CompuServe Messages

Hi James, Here's my 2 cents worth: We are based in the southeast (Alabama) in between several large metropolitan areas. In order to compete with the companies located in the large cities, and to make this kind of work available to all the folks not in the big cities (and used to paying big city prices) we base our estimates on $30-$40 per hour. The client never sees that number though, for I agree with Don Landis: >> In the animation and CGI business I, too, have found most clients don't care to pay by the hour. They just want to know what their charge is for X result. So, I just think the comparison of hourly rates are totally irrelevant for this industry. >> It is only used for our estimating purposes, because it is still easier for our brains to calculate based on estimated time. We first discuss the project in depth with the client, so we can come up with a reasonably accurate time estimate. That number we multiply by our "hourly rate", then add a percentage markup to cover unforseen expenses or time, usually about 25%-50%, depending upon the impression we got from the client (if they knew exactly what they wanted and were familiar with this kind of work before, there probably wouldn't be much of a markup, if any. But, if they were themselves uncertain as to what they really wanted, the markup would naturally go up a little). Then, the final bottom-line number is what we propose to the client for "X" results. Animation has been sort of a hard sell down here in the south, where if it ain't got nothin' to do with a truck or huntin', it ain't worth the time<g>(I'm a born and bred red-neck, so's I can make fun of us). So I also agree with the idea that where you are also determines, to a certain extent, what you charge and what the local market will accept. So far, in the last two years, we have only had one proposal to a serious client turned down (needless to say, I'm not counting the yo-yo's who only want us to do up-front work and then use our proposal to get someone else's price down, but we're getting better weeding them out). Anyway, that's my 2 cents worth (or, looking back, it looks like about a dime's worth<g>), hope it helps, and give 'em heck!!