March 30, 2011 by John Dickinson | 2,149 views | Comments (16)
We can all learn from each other, and we’d love you to share your experience, ideas and expertise in the comments. Read the scenario below and share with us how you would handle it, your ideas and experiences, either good or bad. It’s okay if you don’t know what you would do, we’d love to know that too.
Scenario 1: Unbudgeted Changes
You deliver a project to Jane, your client, but she then asks for changes which have not been budgeted for. What would you do?
Get the Flash Player to see this player.
For free business tips with Robin Dickinson, watch BLACK CHAIR Business Success TV.
16 Responses to this post
March 30, 2011 at 8:57 am |
Throughout the entire editorial process it’s important to communicate with your clients and get them to sign off at each stage of the project’s development. For instance, during the preproduction storyboard stage, the client should sign off so it’s clear what direction the project is going to go in and likewise, at every other stage thereafter. This will eliminate any confusion as to what will appear in the final project and what new changes will have to be accounted for if the client decides they would like to make major changes that could potentially cause an overhaul of the entire project.
The bottom line is getting the client to sign off and agree on each stage of development.
March 30, 2011 at 9:00 am |
I’d inform the client of my hourly rate and get email confirmation of each change she wants. That’s always worked for me in the past, and if I did ever have to pursue collection of a debt, I’d have a detailed record of what was required. Even changes discussed over the phone I’ll always ask to be confirmed by email.
Although I’d never allow unbudgeted changes if I hadn’t done work for the client before.
March 30, 2011 at 9:37 am |
When I started to have clients on my own, I use to price my service just as it should, but later i had to learn that In the Dominican Republic, we always have to price things even in a 300% more of the original cost to cover all those unbugeted changes plus the descount people always request after close the deal.
March 30, 2011 at 9:56 am |
As an independent, I am only as good as my reputation for quality deliverables and quality relationships with my clients. If i deliver a project within budget (knowing that I’ve budgeted my time to make money on the project) and the client is a good one to hold on to, I nudge them with a little guilt (for some return business in the future) and take on the changes to the best of my ability and timing.
If the situation involved a talent callback or reshoot, then the money definitely has to be found by client but all in all client feels taken care of, I feel good for return business.
cheers
March 30, 2011 at 12:41 pm |
This scenario is so vague it is hard to determine what I would do. I try to work with a client getting input and feedback throughout the project. Keeping them informed as to how things are progressing and having them signoff when parts of the projects are completed. This way they are part of the process throughout and there is less chance that this scenario arises.
To get to the question, what is the size of the changes? If there are just tweaks than I feel that my pricing would include those anyway. If it would involve reshooting, rescheduling or a complete change in the way the project was going than we would sit down and talk out what the new project looked like and additional costs that would be involved in getting there.
March 30, 2011 at 1:53 pm |
When it comes to modifications that have not been accounted for initially, the best thing to do is to take step back and evaluate what the next step should be, depending on the client. At the end of the day, client satisfaction is key so if it isn’t going to cost you, especially out of pocket, (whether your a freelancer or work for a company) most of the time you should go the extra mile. As a creative there exists a constant hunger to excel and outdo past work so look at situations, like this one in particular, as a learning experience. This kind of mind state will help shift production in the right direction with the right results. Again, stress the fact that it vastly depends on your client. If there are worth it, previous arrangements aside, go for it. Remember these types of workarounds, etc., will always have a lesson to teach for the next project. Most importantly, it’s simply a great way to brand your work and work ethic. Without clients creative work has no monetary value and in the world of business we all know reputation is everything.
March 30, 2011 at 7:21 pm |
I think clients are in the paying position and suppose that (minor) changes can be done by the way or as a favour. That in fact is imaginable either for a really good client or a person that might come up with bigger projects in the future. But as discounts or free changes get out of hand you have to rethink the relationship with the client in terms of give and take.
March 30, 2011 at 9:41 pm |
I always found this a little tricky but now have a technique that seems to work.
Firstly, I let the client know that these changes technically fall outside the scope of the work.
I weigh up the cost to me to implement the change and, as a general rule, if its less than my ‘pain threshold’ then I’ll make the change free of charge. But .. I’ll be sure to let the client know that this change was made free of charge and only because it was a minor change and, hey, let’s give you exactly what you want. I’ll also show it as a line item on the invoice with a big ‘FREE’ next to it.
If the change is going to be above my pain threshold .. ie when it’s going to impact on other commitments, my wallet, or when the client is actually just being painful to deal with, then I let them know that those changes fall outside of scope and I will be charging at my standard rate with a minimum charge of at least 1 hour.
For me, the key thing is just to be upfront and if it’s a time based project then let them know that time is money.
March 30, 2011 at 11:10 pm |
Well put Mr.Shigleton…
March 31, 2011 at 3:25 am |
That’s an excellent idea. I’m smacking myself around for not thinking of that myself. A Huge FREE line item on their next invoice would be fantastic. As Robin Dickinson would say “it shows your client, that you know how to speak commercially.”
March 31, 2011 at 4:31 am |
Well put dude
March 30, 2011 at 11:06 pm |
I believe Mark hit the nail on the head there – definitely an approach that I make. It would seem to be the most balanced between keeping clients happy and making sure the work is charged accordingly.
Communication is vital.
March 30, 2011 at 11:27 pm |
Well, if you charge per hours or per day, just charge her the time you was doing that changes.
You allways have to discuss this option with the client before start a project.
March 31, 2011 at 3:56 am |
I notice that even posting this right after the “what should I charge” episode that people are reluctant to state their hourly rate or fees when discussing them here. I think fees should be more openly shared with people in our field. Hourly rates or people sharing per project rates and showing the project.
Why do I feel this would strengthen our industry? For starters the more our rates are out there in the open the less a client would try to lowball and undermine our skills and talents. Beginners ( new to the industry, but with skills ) would see going rates and make a choice to charge as much as someone charging higher if they feel they could deliver the same quality work. This way the value of our art isn’t brought down through the large amount of people undercharging their talent.
As for this topic, I also break my projects into phases and have client sign off after each phase is approved. I try to make each project break down into 4 phases. This way, as Jim noted above, you get approval before moving forward. If afterwards they come back and request a change on something they have signed off on then its a per/hr bill.
My process,
Phase 1 – Create a few different style frames of different possible looks. 3 different looks usually
25% of agreed total
Phase 2 – Based on style picked, move on to detailed boards for all key moments in project
25% payment
Phase 3 – Animate borads once approved
25% payment
Phase 4 – deliver final
collect last 25% + service taxes
As for rates, I’m one of those many that are very new to this industry. I’ve only had 2 paying jobs so far. But for those 2 I’ll share my info and anyone feel free to check them out and let me know if you think I over priced / under priced / hit the mark , as for photography I’ve been doing that for years so can happily share rates there if anyone would like to know.
http://www.ryanhamilton.ca
Lac Saint Sixte (kids jumping) – $6400 CAD – did creative/animation, 39days, lots of changes before client signed off for each paragraph of narrative
Gordon Group Reel – $2250 – creative/animation, 10 days start-finish. Client said here is our work examples, come back when you have an edited piece. No changes and they dug it.
March 31, 2011 at 2:56 pm |
Hi Hamilton,
FYI my standard hourly rate is $90 NZD.
I’m mostly a web frontend developer who has a keen interest in mograph / ae and c4d .. but have done very little chargeable work in that area.
Cheers
November 27, 2012 at 11:38 am |
Hi Hamilton, love your work. However in my opinion $6400 is too little for the Lac Saint Sixte job. Especially if you put that amount of time into it.
Trackbacks