Last week I made the case for offsite design. Today lets consider pricing.
While specific numbers cannot necessarily be discussed, we can get close to the target generally. Let’s start with the setup fee.
In another blog post we discussed the reasoning behind the setup fee. Feel free to stop and refer back to that. Below I’ll walk through our 2019 pricing.
In the non-peak months starting in October through the end of March, we charge a $1,500.00 setup fee. There is typically less demand on our time and we want to incentivize a proactive approach by Component Manufacturers (CM’s) to get setup before the peak period. All of the preliminary work, testing, and feedback is completed before full workflow. This is best for every party involved.
In the peak months starting in April through the end of September, we charge a $2,500.00 setup fee. Demand for our service is higher with existing customers and we prioritize them first. Starting setup at peak time when both the CM and we have less availability for collaboration and feedback is very difficult and expectations need to be tailored accordingly.
Our fees are competitive with what you might pay an in-house designer (keep in mind that on top of salary you are also typically paying all of the associated fees like health care, benefits, head hunter fees, training, etc.).
We also have the benefit of being able to scale to our customer’s needs. We may have one designer on your account one week and five designers the next. Your pricing remains the same as it is based on the designed board footage (per the MBA report).
We provide two board footage rates as well as an hourly rate:
- Design fee BIDS = $0.0X * / board foot (per MBA report)
- Design fee PRODUCTION = $0.0X * / board foot (per MBA report)
- An hourly rate for REVISIONS and Misc. Design = $X0.00 / hour
We also recognize that sometimes the board footage rate doesn’t make sense and the time put into the job is either very low or very high depending on the difficulty. E.g. let’s say our base rate is $.05 / BF on a simple gable truss job with 2 designs and 100 trusses that is 10,000 board feet and took one hour to design, we will look at all of our inputs and then, in this case, reduce the invoice sum to a reasonable amount. So, .05 x 10,000 is $500.00. That’s a little much for one hours worth of work (if you don’t think so, please schedule a consultation immediately!).
However, if the job took 11-16 hours, the rate would be more applicable.
More difficult jobs will receive an upcharge. In my experience, however, I would say this only applies to 10% of design work.
WHAT GETS DONE?
This is a great question and at the end of the day, this is the crux of the matter. What value do we provide to a CM? Our value revolves around our ability to provide a qualitative, accurate, and timely design service. As a baseline, a CM could expect us to deliver 50,000 board feet a week in designs.
What do you have to lose? Reach out today and schedule a FREE CONSULTATION with us and in preparation we will send you our typical pricing and setup checklist and documents!