Question

Topic: Strategy

Pricing Norm When Client Requests Source Files?

Posted bypghpromoon10/26/2006 at 2:57 PM ET 125 Points
Hello--This is a pricing question that deals with ownership rights, work-for-hire, or something like that.

I'm an independent contractor working with a client to upgrade an existing tri-panel brochure. Currently tracking my time so as to charge an hourly rate for consultation and redesign/rewrite; then I will charge a project rate for the actual creation of new brochure file. While I will probably be building the brochure in a layer program like Adobe Illustrator or Quark, my deliverable is to be the 300dpi JPG file that client will submit to their own print vendor. I am almost certain this client will also want my editable source file(s) so they can make changes themselves in the future and resubmit new JPG files without having to come back to me every time.

So what is standard approach to pricing in these cases? Is it routine to provide editable source files to clients and, if so, should I be charging more for relinquishing all of those files? If I am to charge more, what is the norm for calculating a value?

My meager understanding is that work-for-hire has to be specified up front, but I don't think "work-for-hire" applies to collaborative visual media projects, does it? Regardless, there is no written contract with this project, just a budget figure. Plus, I'm already into some time on this project, with first draft having been reviewed by client today, so any opportunity to define a pricing structure "up front" is no longer available here. But I am wanting to be more knowledgeable of industry norms should the question arise during final approval.

Thanks in advance for sharing your 2 cents.
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RESPONSES

  • Posted byHarry Hallmanon10/26/2006 at 3:20 PM Member
    As Ahunt said the files belong to the client. If you create a hard line with this you very well may find yourself with no clients, as many photographers have over the last ten years.
  • Posted bypghpromoon10/26/2006 at 4:01 PM Author
    This is enlightening so far, thanks!

    Follow-up for Steven, who says:
    "So why not turn a negative (for you) into a positive and look at ways to provide added value to the customer after the fact (ie: more billable hours for you). That could possibly mean by more clearly defining when and where your work ends for this budget and where additional costs need to be added in."

    Maybe I haven't had enough coffee yet today, but I am having a difficult time comprehending what you are suggesting--possibly added value in subsequent follow-up projects? Could you please elaborate?
  • Posted on10/26/2006 at 5:19 PM Accepted
    I have been in the advertising and graphic design industry for 16 years. During this time, I have never seen a designer/agency successfully charge "extra" for the source files. The budget you are working within should include all your work including all final files. After you have completed the project, you should clearly communicate to the client how you will provide them with the final source files, how long you will hold onto your own copy of these source files, and how much it will cost (if anything) to un-archive, burn them to a CD, and ship.
  • Posted bypghpromoon10/27/2006 at 11:11 AM Author
    Thanks for all this fantastic input, everyone! Obviously, I've rarely been faced with this situation. However, everything makes sense as you talk about using the source files as a means to establish a trust relationship with a client.

    Some of you have indicated that I should regularly "build in the cost of source files" when I provide an initial estimate. Is such a built-in amount intended to cover time & expenses of burning & mailing files, for instance? Or is it to be calculated with some kind of "formula" meant to compensate somewhat for loss of potential revenue? Obviously, this is new to me. Thanks....
  • Posted byStephen Dennyon10/27/2006 at 11:54 AM Member
    As a consumer of the type of services you provide, I'd say that

    a) you're billing by the project, which is an estimate of the hours;

    b) the final work product, including source files, are the client's property,

    but c) that doesn't mean you can't retain them in archives yourself and offer to do future modifications for your client...

    This probably isn't a major budget item for your client, so convenience is the most important thing to consider.

    "If you ever need modifications on this file, feel free to call me -- I'll archive a copy -- and as an existing customer you'll get a quick turnaround... after all, I know what you guys like at this point..."

    Good luck!
  • Posted bypghpromoon10/31/2006 at 12:15 PM Author
    Thanks again, colleagues, for your time and expertise! It's a breath of fresh air knowing I won't have to cringe during every project, hoping the client won't ask for source files. You all have explained it very well, thanks.

    -- Paul
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