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Projected costs and cost of product development

When you practice, you will be used to complete a task in the form of time to sell your training, ideas and experiences, thinking, development, and sketch or survey. Whether the work is the secret of all successful cost estimates is to know the value of the time you pay and any cost value.

How to budget, do the cost? As a designer or as a design manager or, in the design, in fact, you can use the time it takes to represent. This time, including your experience, experience, training, education, education and other design-related. Do the design process, are also included within the scope of design time. Such as travel, computer design, etc.; all of these should be beating the cost of design time. Summed up in five categories of costs.

(L) fixed costs;

(2) pro-rata fee;

(3) compensation;

(4) minimum guarantee fee;

(5) the hourly price.

A fixed fee (or a pay want to dump)

Fixed costs can clear the proposed design of the total cost price. The total cost price includes: the design of the direct costs and indirect costs. Design project has been very clear, the design time required to determine the basic, you can use the method of fixed charges.

The direct costs of the design include: the time it takes to design, the use of design resources; the design of indirect costs include the costs involved has been engaged in the design. Such as travel, transportation costs, rent, electricity bills, buy the design of appliances, updated the design of appliances, are aided design costs.

Pro rata fee of

A total design project has a fixed amount, a percentage of the total project amount to the fee of; or less explicitly designed the various costs involved in conducting research and development projects, you can press has clear design cost of the project pro-rata fee, when the project is to further deepen further fee by a corresponding percentage. But pro-rata fee will be reduced or expanded due to the total project budget costs change, so this method also has great adventure elements.

Pro rata to take time-consuming, and also should be noted that the fixed costs included will inevitably occur. To hire cost estimators, cost accounting, with a fee of 1%; to hire project manager fee of 2%. Inevitable fixed costs are added together, the proposed first phase of fixed costs.

3 compensation

Product sales or in proportion to the sales price of each product sales early fee applicable to the public in a very long period of time, mass consumption goods (such as furniture, graphic design, film, books, etc.) . Some risk, if sales of less than a predetermined value, the final design costs amounted to less than you expected in this design project income, or even lose money.

For example, the customer the sale of every one designed chair, l dollars can be paid to the designer, the designer can always have income. A total charge or total sales, such as a year to sell 1 000 chairs, each chair is $ 100 a year the total sales price of $ 100,000, your total fees is the extraction of one percent. Sometimes clients in order to reduce product development costs, I hope that this cooperation agreement signed with the design company.

Your decision not to build on the optimism of the customer sales, should be established on a more specific and objective assessment of the value of the product. You can refer to past sales records, or similar practices and case studies.

4 ensure the end of fee

Minimum guarantee fee is a business in order to obtain advice and guidance to the companys decision-making, product development, new ideas, or have ready access to a variety of design consulting services as a consultant within a certain period, the monthly fixed pay the cost of the design company . This cost is generally low, and consulting fees are usually only used to pay for consulting services not including design work, if in fact the consultants to design any product need to pay additional design fees. If your work is retained by a company, you should not for other competitors to engage in any work. : If we accept the company reserves the right to costs, then you will not able to contract with another company.

5 charge by the hour

One hour design price is agreed upon with the customer. Customers may be reluctant to accept such a situation, because they determine the cost of a limit. But when you listed the time of the work plan and the design is completed, you can enable customers to accept such cooperation. Engaged in a long-term project, such as 12 months or more, about every six months, the revised hourly design price, it may help you deal with usually designed unexpected expenses increased.

The pricing strategy is to design price per hour: imagine you want to get the annual salary of a year do you want to earn to be folded into the hours go inside. Count but also other additional costs, for example, you want to update your computer, electricity, the cost of leased offices, some spend so the rest can be listed into. This number with your experience and qualifications has been shown to participate in the design work, market recognition, credibility and so on. Design price per hour is:

Hour paid the price of X (2070/1273) ten annual ordinary expenses / time minimum profit point, direct costs such as: x 1. 62 + per hour, $ 35 / expenses + assuming time offer of 20% X + direct costs hour fee, into hours of work detail inside, you can be measured in a fixed unit of time, the quality of your work. Excel, and Mind, You own Business and [) ffice Traffic Manager or Filemaker Pr. Three software financial budget is simple and convenient.

Now you can within a year divided by the working time money, so that you may earn money, have a general understanding. Table 8 a 4 year time statistics. Year can be used to work a total of 2080 hours, you can not be 2080 hours in the pay, holidays, how to? If sick leave? Then you do the management of spent time, and then four weeks of paid vacation a year equivalent to down a total of 160 hours, public holidays are counted by hours, 56 hours per person per year have one weeks illness, a week is counted by 24 hours, but also contains you do not like, tired of working . Time of year for administration in one-third of 621 hours is probably average 20 hours inside, at least one hour to do chores, such as meetings, classes, write a check, count electricity, or the computer does not work, you re-boot, and now all these are removed, so is not entirely accurate. These are usually expenses from the cost that you get paid a year down the remaining 1283 hours, you can use fee.

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