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pricing a clay prototype

updated thu 22 feb 01

 

Andrew B Buck on fri 16 feb 01


Sheila,

There are many ways to handle this type of situation. There is no set
amount to charge for prototype production. So much depends on the
specifics of the job. How I would charge for this type of job would
depend on how much of the actual design I was required to provide. If
the person ordering the prototype gives you a detailed design, with
drawings, of the form and the cartooning to be reproduced in clay, then
the best way of determining the money that you receive would be a
straight "time and materials" type of arrangement. A "time and
materials" contract is an easy way, for someone that lacks the experience
necessary to know what to charge, to protect themselves from a financial
loss. In this case you would, before doing the work, need to agree upon
a set cost for the materials to be used, for firing the kiln each time,
shipping the product, and some hourly wage (probably doubled, as a
guesstimate, to include your overhead expenses like studio rent,
lighting, and heat). Then it would just be a matter of keeping track of
all of the above and submitting an invoice when the project is complete.
This method saves the time and possibility of leaving something out that
you would run into by trying to estimate your costs for a firm quote.
The customer might expect you to provide an estimate of the cost, but, it
would not need to be a firm number.

If the customer does not have a detailed design and expects you to
provide it from your education, experience, and innate creative spirit,
then the project should be a more expensive proposition. You could still
arrange for a "time and materials" contract, as above, but you should add
an amount, above the labor of the design, for the experience and artistic
vision that you add to the product. You could add this in to your hourly
wage, add it in as a lump sum or, as some artists, require a percentage
royalty be paid on each sale of your design. The amount you decide to
add for the creative design would reflect the effort that you have made
to get to the point that you can take on a job like this as well as any
fame that you might bring to the final product.

I know that this is not the "easy" answer that you might have been
looking for, but it is the process that is required to find the "right"
answer. After you have done a couple of prototype jobs like this you
might have the experience to develop a flat rate pricing schedule that
works for you and the way you work. Good luck.

Andy Buck
Raincreek Pottery
Port Orchard, Washington

On Fri, 16 Feb 2001 09:05:25 -0800 Kent & Lynne Woodruff
writes:
> I`ve been asked to design and produce a prototype for a soap dish
> which
> includes making the form, cartooning on in , glazing, and firing.
> this
> will be massed produced in Asia . I have no idea how to price
> this
> project. Can anyone help me.?Thanks! Sheila Macdonald
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Kent & Lynne Woodruff on fri 16 feb 01


I`ve been asked to design and produce a prototype for a soap dish which
includes making the form, cartooning on in , glazing, and firing. this
will be massed produced in Asia . I have no idea how to price this
project. Can anyone help me.?Thanks! Sheila Macdonald

bea pix on wed 21 feb 01


i may be coming to this question from a different angle than most on
this list, since i earn the bulk of my income from designing mass
market bed and bath textiles....although i don't have any licensing
arrangements, myself, friends of mine do, and this is how they've
gone about designing products for mass market manufacturers:

if you are designing and not just executing the prototype, my advice
would be to attempt to arrange some sort of design fee up front, plus
a small percentage of sales. the design fee most likely would have to
be an "advance against royalties" which means that the percentage you
would normally get for the first bunch of sales would be eaten up by
the advance you've already been given. it's rare, but you can try, to
get someone to agree to a design fee which is not contingent upon
sales (and then of course you get the percentage in addition)

the soapdish could be the start of a lotion bottle, toothbrush
holder, drinking cup set, and you could suggest that if it appeals to
you.

by the way, royalties take anywhere from 6 months to a year or more
to start coming in, which is why people negotiate the advance against
royalties.

in the end, you may have to settle for a simple design/prototype fee,
but that would be too bad.....maybe you could ask for 3% (3-6 is
standard) and negotiate down to 1 or 2% or even .5% for your first
set of products.....just to get them used to working with you on a
royalty basis.

well there's my 2 cents, or hopefully more than that for you, sheila!

>I`ve been asked to design and produce a prototype for a soap dish which
>includes making the form, cartooning on in , glazing, and firing. this
>will be massed produced in Asia . I have no idea how to price this
>project. Can anyone help me.?Thanks! Sheila Macdonald
>
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