Understanding Commercial Client Pricing
Have you ever stopped to ask if the project that just landed in your inbox is meant for personal use or commercial use?
Commercial pricing for services is vastly different than most personal services. Why is that? Well -> the scope, expectations and exposure of the finished product is vastly different for commercial projects vs. personal projects!
In the commercial client sector:
Typically your client is willing to invest more into the scope of their project, and likely has higher expectations since the finished work will be used on a larger scale.
You're working business to business and need to make sure you're protected for years to come, even as people turnover at a company. You need to go into the project with clear specifics on the ownership and use of the final product.
But.... What if my client doesn't know the scope of the project yet? Or what if they're not telling me the entire truth? And the biggest question.... how do I price for it?!?
Well, the best way to move forward is to find out more, and protect yourself in the process too! Figure out the scope of the work (as best you can), and plan for growth or changes that may naturally happen throughout the process.
If at any point you suspect the client is intentionally holding back, or if it’s a big project and there are a lot of potential variables that could change the end result now (or 5+ years in the future), triple check your contract boundaries and pricing safeguards. I find this part is especially vital in branding shoots where the scope of the project is defined today, but may drastically evolve beyond the originally defined scope years after that finished product is complete!
For pricing commercial projects, it make sense to add in a stipulation if the finished product is used in a different format than originally defined in the project scope, that current commercial pricing and usage terms may be reassessed at at the appropriate time! This usually comes up when the client wants to use an image for a seasonal ad campaign, a nationwide platform or anything outside of the initial terms!
No matter how you go about your commercial pricing, make sure you have a solid contract in place that is specifically designed for commercial use, and know your ownership rights in the process of completing the work.
Brooke Olsen Consulting is a pricing and business strategist team. We specialize in pricing + profitability, financial education and business strategy for creative business owners and entrepreneurs just like you! We're focused on creating an intentional business and life by breaking down the black box of your financials and system processes. Check out our core values for more of the heart behind our corner!