clients achieve their business objectives, while meeting the highest standards of interaction design and

we're good, not because we're big.

software, and retail to Fortune 500 companies nationwide since 2003.

production.

In-house survey: PositioningIn-house survey: PositioningHow do your internal clients perceive you?

11 8%11 8%

As a production shop - a non-creative resource that just executes their ideas

11.8%

17.6%

11.8%As strategic partners - people who understand the brand and can collaborate on big picture marketing ideas and technology solutionsAs technology specialists

58.8%

As technology specialists -collaborators who are up to date on the latest technology and can suggest new solutions

Other (please specify)

Positioning toolsPositioning tools

• Positioning Statement Positioning Statement • Your name (firm or department)• Your titles Your titles • Your tagline• Your Twitter handleYour Twitter handle• The name of anything you publish

Your Positioning gStatementState e t

It’s for you -- for internal usage only.

Its purpose is to define for yourselves -- to yourselves --what you stand for and what makes you stand out. y y

WorksheetWorksheet1. Whom are you best equipped to serve?y q pp2. What challenges do they face?3. What do they love about you?y y

Sample Positioning Statement

We partner with clients to create strategic design solutions for 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, 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.

Interactive Sample Positioning Statement

We partner with clients big & small, synthesizing information about the consumer, the company needs, the product implementation and execution 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 problems and designing products is a rewarding, learning-based process (and is fun!).

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.

Reinforce your positioningReinforce 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 strategic thinking and knowledge of technology

Show your team’s valueShow your team s value

• In person: Show off a recent piece of high-In person: Show off a recent piece of highquality work (in a leadership or networking meeting ) • Online: Build a portfolio website or capabilities brochure and drive traffic to the site.

Vi il i l di Sh l d/ • Via email + social media: Show samples and/or case studies (in another department's staff meeting or ) meeting or ….)

Part 2:Part 2:ProposalsProposals

The problem:The problem:The client doesn’t The client doesn t

know what they need.know what they need.

Th They say….

We need a web site.

In-house survey: ProposalsIn-house survey: ProposalsWhen estimating a project for internal clients, do you:

Provide details verbally?Prepare a simple estimate?

35.3%

17.6% Prepare a detailed proposal?Other (please specify)

17.6%

29.4%

You need to know (or find out):You need to know (or find out):

• Your hourly rate. Ho long it takes to do the ork• How long it takes to do the work.

• Your overhead, mark up and profitYour client’s budget range• Your client s budget range

• How important price is to your client

Best practices for proposalsBest practices for proposals

• Qualify first (whenever possible)Qualify first (whenever possible)• Ask smart questions (for positioning)• Simple estimate or multi-pg document?Simple estimate or multi pg. document?• Focus on the prospect’s needs• Show relevant samplesShow relevant samples• Present it in person (whenever possible)

Types of proposalsTypes of proposals

1. Simple one-page agreement1. Simple one page agreement2. Basic estimate (2-3 pgs)3. Medium (3-10 pgs)3. Medium (3 10 pgs)4. Large (10+ pgs)

P l iProposal review

C #Cameo #1

Erin Pheil• Degrees in Psychology + Digital Media

• Started timeforcake in 2002.

Erin Pheil

• Thought I was a designer.

• Made lots of mistakes.

• Slowly realized I was passionate aboutSlowly realized I was passionate aboutthe bigger picture & proving results.

• Now focused on making meaningfuldifferences—and proving it.differences and proving it.

Also…

All i t • Allergic to cane sugar

• Is mountain biking or snowboarding if not at her computer.

Website BlueprintWebsite Blueprint

What is the Website Blueprint?

Website Blueprint: BenefitsWebsite Blueprint: BenefitsThe Client…

• gets to see how you work• eliminates uncertainty & guesswork from the selection process• is empowered to make a more informed choice k b tt f th i ti d b d t• makes better use of their time and budget

• reduces risk (they don’t have to commit to an entire project)

YouYou…• get paid for your hard work + expertise• have the opportunity to learn how the client works• become a trusted authority/partner during the process become a trusted authority/partner during the process• can feel confident you’re giving the client what’s best for them

Website Blueprint: ContentsWebsite Blueprint: Contents

Always start out with:

• Overview of Client + Site

• Client’s Primary Online + Overall Business Goals Client s Primary Online + Overall Business Goals

• Biggest Challenges Faced + Proposed Solutions

Website Blueprint: ContentsWebsite Blueprint: ContentsAlso included…

• Sitemap• Functionality flowcharts (if applicable)• User profiles• List of specific feature requests• Technology recommendations Technology recommendations• Punchlist of all work required• Master list of deliverables Considerations for future• Considerations for future

• Pricing

Part 3:Part 3:PricingPricing

Th blThe problem:Th ’t h t They won’t pay what

o need to chargeyou need to charge

In-house survey: PricingIn-house survey: PricingWhen doing a web site (or other interactive project) for internal clients do you:internal clients, do you:

Tell them how much it will cost?

11.8%

5.9%

cost?

Have to fit within their budget?

29.4%

52.9%

Have a chargeback system in place so they know the value of what they're buying?

Money/price isn't part of the conversation.conversation.

Are you talking to the wrong people?Are you talking to the wrong people?

Show Your Value/ProcessShow Your Value/Process

Absence blindnessAbsence 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.

www.accidentalcreative.com/podcasts

Pricing strategiesPricing strategies

• Time-based (when necessary)( y)• Project-based (best for everyone)• Package-based (for structure)g ( )• Retainers (for cash flow)

Standard pricing memoStandard pricing memo

• Actuals from past 5 comparable jobsActuals from past 5 comparable jobs

• Averages

• Adjust for oddities

Process / ballparksProcess / ballparks

• Diagnostic/phase 1 (10k or 20k)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)Website (60k to 150k)

• Implementation (tbd- scope or pass)

O i i d dOur pricing depends on:

• Accurate time-tracking• Past actuals informing estimates• Past actuals informing estimates• A clear scope of work > contract• Fixed, inflexible hourly rates• Transparency with clients about money

Daily, accurate time-tracking by all staff, freelancers

Past actuals

C #Cameo #2

What’s your top takeaway?What s your top takeaway?

• Positioning?g• Proposals?• Pricing? g• Other?

That’s it Questions?That s it. Questions?

Resources

Special offer on Designer’s Designer s Proposal BundleBundle$20 off withpromo codepromo code“SAVE20”

www.proposalbundle.com

The 13th Edition Graphic Artists Guild Handbook: P i i & Ethi l G id liPricing & Ethical Guidelines

http://www.graphicartistsguild.org/handbook/

Free tipsFree tips

Free sessionFree session

Contact meilise@marketing-mentor.com

(201) 653-0783

Contact me

Blogs:www.marketing-mentor.comwww.marketingmixblog.comg g

www.creativefreelancerblog.com

Podcasts: http://marketingmentor.libsyn.com/

Twitter: http://twitter.com/MMToolbox

Facebook: http://www facebook com/pages/MarketingFacebook: http://www.facebook.com/pages/Marketing-Mentor/178441188839486